Blue Hydrogen Market To Generate $42,783 Million Revenue by 2030
- Published: January 2023
The blue hydrogen market size is expected to advance at a CAGR of 11.70% during 2022–2030, to reach USD 42,783 million by 2030.
The efforts for the hydrogen economy are driven by the presence of government policies promoting it, as well as the growing environmental concerns because of the rising carbon emissions from the use of fossil fuels.
Currently, a number of processes are utilized to manufacture hydrogen, including steam–methane reforming, coal gasification, partial oxidation of oil, and auto-thermal reforming. Fertilizer factories and petroleum refineries use the majority of the H2. Further, FCEVs, energy storage, and industrial feedstock production are all possible with hydrogen, 99% of which is produced via steam–methane reforming. However, as CO2 is released throughout the process, there are no actual climate advantages.
The U.S. is one of the earliest adopters of sustainable solutions for transportation and power generation. This has been due to the priority placed on clean energy options by the U.S. government. According to the Roadmap to a U.S. Hydrogen Economy report, by 2050, hydrogen from low-carbon sources may meet around 14% of the nation's energy requirements, including those of hard-to-electrify industries, such as fertilizers and those that require high temperatures for manufacturing processes.
Blue hydrogen is created from natural gas and supported by CCUS technologies to capture the CO2 produced during the process and store it underground forever. As a result, clean hydrogen is produced with no effective emission.
Blue Hydrogen Is Widely Consumed in Chemical Industry
The chemical industry holds a significant share of the global revenue. One of the key feedstocks for the chemical industry, hydrogen is frequently employed to produce intermediates, specialty compounds, and bulk chemicals, such as methanol, ammonia, and many types of polymers. Hence, large-scale blue hydrogen plants will benefit from the rising demand for it, due to the growing population.
To achieve zero emissions, governments globally are making efforts and investing in blue hydrogen generation. For instance, the Saudi Arabian government declared in October 2021 that it will initiate one of the largest projects in the world to produce blue hydrogen from natural gas and export it as a fuel, for the switch to green energy. For this, a sizable volume of the gas from the Jafurah development, worth USD 110.0 billion, will be utilized to create blue hydrogen.
Similar to this, ADQ and Mubadala Investment Co. have partnered to generate and export blue and green hydrogen. Additionally, state-run oil corporation Abu Dhabi National Oil Co. has also partnered with two of its sovereign wealth funds. Blue hydrogen is expected to be created from natural gas by Abu Dhabi National Oil Co. independently, using a method that also absorbs carbon emissions.
Moreover, in July 2021, the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian Electricity Holding Company (EEHC) signed a preliminary deal with the Italian energy giant Eni to work together on strategies for sustainable hydrogen generation in Egypt.
The biggest blue hydrogen market players are Dastur Energy, Shell plc, Linde plc, Air Products and Chemicals Inc., Aker Solutions ASA, Exxon Mobil Corporation, Equinor ASA, Uniper SE, Topsoe A/S, Petrofac Limited, and BP p.l.c.