Green Hydrogen Revolution: Displacing Grey Hydrogen in Global Markets
Key Ideas
- Green hydrogen, produced with renewable energy and emitting zero CO2, is set to grow rapidly, reaching 27% of total hydrogen production by 2030 and 55% by 2035.
- ABI Research forecasts the green hydrogen market to grow from US$10 billion to US$180 billion by 2035, displacing grey hydrogen as the primary driver.
- Major regions like Asia-Pacific, Europe, China, and India are investing heavily in green hydrogen to decarbonize industries and meet net-zero regulations.
- Heavy industries such as petrochemical refineries and ammonia producers are shifting towards low-emission hydrogen to reduce costs and embrace sustainability.
Green hydrogen production is on a significant upward trajectory, fueled by demand from hard-to-abate heavy industries seeking decarbonization solutions. Despite currently only accounting for 0.2% of hydrogen production, it is forecasted to dominate the market, reaching 27% by 2030 and 55% by 2035. ABI Research anticipates a substantial market growth from US$10 billion to US$180 billion by 2035, surpassing grey hydrogen as the market leader.
The commitment to green hydrogen is evident globally, with Asia-Pacific leading the charge in investing in electrolysis productive capacity. Major regions like Europe, China, and India are also scaling up production to meet net-zero regulations and reduce operational costs. For instance, Europe's RED II rules mandate 42.5% low-emission hydrogen by 2030. China, currently a significant player in global hydrogen production, is expected to further expand its green hydrogen output at a 38% CAGR until 2035.
This transition to clean hydrogen has dissolved uncertainties about its feasibility for decarbonizing heavy industries, with many sectors recognizing its potential as a sustainable pathway. The market shift towards green hydrogen presents opportunities for industries like petrochemical, chemical, steel, shipping, and aviation to embrace this cleaner fuel. Companies such as Adani Energy, Linde, ITM Power, Sinopec, and Plug Power are highlighted as key players to watch in the green hydrogen and electrolyser market.
The article emphasizes the necessity for industry players to monitor the evolving landscape closely to capitalize on the growth of green hydrogen. By understanding how green hydrogen outperforms grey hydrogen, businesses can position themselves for success amidst the ongoing energy transition. The report from ABI Research provides comprehensive insights and forecasts to guide stakeholders in navigating the changing hydrogen market landscape.