Rapid Growth of Green Hydrogen: A Game-Changer for Heavy Industries
Key Ideas
- Green hydrogen production is experiencing rapid acceleration, driven by demand from hard-to-abate heavy industries seeking decarbonization and cost reduction.
- ABI Research forecasts that green hydrogen will account for a significant portion of total hydrogen production by 2035, displacing grey hydrogen as the primary driver of the market.
- Major regions like Europe, China, and India are scaling up production of low-emission hydrogen to comply with net-zero regulations, creating a substantial market opportunity.
- The shift towards green hydrogen is seen as a key foundation for the decarbonization of heavy industries, with committed investments and increasing market share globally.
Green hydrogen production is on the rise, fueled by demand from industries looking to reduce carbon emissions and operational costs. Despite currently accounting for only a small fraction of total hydrogen production, green hydrogen is projected to make up a substantial portion by 2035. ABI Research anticipates rapid growth in the green hydrogen market, with estimates suggesting a market size increase from US$10 billion to US$180 billion by 2035. The shift towards green hydrogen is driven by net-zero regulations, with Europe, China, and India leading the way in scaling up production. China, in particular, is expected to significantly increase its green hydrogen output, maintaining a global lead in production. This trend signifies a clear shift towards cleaner hydrogen as a fundamental element in decarbonizing heavy industries. The report emphasizes the need for industries like petrochemicals, chemicals, steel, shipping, and aviation to monitor the evolution of the hydrogen market closely. Key players to watch in the green hydrogen and electrolyser sector include Adani Energy, Linde, ITM Power, Sinopec, and Plug Power. The findings highlight the transformative potential of green hydrogen in paving the way for a more sustainable energy future.