Unlike grey hydrogen, green hydrogen is generated using completely renewable resources or lower carbon-emitting power resources. Different technologies can be deployed in manufacturing green hydrogen using various power sources. Green hydrogen generation technology is still in the phase of evolution and will likely emerge as one of the mainstream technologies by the end of the analysis period.
The Global Green Hydrogen market is expected to witness a CAGR of 16.66% during the forecast period. The revenue generated by the global Green Hydrogen market in 2021 was over USD 941.16 million and is expected to generate revenue worth USD 2,846.52 million in 2028. Therefore, the incremental growth opportunity offered by the global Green Hydrogen is estimated to be USD 13.38 billion between 2022 and 2028.
Interesting Facts about Green Hydrogen Industry
70 million tons of hydrogen are produced globally every year
The production cost of hydrogen from renewable resources is twice as much as natural gas and four times that of coal.
More than 16 countries have favorable policies for hydrogen to be used in transportation.
Around 50 targets, mandates, and policy incentives are in place today that directly support hydrogen, with the majority focused on transport.
Hydrogen production from fossil fuels produces CO2 emissions of around 830 million tons.
Biomass Gasification to Grow at a Rapid Pace
Alkaline Electrolysis, Biomass Gasification, and Proton Exchange Membrane (PEM) Electrolysis are some of the significant technologies deployed in the production of green hydrogen. Biomass Gasification has been gaining much traction over the past few years. Biomass gasification is increasingly being recognized as a critical element in decarbonizing. Biomass gasification is an efficient alternative to green hydrogen production technologies with carbon neutral potential. In contrast, Alkaline Electrolysis dominates the present-day green hydrogen production with over 40% share in 2021. On the other hand, Proton Exchange Membrane (PEM) also holds a significant percentage of the green hydrogen generation market.
Favorable Government Policies to Fuel the Demand for Green Hydrogen Market
An attempt to lower the CO2 emission while increasing the production of hydrogen is leading countries worldwide to draft favorable policies that encourage industry participants to enter into green hydrogen manufacturing practices. Manu countries such as Japan, South Korea, China, and Australia are leading the green hydrogen production as they have limited access to natural gas for hydrogen production. The aforementioned countries have set targets to reach a specific volume of hydrogen using renewable resources coupled with incentives and other facilities. Currently, many countries have set targets, policies, and mandates regarding green hydrogen production in place.
High Cost of Green Hydrogen to Remain a Major Challenge
The high cost of hydrogen generation using renewable resources has remained a significant challenge for the growth of the green hydrogen industry. Compared to its counterparts, that is, hydrogen produced using natural gas and coal, renewable resources based on hydrogen costs are significantly high. Hydrogen generation using natural gas can cost up to USD 0.9 to USD 3.2 per kilo and around USD 1.2 to USD 2.2 per kg for coal. On the other hand, renewable resources-based hydrogen generation can easily cost as high as USD 3.10 to USD 7.5 per kg. Moreover, countries such as Russia, the U.S., and Middle Eastern Countries, where natural gas is abundant, are reluctant to adopt green hydrogen production technologies owing to their higher cost. This, in turn, affects the growth rate of this industry.
Water Resources Segment to Hold Significant Share
Solar, water, wind, and Biomass Resources are some of the significant renewable resources used in green hydrogen generation. Water resources accounted for over 30% of the total green hydrogen generation in 2021. Water resource has remained the cleanliest energy resource. While biomass resource is likely to gain increasing demand over the forecast period.
Transport Application to Increase at a Rapid Pace
Medical, Chemical, Petrochemicals, Transport, and Others are some of the leading global green hydrogen market application markets. Transportation is expected to experience increasing adoption in transportation applications over the forecast period. Australia, Japan, South Korea, and China are likely to witness considerable growth in the usage of green hydrogen in the transportation sector. While the U.S., Europe, and the Middle East register slow growth in the green hydrogen market. Some of the key players involved in the green hydrogen market include but are not limited to AIR LIQUIDE, Ballard Power Systems, Cummins Inc., Engie, Guangdong Nation-Synergy Hydrogen Power Technology Co., Ltd., Linde, Plug Power Inc., Royal Dutch Shell PLC, SGH2 Energy Global LLC, and Siemens
Frequently Asked Questions:
The market for Green Hydrogen Market is expected to reach USD 2,846.52 million in 2028.
The Green Hydrogen Market is expected to see significant CAGR growth over the coming years, at 16.66%.
The report is forecasted from 2016-2028.
The base year of this report is 2015.
Linde, Plug Power Inc., Royal Dutch Shell PLC, SGH2 Energy Global LLC, and Siemens are some of the major players in the global market.
