Blue Hydrogen Market Size By Technology (Steam Methane Reforming, Autothermal Reforming, Partial Oxidation), By Application (Petroleum Refining, Chemicals), COVID19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forec

Blue Hydrogen Market Size By Technology (Steam Methane Reforming, Autothermal Reforming, Partial Oxidation), By Application (Petroleum Refining, Chemicals), COVID19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2022 - 2030

The global blue hydrogen market is poised to garner substantial growth over 2030. A rising focus on the development of a low-carbon economy along with extensive investments in the introduction of effective carbon capture, utilization, and storage (CCUS) technology will foster blue hydrogen demand. Rapid advancements in reforming systems and technological innovations have supported the production of blue hydrogen which is a relatively cost-effective fuel in contrast to green hydrogen.

Both developed and developing economies are seeking efficient energy solutions to power various sectors. The presence of massive natural gas reserves across emerging economies will pave the way for CCS adoption for blue hydrogen production. Moreover, the availability of substantial funding, schemes, and programs will encourage market players to establish new facilities featuring CCS.

In March 2022, ExxonMobil, a natural gas giant announced plans for a hydrogen production plant along with one of the world’s largest CCS projects at its integrated refining and petrochemical site in Texas, U.S. The new hydrogen plant is expected to produce up to 1 billion cubic feet of blue hydrogen per day. The project’s carbon capture infrastructure will have the capacity to transport and store nearly 10 million metric tons of carbon dioxide per year.

Several industry players are also launching new low-carbon systems and innovative decarbonization solutions. In June 2021, Technip Energies N.V unveiled Blue H2 by T.E.N. solution to produce cost-efficient & low carbon hydrogen production. The new tool allows a 99% reduction in carbon footprint, and maximization of yield. It also features flight-proven tech to customize the integration of low-carbon power co-generation.

The blue hydrogen industry is bifurcated into technology, application, and region.

Based on technology, the market is fragmented into partial oxidation, steam methane reforming, and autothermal reforming. The partial oxidation segment is projected to expand at over 16% CAGR from 2022-2030. It is an exothermic process that is faster as compared to steam reforming and needs a smaller reactor vessel without taking up too much space. Factors like high suitability for heavy hydrocarbons, minimal methane slip, and zero steam requirement make partial oxidation a suitable decarbonize technology.

In terms of application, the blue hydrogen industry is categorized into petroleum refinery and chemicals. Among these, the chemicals application segment is expected to record significant growth over 2030. Chemical companies are focusing on the production of low-carbon fuels such as blue diesel and methanol using hydrogen as feedstock.

Middle East & Africa blue hydrogen market size is estimated to expand at a sustainable pace over the forecast period. The region has an abundance of potential natural gas reserves. Extensive R&D initiatives to explore sustainable sources for hydrogen production and the development of innovative technologies will augment regional industry expansion.