Blue Hydrogen

Blue Hydrogen

Blue hydrogen is a type of hydrogen production that involves the use of natural gas, a fossil fuel, to generate hydrogen. The carbon dioxide produced during the hydrogen production process is captured and stored, resulting in a reduction of greenhouse gas emissions compared to traditional fossil fuel-based hydrogen production methods. The blue hydrogen market is expected to grow as countries aim to reduce their greenhouse gas emissions and transition to cleaner energy sources.

The Blue Hydrogen Market was valued at 17880.9 million in 2022 and is expected to grow at a steady rate of around 11.4% during the forecasted period (2023-2030). The development of a hydrogen economy and the increasing demand for hydrogen in industrial processes are driving the growth of the blue hydrogen market. Additionally, the high demand for hydrogen, ammonia, and methanol in the chemical sector is also contributing to the expansion of the blue hydrogen market. For instance, by 2030 in the Announced Pledges Scenario, it is expected that the hydrogen demand for synfuels will reach 1 Mt H2, and by 2050, it will climb to over 15 Mt H2.

• Based on the technology, the market is segmented into steam methane reforming, autothermal reforming, partial oxidation, and others. The steam methane reforming segment is expected to hold a significant share of the blue hydrogen market due to its cost-effective method of producing hydrogen on a large scale. This process involves using natural gas (methane) and steam to extract hydrogen. As natural gas is abundant and relatively inexpensive, it makes blue hydrogen production economically appealing and is driving the market's growth.
• Based on the applications, the market is categorized into ammonia production, methanol production, petroleum refining, power generation, and others. Among these, the power generation segments hold a significant share of the market as it is currently the most cost-effective and reliable way to use hydrogen as a fuel source. The use of hydrogen in power generation has the potential to reduce carbon emissions from the electricity sector, which accounts for a significant portion of global greenhouse gas emissions. According to the International Energy Agency (IEA), the use of hydrogen in power generation is expected to grow by more than 20% per year by 2030.
• For a better understanding of the market adoption of the blue hydrogen industry, the market is analyzed based on its worldwide presence in the regions such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is anticipated to hold a considerable share of the market. North America has a mature renewable energy industry and many hydrogen projects underway, which has created a favorable environment for the development and deployment of blue hydrogen. Among countries, the U.S. is a major player in the blue hydrogen market, with several large-scale projects underway. For example, the Southwest National Renewable Energy Laboratory (SNL) is working on a project to produce blue hydrogen using renewable energy and store it in underground salt caverns. The project is expected to reduce carbon emissions from the power generation sector in the region by up to 90%. Moreover, Canada is also a significant player in the blue hydrogen market, with several large-scale projects underway. For instance, the Saskatchewan government has announced plans to produce blue hydrogen using renewable energy and to export it to other countries.
• Some of the major players operating in the market include Air Liquide; BP; Engie; Equinor; Hydrogenics (now part of Cummins Inc.); Linde; Repsol; Shell; Siemens Energy; and TotalEnergies.