Clean Hydrogen

Clean Hydrogen

Clean Hydrogen could help us achieve the net zero goal as it helps in carbon sequestration and generation of clean hydrogen. Clean hydrogen is valuable for its ability to be stored and used as clean fuel without direct GHG gas or pollutants emissions and there are a wide variety of clean production pathways for its production. Hydrogen gas can be of three types: grey, blue, and green, depending on its production pathway.

The Clean Hydrogen Market is expected to grow at a steady rate of around XX% owing to the increasing investment/sales of fuel-cell electric vehicles. The implementation of new technology and the global move towards the electrification of vehicles has a significant growth in the clean hydrogen market. In recent years, there has been a significant demand for electric vehicles all over the world. The rise in EV sales directly contributes to the boom of the clean energy sector, leading to accelerated demand for renewable energy resources along with solar and wind power. This surge in clean energy integration creates an opportunity for electrolysis, a technique that makes use of electricity to produce hydrogen from water. This clean hydrogen can then be utilized as a carbon-neutral fuel, offering a viable strategy to store and transmit surplus renewable energy. Additionally, the expanding EV market encourages advancements in hydrogen fuel cell technology for long-range motors, further riding the demand for clean hydrogen. For instance, according to the report published by the International Energy Agency, a Paris-based autonomous intergovernmental organization that provides policy recommendations, analysis and data on the entire global energy sector have reported the global sales of electric vehicles in the year 2021 were 6.5 million units increased to 10.3 million in 2022, and further reached to 13.9 million in the year 2023. Moreover, government policies like zero-emission vehicle mandates and fuel economy standards are long-term goals for the auto industry which are supporting the economic transition to electric vehicles. This will influence the growth in the sales of electric vehicles influencing the growth in the clean hydrogen market.

• Based on technology, the market is divided into alkaline electrolyzer, PEM electrolyzer, and SO Electrolyzer. Among these, the alkaline electrolyzer dominated the clean hydrogen and is expected to show the same trend in the forecast period. Alkaline electrolyzers are one of the most common types of technologies used in the production of hydrogen. These systems are usually composed of electrodes, a microporous separator, and an aqueous alkaline electrolyte of around 30% by weight KOH or NaOH solution. Moreover, alkaline electrolyzers provide value advantages over different forms of electrolysis technologies. They employ ample and inexpensive materials, including nickel-based catalysts, which make contributions to their affordability. This makes them a favorable preference for mass manufacturing and huge-scale hydrogen production, supporting the growing demand for clean energy solutions. Furthermore, alkaline electrolyzers have a high conversion efficiency, effectively splitting water into hydrogen and oxygen. This ensures minimal energy losses in the course of the electrolysis procedure, leading to higher overall performance in producing clean hydrogen. For instance, in 2023, ThyssenKrupp Nucera introduced a new product name for its 20 MW alkaline electrolysis module, which will henceforth be called ‘scalum’. The launch of the new product name marks the next milestone in the long-term development of the ThyssenKrupp Nucera brand.
• Based on end-users, the market is segmented into transport, power generation, industrial, and others. Among these, the transport segment has a high market share in 2022 and will dominate during the forecast period. This is due to the growing demand for hydrogen cars in the recent years. Moreover, the demand for fuel-cell electric vehicles is driven by initiatives taken by governments of various countries to promote hydrogen cars as these cars produce only water vapor as exhaust, which is much cleaner than the carbon emissions produced by traditional gasoline-powered cars. Moreover, Hydrogen has a much higher energy density than gasoline, which means that hydrogen-powered cars can travel further on a single tank of fuel. This makes them an attractive option for long-distance travel. For instance, in 2022, according to the report published by MDPI, the sales of FCEVs increased year on year from 25,212 units in 2019 to 34,804 in 2020 to 51,437 in 2021.
• For a better understanding of the market adoption of the clean hydrogen, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), and Rest of World. Europe has dominated the market and is projected to be the dominating region in the forecast period. The dominance of the region is due to various factors which include the de-carbonization strategy of the European Commission which is part of the EU Green Deal and includes the latest push of the region for wider adoption of low-carbon technologies including clean hydrogen. The European Commission is setting up a “Hydrogen Energy Network” with the help of an informal group of experts composed of representatives from the ministries who oversee energy policies in the EU member states. The “Hydrogen Initiative” declaration has been signed by 28 countries promoting the usage of sustainable hydrogen technologies. Additionally, in November 2022, the Dutch government announced €22m of investment to subsidize the build-out of hydrogen filling stations appropriate for heavy goods vehicles, as well as the trucks themselves. This has further created the demand for clean hydrogen in the region. Moreover, the persistent government support from countries to make FCEVs affordable and easily accessible to consumers has also catered to the demand for clean hydrogen in the region.
• Some of the major players operating in the market include Siemens Energy, Air Liquide, Engie, Uniper SE, Air Products Inc., Cummins Inc., Toshiba Energy System & Solution Corporation, Nel ASA, Linde plc, Green Hydrogen System.