Blue Hydrogen Market

Blue Hydrogen Market

New York, January 2024: According to a new research study by Global Insight Services (GIS), the Blue Hydrogen market is expected to grow rapidly over the next 10 years to reach a value of more than US$ 51.4 billion by 2033.

Blue hydrogen is produced through a process called steam methane reforming, where natural gas is converted into hydrogen and carbon dioxide (CO2) with carbon capture and storage (CCS) to mitigate environmental impact. Unlike grey hydrogen, which emits CO2 directly, blue hydrogen captures and stores its carbon emissions underground. While considered a transitional solution, critics argue that it still relies on fossil fuels and may pose environmental risks. Proponents see it as a pragmatic step towards decarbonizing the hydrogen sector, providing a cleaner alternative to conventional methods while infrastructure for green hydrogen production is being developed.

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Blue Hydrogen Market: Key Drivers

The surge in regulations addressing greenhouse gas (GHG) emissions has propelled the growth of the blue hydrogen market. Governments globally are intensifying efforts to combat climate change, imposing stringent emission reduction targets on industries. Blue hydrogen, produced through steam methane reforming with carbon capture and storage (CCS), aligns with these regulations by significantly lowering carbon dioxide (CO2) emissions compared to conventional grey hydrogen production. The process involves capturing and storing CO2 underground, mitigating its environmental impact.

As nations commit to net-zero goals, blue hydrogen serves as a transitional solution, offering a cleaner alternative to traditional hydrogen production methods reliant on fossil fuels. Incentives and subsidies further encourage industries to adopt blue hydrogen, fostering market expansion. Additionally, partnerships between governments and private sectors promote the development of carbon capture technologies, enhancing the feasibility and scalability of blue hydrogen production.

The regulatory push, coupled with growing awareness of environmental sustainability, positions blue hydrogen as a pivotal player in the evolving energy landscape. Its capacity to meet emission standards while maintaining energy security underscores its role as a bridge towards a more sustainable hydrogen economy amid the ongoing global shift towards cleaner energy sources.

Blue Hydrogen Market: Market Restraints and Challenges

The growth of the blue hydrogen market faces hindrance due to energy loss incurred during its production. The process of blue hydrogen production, involving steam methane reforming and carbon capture and storage (CCS), demands substantial energy input. The energy-intensive nature of this method diminishes its overall efficiency and environmental benefits. The conversion of natural gas into hydrogen and the subsequent capture and storage of carbon dioxide (CO2) involve complex operations, each contributing to energy losses at various stages.

High energy requirements not only reduce the economic viability of blue hydrogen but also counteract its intended role in mitigating greenhouse gas emissions. The energy loss diminishes the net environmental gains achieved by capturing and storing CO2. This inefficiency raises concerns about the actual carbon footprint of blue hydrogen and its competitiveness against other cleaner alternatives, such as green hydrogen produced through renewable energy sources.

Blue Hydrogen Market Report Findings

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The Steam Methane Reforming segment is likely to hold the major share of the market in 2022

On the basis of Technology, the Blue Hydrogen Market is segmented into Steam Methane Reforming, Gas Partial Oxidation, and Auto Thermal Reforming. The Steam Methane Reforming segment is expected to have the largest Blue Hydrogen market share in 2023. SMR is a dominant method for blue hydrogen production, involving the conversion of natural gas into hydrogen and carbon dioxide (CO2) with subsequent carbon capture and storage. Widely adopted in the industry, SMR provides a mature and scalable technology for large-scale hydrogen production. As demand for hydrogen rises and nations embrace cleaner energy solutions, the established infrastructure and efficiency of SMR contribute to the expansion of the blue hydrogen market, positioning it as a crucial player in the transition towards a more sustainable energy landscape.

The Pipeline segment is likely to hold the major share of the market in 2022

Based on Transportation, the Blue Hydrogen Market is classified into Pipeline and Cryogenic Liquid Tankers. The Pipeline segment is expected to have the largest Blue Hydrogen market share in 2023. As blue hydrogen production centers emerge, an efficient transportation infrastructure is essential. Pipelines offer a reliable and cost-effective means to transport hydrogen from production facilities to end-users, fostering the market’s expansion. This dedicated infrastructure facilitates the integration of blue hydrogen into existing energy systems, supporting industries and regions in their transition towards cleaner energy sources. The development and optimization of hydrogen pipelines contribute to the overall viability and competitiveness of blue hydrogen, reinforcing its position as a key player in the evolving landscape of sustainable energy solutions.

The Power Generation segment is likely to hold the major share of the market in 2022

On the basis of Application, the Blue Hydrogen Market is segmented into Chemical, Petroleum Refinery, Power Generation, and Others. The Power Generation segment is expected to have the largest Blue Hydrogen market share in 2023. Blue hydrogen serves as a versatile and low-carbon energy source, particularly valuable in power generation. As nations transition towards cleaner energy alternatives, blue hydrogen’s role in providing a reliable and dispatchable energy option becomes crucial. Power plants can efficiently utilize blue hydrogen to produce electricity, offering a cleaner alternative to conventional fossil fuels. This versatility positions blue hydrogen as a key player in the evolving energy mix, contributing to a more sustainable and environmentally friendly power generation landscape.

The North America region is likely to hold the major share of the market in 2022

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. The North America market is expected to have the largest Blue Hydrogen market share in 2023. With a proactive approach to carbon reduction and a commitment to cleaner energy, North American countries are investing in blue hydrogen as a transitional solution. Robust regulatory frameworks, financial incentives, and collaborations between governments and industries support the development of blue hydrogen projects. The region’s existing infrastructure and access to abundant natural gas resources further contribute to its prominence in the blue hydrogen market, positioning North America as a key driver in the global shift towards sustainable and low-carbon hydrogen solutions.

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Competitive Landscape

The key players studied in the Blue Hydrogen market are Aker Solutions ASA (Norway), BP p.l.c. (UK), Dastur Energy (US), Eni S.p.A. (Italy), Equinor ASA (Norway), Exxon Mobil Corporation (US), Honeywell International Inc. (US), INEOS (UK), Johnson Matthey Plc (UK), Linde plc (Ireland), Petrofac Limited (US), Shell (UK), Technip Energies N.V. (France), thyssenkrupp Uhde GmbH (Germany), and Topsoe A/S (Denmark).

Blue Hydrogen Market: Recent Developments

  • November 2023, The current hydrogen production plant in Rotterdam, Netherlands, will have a carbon capture and carbon dioxide (CO2) treatment facility constructed, owned, and run by Air Products and Chemicals. The project is anticipated to come online in 2026. Through Air Products’ hydrogen pipeline network system, Exxon Mobil’s Rotterdam refinery and other clients will receive the blue hydrogen product that is produced.
  • April 2023, A new collaboration between Casale SA and Technip Energies aims to license technologies based on oxidative reforming, auto thermal reforming (ATR), and partial oxidation (POx) for the blue hydrogen market.
  • February 2023, The world-scale blue ammonia factory being built by OCI in Beaumont, Texas, will get clean hydrogen and other industrial gases from Linde under a long-term arrangement that was just inked. To supply clean hydrogen to OCI’s global blue ammonia project on the US Gulf Coast, Linde is investing $1.8 billion.
  • May 2022, BP has made significant progress in fortifying its strategic alliance with ADNOC and Masdar of Abu Dhabi by enlisting global involvement in its proposed blue and green hydrogen projects on Teesside, northeast England. ADNOC will invest 25% of the design phase of BP’s H2Teesside blue hydrogen project. ADNOC’s first investment in the UK will be this one. The project will now be advanced by BP and ADNOC, initially to the pre-FEED level of design. By 2030, H2Teesside is scheduled to create two 500MW hydrogen production units, launching the UK’s hydrogen economy on a large scale. The goal of the project is to begin operations in 2027.

Blue Hydrogen Market Report Coverage

  • The report offers a comprehensive quantitative as well as qualitative analysis of the current Blue Hydrogen Market outlook and estimations from 2023 to 2033, which helps to recognize the prevalent opportunities.
  • The report also covers qualitative as well as quantitative analysis of Blue Hydrogen Market in terms of revenue ($Million).
  • Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the Blue Hydrogen industry.
  • A thorough analysis of market trends and restraints is provided.
  • By region as well as country market analysis is also presented in this report.
  • Analytical depiction of the Blue Hydrogen Market along with the current trends and future estimations to depict imminent investment pockets. The overall Blue Hydrogen industry opportunity is examined by understanding profitable trends to gain a stronger foothold.
  • Porter’s five forces analysis, SWOT analysis, Pricing Analysis, Case Studies, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the Blue Hydrogen Market are also analyzed.

Blue Hydrogen Market Segmentation

By Technology

  • Steam Methane Reforming
  • Gas Partial Oxidation
  • Auto Thermal Reforming

By Transportation

  • Pipeline
  • Cryogenic Liquid Tankers

By Application

  • Chemical
  • Petroleum Refinery
  • Power Generation
  • Others

By Region

  • North America
    • The U.S.
    • Canada
    • Mexico
  • Europe
    • The U.K.
    • Germany
    • France
    • Spain
    • Italy
    • Netherlands
    • Sweden
    • Switzerland
    • Denmark
    • Finland
    • Russia
    • Rest of Europe
  • The Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Singapore
    • Indonesia
    • Taiwan
    • Malaysia
    • Rest of Asia-Pacific
  • Rest of the World
    • Latin America
    • The Middle East
    • Africa

Key Players