Green Hydrogen Market

Agreements/contracts, expansions, acquisitions, and new product developments are key strategies adopted by leading players in the Green Hydrogen Market

As per the US Department of Energy, green hydrogen is carbon-free hydrogen produced by the electrolysis of renewable and nuclear resources. The electrolysis process uses electricity to split water into hydrogen and oxygen; the process takes place in a unit called an electrolyzer. Electrolyzers are available in small and large sizes. Small-capacity electrolyzers are used for small-scale distributed hydrogen production. In the case of large-capacity electrolyzers, hydrogen production facilities can be tied directly to renewable or other non-greenhouse-gas-emitting forms of electricity production.

The global green hydrogen market is projected to grow from USD 676 million in 2022 to USD 7,314 million by 2027, at a CAGR of 61.0% during the forecasted period. The markets growth is attributed to the expanding chemical industry, water treatment plants in developing nations, and the demand for air purification due to high pollution loads emitted into the atmosphere.

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Green Hydrogen are increasingly used in the mobility, power, industrial, grid injection, chemical and other end-use industries. The increasing demand of mobility industry drives the demand for green hydrogen. The major drivers for the green hydrogen market include low variable electricity costs, technological advancements, Global plans for net-zero emissions by 2050. The initial cost involved with the production of green hydrogen is very high, while the lack of infrastructure to transport and store it poses an additional challenge and this can restrain the market from growing. Some of the opportunities for manufacturers include decreasing costs of electrolyzers which are used in production of hydrogen. The biggest challenge faced by green hydrogen manufacturers is the initial investment required to set up a production plant and the transportation costs associated with its postproduction. The development of renewable energy power plants and the setting up of electrolysis technology to provide efficient energy conversion are the biggest challenges. The global green hydrogen market is estimated to be USD 676.2 million in 2022 and is projected to reach USD 7314.8 million by 2027, at a CAGR of 61.0% between 2022 and 2027.

Companies operating in the green hydrogen market have strengthened their position by adopting expansions, partnerships, agreements, new product/technology launches, joint ventures, contracts, and mergers & acquisitions from 2017-2022. For instance, in October 2022, Lhyfe and GAUSSIN signed a MOU to study the possibility of developing a comprehensive renewable mobility solution combining the hydrogen vehicles of GAUSSIN and the green and renewable hydrogen produced by Lhyfe. The partnership also includes a commercial component aimed at identifying potential customers, in France and abroad, likely to be interested in such an all-round renewable mobility solution for logistics, port and airport sites.

Siemens Energy AG (Germany), Toshiba Energy Systems & Solutions Corporation (Japan), Nel ASA (Norway), Linde plc (Ireland), Cummins Inc. (US), H&R Ölwerke Schindler GmbH (Germany), Wind to Gas Energy GmbH & Co. KG (Germany), Guangdong Nation-Synergy Hydrogen Power Technology Co., Ltd. (China), Air Liquide S.A. (France), and Air Products and Chemicals, Inc. (US) are some of the key players in the green hydrogen market.

Siemens Energy AG is one of the major key players in the green hydrogen market. Siemens Energy AG is an energy company formed by the spinoff of the former gas & power division of Siemens Group and includes a prominent share (67%) of Siemens Gamesa. The company provides energy technology solutions. It operates through two segments: gas & power and Siemens & Gamesa renewable energy. The gas & power segment offers a wide range of products and services in power transmission and conventional central and distributed power generation alongside industrial applications for the oil & gas industry and industrial process applications. The Siemens & Gamesa renewable energy segment focuses on promotion, designing, manufacturing, and technologically advanced product supply in the renewable energy sector, it also is focusing on wind power plants. The company aims at integrating renewables in developed industry, energy, and mobility infrastructures with Power-to-X solutions using green hydrogen. Green hydrogen is generated using PEM electrolysis with the help of renewable energy. The company is focusing on the development of green hydrogen and important projects such as the DEWA green hydrogen project (Dubai). It has an operational plant in Austria.

Lhyfe, a pure player in hydrogen production, was founded by a team of experts who aimed at connecting nature and energy needs without any prejudice to natural resources. It is a Nantes-based company, created in 2017, for the production of green hydrogen and to reduce emissions of carbon dioxide and associated pollutants. This hydrogen is mainly intended for mobility (transport of goods and people) and the industry to reduce greenhouse gas emissions. Their production absorbs a power of 60 MW and generates 6,000 to 10,000 tons of hydrogen per year. Therefore, the company signed a framework agreement with Norwegian Nel, a world leader in the manufacture of electrolyzers and the benchmark in this industry since 1927. Lhyfe is an independent company acting for the environment.

Air Products and Chemicals, Inc. is an American international corporation that serves globally with a unique portfolio of products, services, and solutions that include atmospheric gases and specialty gases, equipment, and services. Leonard P. Pool founded the company in 1940. The company operates in technology, energy, healthcare, food, and industrial markets globally, with atmospheric industrial gases (mainly oxygen, nitrogen, argon, hydrogen, and carbon dioxide), process and specialty gases, performance materials, and chemical intermediates. The company produces refinery hydrogen, natural gas liquefaction (LNG) technology and equipment, epoxy additives, gas cabinets, advanced coatings, and adhesives.  Air Products also provides liquid hydrogen and liquid oxygen fuel for the space shuttle external tank. The company has had a working relationship with NASA for 50 years and has supplied liquid hydrogen used for every space shuttle launch and the Mercury and Apollo missions.

Related Reports:

Green Hydrogen Market by Technology (Alkaline and PEM), Renewable Source (Wind, Solar, Geothermal, Hydropower, and Hybrid of Wind & Solar), End-Use Industry (Mobility, Power, Chemical, Industrial, Grid Injection), and Region - Global Forecast to 2027

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Green Hydrogen Market Size,  Share & Growth Report
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