Low-Carbon Hydrogen Market: Global Industry Analysis and Forecast (2024-2030) by-production technology, distribution mode, End-use Industry and Region

  • Global Low-Carbon Hydrogen Market size was valued at USD 22.73 Bn. in 2023 and is expected to reach USD 68.22 Bn. by 2030, at a CAGR of 17%.

  • Format : PDF | Report ID : SMR_2223

Low-Carbon Hydrogen Market Overview-

Low-carbon hydrogen refers to hydrogen that is produced through methods that generate minimal greenhouse gas emissions, resulting in a significantly lower carbon footprint compared to traditional hydrogen production processes. This type of hydrogen is considered more environmentally friendly as it reduces the overall impact on the climate, making it a more sustainable option for various applications that require hydrogen as a fuel or feedstock. It's also versatile - suitable for power generation, trucking, and heat-intensive industries like steel and chemicals its applications in such industries have positive impact on the low-carbon hydrogen market.

 

Grey hydrogen which is the most common type is not a sustainable source of energy, on the other side low carbon hydrogen includes green, blue, and aqua hydrogen which are sustainable and cleanest options that help the low-carbon market grow at an exponential rate. Global demand for hydrogen was about 70 million metric tons per year in 2019, Out of which, half was used to make ammonia and fertilizers; half in petrochemical refineries or production such huge demand helped low-carbon hydrogen market grow. There are 169 hydrogen projects currently operational across 162 countries, which supports the production of low carbon hydrogen. There are seven blue hydrogen facilities in operation, four in the US and three in Canada, producing over 350,000 tons of “low-carbon” hydrogen, with more than 20 planned developments in the next decade.

 

As low carbon is produced in various ways, the cost of production changes with the method of production, geographies, supply of raw materials, and infrastructural availability. In 20-23 cost of “grey hydrogen” was between $0.90-$1.78 per Kg and for “green” hydrogen costs range from $3.00 to $8.00 per kg. The price difference between grey and blue hydrogen is predicted to decrease with decreasing natural gas prices and a decline in the cost of CCUS( carbon capture and utilization or storage. Some geographies, such as the European Union and the United Kingdom, are expected to fully phase out grey hydrogen by 2050. China is currently the largest consumer and producer of hydrogen, its hydrogen production reached 33 million tons in 2020.

Low-Carbon Hydrogen Market

 

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Low-Carbon Hydrogen Market Dynamics-

Increased Applications Across Various Industries Drives Low-Carbon Market Growth

The need for hydrogen today is met through fossil fuel, which is driven by the demand for fertilizer production and refining industries. However, in the coming years, these industries are expected to shift to clean hydrogen, such as blue and green hydrogen, by switching their hydrogen-based operations to more environmentally friendly alternatives. This shift will have a positive impact on low-carbon market growth. the emergence of new applications for hydrogen, including steel production, synthetic fuel generation, and heavy road transport, is expected to further drive the growth of the low-carbon hydrogen market. Low-carbon hydrogen can be used in many sectors to replace fossil fuels, like diesel and gasoline, which are used to power cars, trucks, ships, and trains.

 

Hydrogen-powered fuel cells offer a significantly more efficient and environment friendly alternative to traditional combustion technologies. These fuel cells achieve over twice the efficiency of traditional systems while producing less greenhouse gas emissions. Forklifts are one example. Because the refueling time is much faster than for a battery, and because a fuel cell’s output doesn’t wane at low-charge levels, forklifts powered with hydrogen fuel cells already present a competitive option with superior performance and flexibility In 2023 there are around 11,200 hydrogen-powered cars and 20,000 hydrogen-powered forklift trucks in use worldwide, demonstrating the growing low-carbon hydrogen market due to the adoption of this clean energy solution across various industries.

 

Government Initiatives Help Low-Carbon Hydrogen Market Grow

The Government of India has launched the National Green Hydrogen Mission with an initial outlay of INR 19,744 crore (approximately US$2.4 billion) to promote the production and use of green hydrogen in the country. The mission aims to make India a global hub for green hydrogen production and exports by 2030. The total hydrogen demand in India was 6 million tonnes in 2020. The Biden-Harris Administration has announced a $7 billion investment in seven regional clean hydrogen hubs across the United States this increases investors' confidence which dives into low-carbon hydrogen market growth. along with rising investments job opportunities are also increasing, which helps economies to grow.

 

  • Appalachian Hydrogen Hub is using low-cost natural gas available in the region. It is used to produce low-carbon hydrogen. The Appalachian Hydrogen Hub is expected to create more job opportunities around 21,000 direct jobs—including more than 18,000 in construction and more than 3,000 permanent jobs.

 

Low-carbon hydrogen is also used with existing natural gas to reduce CO2 emitted from building energy use, this helps meet heating needs during cold periods in countries with low temperatures. Low-carbon hydrogen helps to improve air quality and decrease health issues caused by pollution. Due to air pollution around 3 million people die prematurely each year, use of low-carbon hydrogen in decarbonizing in various sectors such as transport, chemicals, and iron help reduce the impact on air quality. This helps the Low-Carbon Hydrogen Market grow.

 

Lack Of Infrastructure And High Cost Of Production Slow Downs The Low-Carbon Hydrogen  Market Growth

Production of low-carbon hydrogen faces many challenges in various domains. From a technical point, there are concerns about the reliability and efficiency of the processes involved. The cost and economic viability of low-carbon hydrogen production remain major hurdles, as the current technologies are often more expensive than traditional fossil fuel-based alternatives, this slows down the Low-Carbon Hydrogen Market growth.

 

Cost of hydrogen production in the US

Hydrogen production method

Cost low ($/kg)

Cost high ($/kg)

Cost Mean($/kg)

SMR without CCS

$1.05

$1.50

$1.29

SMR with CCS

$1.71

$2.15

$1.93

Solar Energy

$6.70

$8.30

$7.50

Wind Energy

$6.02

$8.30

$7.50

Hydropower

$4.80

$6.34

$5.57

 

The lack of adequate infrastructure, such as storage and distribution networks. The absence of a robust manufacturing capability for key equipment and the lack of sufficient market-aligning policies creates barriers that hinder the low-carbon hydrogen market growth.

 

Low-Carbon Hydrogen Market Segment Analysis

Based On Product TechnologyElectrolysis is the use of electricity to split water into hydrogen and oxygen molecules. It is considered a clean and sustainable method of hydrogen production as it does not release any greenhouse gas emissions during the process. Electrolyzers can range in size from small, appliance-size equipment that is well-suited for small-scale distributed hydrogen production to large-scale. central production facilities that are tied directly to renewable or other non-greenhouse-gas-emitting forms of electricity production. The Clean Hydrogen Electrolysis Program aims to advance the efficiency and cost-effectiveness of clean hydrogen production through electrolysis such programs help the low-carbon market grow.

 

The U.S. invested $1 billion across the entire innovation chain, from research and development to commercialization and deployment, this program supports the use of carbon pollution-free power sources like wind, solar, and nuclear to split water into hydrogen and oxygen which will help in sustainably producing low carbon hydrogen, this drives the low-carbon hydrogen market growth.

 

Based on the distribution channel segment, the pipelines subsegment dominated the Low-Carbon Hydrogen Market in 2023. Gaseous hydrogen can be transported through pipelines like natural gas is transported. Approximately 1,600 miles of hydrogen pipelines are currently operating in the United States. Such pipelines are located where large end users are situated such as chemical plants, petroleum refineries etc. Transporting gaseous hydrogen using pipelines is a low-cost way to distribute huge amounts of hydrogen to end users this helps the low-carbon hydrogen market. Once built, the pipelines provide a consistent and uninterrupted supply of hydrogen, eliminating the need for further logistical arrangements this increases uninterrupted supply and helps low-carbon hydrogen market grow.

 

This makes pipeline transmission a viable alternative for large-scale hydrogen distribution. The National Green Hydrogen Mission, which aims to accelerate the deployment of Green Hydrogen as a clean energy source, will support the development of supply chains that can efficiently transport and distribute hydrogen. This includes the use of pipelines for export as well as domestic consumption. Government support and the high efficiency and reliability of pipelines for transportation help Low-Carbon Hydrogen Market grow.

Low-Carbon Hydrogen Market1

Low-Carbon Hydrogen Market Regional Insights-

Europe held the largest market share in low low-carbon hydrogen market in 2023. Europe continues to dominate the renewable hydrogen market, with more than half of the world's known renewable hydrogen projects located in the region. Europe has adopted a detailed hydrogen strategy and policy framework to support the uptake of renewable and low-carbon hydrogen which helps to dominate low low-carbon hydrogen market. In September 2022, the Commission approved 'IPCEI Hy2Use', which complements IPCEI Hy2Tech. It will support the construction of hydrogen-related infrastructure and the development of innovative and more sustainable technologies for the integration of hydrogen into the industrial sector. Projects in various countries such as

 

  • Germany plans to harness wind power in the North Sea, with the AquaVentus project aiming to produce 1 million tonnes of green hydrogen per year by 2035
  • Spain has announced several projects that will allow it to produce and distribute low-carbon hydrogen, HyDeal Spain produces 330,000 tonnes of green hydrogen per year, which is the largest renewable hydrogen project in the world.

 

Government initiatives, various investments, and demand for low carbon hydrogen across various sectors like transport, industry, and heating help the low-carbon hydrogen market grow in Europe.

 

Low-Carbon Hydrogen Market Scope

Low-Carbon Hydrogen Market

Market Size in 2023

USD 22.73 Bn.

Market Size in 2030

USD 68.22 Bn.

CAGR (2024(2030)

17%

Historic Data

2018-2022

Base Year

2023

Forecast Period

2024-2030

Low-Carbon Hydrogen Market Segments

By Production Technology

Electrolysis

Steam Methane Reforming with Carbon

Capture and Storage

Biomass Gasification

By Distribution Mode

Pipeline Transportation

Bulk Liquid Hydrogen Transportation

Compressed Hydrogen Transportation

By End Use Industry

Transportation

Power Generation

Industrial Processes

Residential and Commercial Heating

Regional Scope

North America (United States, Canada, and Mexico

Europe – UK, France, Germany, Italy, Spain, Russia, Austria, and Rest of Europe

Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC

Middle East and Africa ( South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa

South America – Brazil, Argentina, Rest of South America

 

Low Carbon Hydrogen Market Key players

  1. Air Liquide
  2. Linde plc
  3. Air Products and Chemicals, Inc.
  4. Siemens Energy
  5. ITM Power
  6. Plug Power Inc.
  7. Ballard Power Systems
  8. Nel ASA
  9. McPhy Energy
  10. ENGIE
  11. Mitsubishi Power
  12. Cummins Inc.
  13. Enapter
  14. FuelCell Energy
  15. Hexagon Composites
  16. Worley Limited
  17. Snam S.p.A.
  18. Bloom Energy


Frequently Asked Questions

The Global Low-Carbon Hydrogen Market is growing at a significant rate of 17% during the forecast period.

1.    Low-Carbon Hydrogen Market: Research Methodology
2.    Low-Carbon Hydrogen Market Introduction

2.1.    Study Assumption and Market Definition
2.2.    Scope of the Study
2.3.    Executive Summary
3.    Global Low-Carbon Hydrogen Market: Competitive Landscape
3.1.    SMR Competition Matrix
3.2.    Competitive Landscape
3.3.    Key Players Benchmarking
3.3.1.    Company Name
3.3.2.    Product Segment
3.3.3.    End-user Segment
3.3.4.    Revenue (2023)
3.3.5.    Company Headquarter

3.4.    Leading Low-Carbon Hydrogen Market Companies, by Market Capitalization
3.5.    Market Structure
3.5.1.    Market Leaders 
3.5.2.    Market Followers
3.5.3.    Emerging Players

3.6.    Mergers and Acquisitions Details
4.    Low-Carbon Hydrogen Market: Dynamics
4.1.    Low-Carbon Hydrogen Market Trends 
4.2.    Low-Carbon Hydrogen Market Dynamics 
4.2.1.1.    Drivers
4.2.1.2.    Restraints 
4.2.1.3.    Opportunities
4.2.1.4.    Challenges

4.3.    PORTER’s Five Forces Analysis
4.4.    PESTLE Analysis
4.5.    Distribution Mode Roadmap
4.6.    Regulatory Landscape by Region
4.6.1.    North America
4.6.2.    Europe
4.6.3.    Asia Pacific
4.6.4.    Middle East and Africa
4.6.5.    South America

5.    Low-Carbon Hydrogen Market: Global Market Size and Forecast (Value in USD Million) (2023-2030)
5.1.    Low-Carbon Hydrogen Market Size and Forecast, By Production Technology (2023-2030)
5.1.1.    Electrolysis
5.1.2.    Steam Methane Reforming with Carbon
5.1.3.    Capture and Storage
5.1.4.    Biomass Gasification 

5.2.    Low-Carbon Hydrogen Market Size and Forecast, By Distribution Mode (2023-2030)
5.2.1.    Pipeline Transportation
5.2.2.    Bulk Liquid Hydrogen Transportation
5.2.3.    Compressed Hydrogen Transportation

5.3.    Low-Carbon Hydrogen Market Size and Forecast, By End Use Industry (2023-2030)
5.3.1.    Transportation
5.3.2.    Power Generation
5.3.3.    Industrial Processes
5.3.4.    Residential and Commercial Heating

5.4.    Low-Carbon Hydrogen Market Size and Forecast, by Region (2023-2030)
5.4.1.    North America
5.4.2.    Europe
5.4.3.    Asia Pacific
5.4.4.    Middle East and Africa
5.4.5.    South America

6.    North America Low-Carbon Hydrogen Market Size and Forecast by Segmentation (Value in USD Million) (2023-2030)
6.1.    North America Low-Carbon Hydrogen Market Size and Forecast, By Production Technology (2023-2030)
6.1.1.    Electrolysis
6.1.2.    Steam Methane Reforming with Carbon
6.1.3.    Capture and Storage
6.1.4.    Biomass Gasification 

6.2.    North America Low-Carbon Hydrogen Market Size and Forecast, By Distribution Mode (2023-2030)
6.2.1.    Pipeline Transportation
6.2.2.    Bulk Liquid Hydrogen Transportation
6.2.3.    Compressed Hydrogen Transportation

6.3.    North America Low-Carbon Hydrogen Market Size and Forecast, By End Use Industry (2023-2030)
6.3.1.    Transportation
6.3.2.    Power Generation
6.3.3.    Industrial Processes
6.3.4.    Residential and Commercial Heating

6.4.    North America Low-Carbon Hydrogen Market Size and Forecast, by Country (2023-2030)
6.4.1.    United States
6.4.2.    Canada
6.4.3.    Mexico 

7.    Europe Low-Carbon Hydrogen Market Size and Forecast by Segmentation (Value in USD Million) (2023-2030)
7.1.    Europe Low-Carbon Hydrogen Market Size and Forecast, By Production Technology (2023-2030)
7.2.    Europe Low-Carbon Hydrogen Market Size and Forecast, By Distribution Mode (2023-2030)
7.3.    Europe Low-Carbon Hydrogen Market Size and Forecast, By End Use Industry (2023-2030)
7.4.    Europe Low-Carbon Hydrogen Market Size and Forecast, by Country (2023-2030)
7.4.1.    United Kingdom
7.4.2.    France
7.4.3.    Germany
7.4.4.    Italy
7.4.5.    Spain
7.4.6.    Sweden
7.4.7.    Russia
7.4.8.    Rest of Europe

8.    Asia Pacific Low-Carbon Hydrogen Market Size and Forecast by Segmentation (Value in USD Million) (2023-2030)
8.1.    Asia Pacific Low-Carbon Hydrogen Market Size and Forecast, By Production Technology (2023-2030)
8.2.    Asia Pacific Low-Carbon Hydrogen Market Size and Forecast, By Distribution Mode (2023-2030)
8.3.    Asia Pacific Low-Carbon Hydrogen Market Size and Forecast, By End Use Industry (2023-2030)
8.4.    Asia Pacific Low-Carbon Hydrogen Market Size and Forecast, by Country (2023-2030)
8.4.1.    China
8.4.2.    S Korea
8.4.3.    Japan
8.4.4.    India
8.4.5.    Australia
8.4.6.    ASEAN
8.4.7.    Rest of Asia Pacific

9.    Middle East and Africa Low-Carbon Hydrogen Market Size and Forecast by Segmentation (Value in USD Million) (2023-2030)
9.1.    Middle East and Africa Low-Carbon Hydrogen Market Size and Forecast, By Production Technology (2023-2030)
9.2.    Middle East and Africa Low-Carbon Hydrogen Market Size and Forecast, By Distribution Mode (2023-2030)
9.3.    Middle East and Africa Low-Carbon Hydrogen Market Size and Forecast, By End Use Industry (2023-2030)
9.4.    Middle East and Africa Low-Carbon Hydrogen Market Size and Forecast, by Country (2023-2030)
9.4.1.    South Africa
9.4.2.    GCC
9.4.3.    Nigeria
9.4.4.    Rest of ME&A

10.    South America Low-Carbon Hydrogen Market Size and Forecast by Segmentation (Value in USD Million) (2023-2030)
10.1.    South America Low-Carbon Hydrogen Market Size and Forecast, By Production Technology (2023-2030)
10.2.    South America Low-Carbon Hydrogen Market Size and Forecast, By Distribution Mode (2023-2030)
10.3.    South America Low-Carbon Hydrogen Market Size and Forecast, By End Use Industry (2023-2030)
10.4.    South America Low-Carbon Hydrogen Market Size and Forecast, by Country (2023-2030)
10.4.1.    Brazil
10.4.2.    Argentina
10.4.3.    Rest Of South America

11.    Company Profile: Key Players
11.1.    Hormel Foods Corporation (Austin, Minnesota, USA)
11.1.1.    Company Overview
11.1.2.    Business Portfolio
11.1.3.    Financial Overview
11.1.4.    SWOT Analysis
11.1.5.    Strategic Analysis
11.1.6.    Recent Developments

11.2.    Air Liquide
11.3.    Linde plc
11.4.    Air Products and Chemicals, Inc.
11.5.    Siemens Energy
11.6.    ITM Power
11.7.    Plug Power Inc.
11.8.    Ballard Power Systems
11.9.    Nel ASA
11.10.    McPhy Energy
11.11.    ENGIE 
11.12.    Mitsubishi Power 
11.13.    Cummins Inc.
11.14.    Enapter
11.15.    FuelCell Energy
11.16.    Hexagon Composites
11.17.    Worley Limited
11.18.    Snam S.p.A.
11.19.    Bloom Energy
12.    Key Findings 
13.    Industry Recommendations

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