Global Blue Hydrogen Market Size, Share & Trends Analysis Report By Type, By Packaging, By Region, and Segment Forecasts, 2023 - 2030
  • Published Date: Aug, 2023
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  • Pages: 220
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Blue hydrogen is steam methane reforming (SMR) or autothermal reforming (ATR) processes in conjunction with carbon capture and storage (CCS) technology. As it intends to reduce the greenhouse gas emissions linked to conventional techniques of producing hydrogen, it represents a significant achievement in the field of clean energy. From a climate standpoint, the combination of carbon capture and storage with hydrogen production offers numerous important advantages. Blue hydrogen can significantly contribute to the decarbonization of challenging industries like heavy industry and transportation by lowering greenhouse gas emissions.

Recently Hydrogen Council estimates that demand for hydrogen could exceed 530Mtpa by 2050, and if that demand was met by clean hydrogen, could deliver 6Bt CO2 abatement in that year (Hydrogen Council 2017 use of blue hydrogen increasing. As a feedstock or reducing agent, hydrogen is the only practical alternative in several industrial sectors, such as steel, cement, and chemicals. These "hard-to-abate" sectors can continue to operate while significantly reducing their carbon emissions thanks to blue hydrogen's carbon capture technology.

The Global Blue Hydrogen Market was valued around US $18.7 BN in 2022 and is expected to reach US $44.9 BN by 2030 with a CAGR of 13.23% during the forecast period.

Factors Driving the Market

Drivers

Rising concern towards Environment protection

The global blue hydrogen market is the growing focus on reducing greenhouse gas emissions and promoting renewable energy sources. More than half of the demand for the blue hydrogen is used in oil refining. Refineries use vast quantities of hydrogen to de-sulfurize crude oil to make petrol, diesel, and other chemicals. the carbon dioxide emissions produced are then captured and stored underground using the carbon capture utilization and storage (CCUS) technology leaving nearly pure hydrogen. increasing demand for hydrogen in industries such as steel, chemicals, and refining, which are difficult to decarbonize using other renewable energy sources. Beyond the oil refining industry, other challenging industries like steel and chemicals are seeing an increase in demand for blue hydrogen. These industries depend heavily on hydrogen because it is essential to many production processes, and switching from regular hydrogen to blue hydrogen can significantly reduce carbon emissions.

Across the globe, governments are adopting a proactive approach toward developing and expanding hydrogen technologies, particularly blue hydrogen production. For instance, they may provide grants, tax credits, subsidies, and research funding to encourage the growth of this vital sector. These measures are expected to boost the adoption of hydrogen technologies and help countries to achieve their climate goals.

Challenges

Cost and methane leakage issue

The Global Blue Hydrogen Market face issue check as lack of infrastructure for hydrogen transportation, storage, and distribution, and Presence of greenhouse gas methane in natural gas, and the need to burn natural gas for large amounts of energy required for producing blue hydrogen are some restraints for the growth of the global blue hydrogen market. Blue hydrogen production generates CO2 and methane emissions that can harm the environment. Methane leakage during extraction, transportation, and production processes also reduces its environmental benefits. These factors must be considered when evaluating the environmental impact of blue hydrogen.

Blue hydrogen production, with carbon capture and storage, is expensive than other hydrogen. Its production requires to be enhanced to fulfil demand in order to become cost-competitive. For blue hydrogen to be a viable energy source, this problem needs to be solved.

Other challenges include highly competition face by other hydrogen, methane emission and cost factors.

Trends

Growing popularity of premium blue hydrogen & government initiative

Governments are promoting the development and adoption of blue hydrogen as a transition for industries with high carbon emissions, with more countries investing in infrastructure development and offering incentives. Furthermore, awareness among people is also increasing trend towards blue hydrogen. Public awareness of blue hydrogen's advantages as a sustainable energy source and its safety issues is crucial. To raise knowledge of this clean energy source and how it can help us lower our carbon footprint and lessen the effects of climate change, educational and outreach activities have been put in place.

For instance, in 2021, Suncor entered into partnership with ATCO for expansion of clean hydrogen project in Alberta. Project would produce more than 300,000 tonnes per year of clean hydrogen using advanced technology to capture more than 90% of the emissions generated in the hydrogen production process. Technology developments and cost reductions in CCS have been an important trend because blue hydrogen depends on it to cut emissions. Research efforts are concentrated on enhancing CO2 capture effectiveness and investigating novel storage methods to optimize the entire carbon capture process.

Other trends include international partnership & collaboration, integration with renewable energy, rising awareness.

Market Segmentation

By Technology

Based on technology, the market is divided into Steam Methane Reforming (SMR), Gas Partial Oxidation (POX), Auto Thermal Reforming (ATR). Steam Methane Reforming (SMR) led the global blue hydrogen market in 2022 and is expected to continue to lead the market during the forecast period. This segment contributed around XX% in 2022. The demand for SMR is rising due to the rise in government initiatives to shift toward clean energy sources and rising trends toward renewable energy across world. The energy system will require technological changes in order to achieve net zero emissions by 2050. Energy efficiency, behavioral change, electricity, renewable energy, carbon capture, utilization and storage (CCUS), and hydrogen are anticipated to be the major pillars for decarbonizing the global energy system.

Auto Thermal Reforming (ATR) will be the fastest growing segment during the forecast period with a CAGR of around XX%, owing to increasing need for blue hydrogen across the globe. Both governmental and commercial sectors have increased their investments in the blue hydrogen sector. Governments and businesses all around the globe are investing in research, development, and pilot projects pertaining to the generation of blue hydrogen and carbon capture technology because they understand how important hydrogen is as a low-carbon energy source.

By End User

Based on end user, the market is divided into petroleum refineries, chemical industry, power generation facilities. The petroleum refineries led the global blue hydrogen market in 2022 and is expected to continue to lead the market during the forecast period. This segment contributed around XX% in 2022. Hydrogen is a key component in the production of valuable products at refineries. However, these actions must adhere to tight government regulations, which forces businesses to lower their carbon footprint. Additionally, the UK government declared that to contributing $185 million to the objective of decarbonizing industrial clusters. The viability of using hydrogen for buildings is also being studied, as is the possibility of mixing up to 20% hydrogen into its natural gas infrastructure. These program existence in the UK will fuel the expansion of the blue hydrogen market.

By Regions

By geography the market is divided into the North America, Europe, APAC, and others. North America led the blue hydrogen market in 2022 with the market share of around XX%. Increased awareness, affordability and availability of the blue hydrogen in the U.S are the prime factors for the high market share of North America region.

APAC will be the fastest growing region during the forecast period with a CAGR of around XX% due to the ongoing research efforts by different industry to develop new blue hydrogen. Furthermore, encouraging government attempts to reduce carbon emissions, this region has also seen an increase in the adoption of green fuel alternatives and related technology. The tremendous urbanization and industrialization occurring in countries like China and India has led to the mass acceptance of affordable, sustainable energy solutions.

Competitive Landscape

The global blue hydrogen market is concentrated with only two players with approved blue hydrogen present in the market namely ATCO and Siemens.  

ATCO is a leading Canadian diversified energy and infrastructure company significant operations in Canada and Australia. The company's diverse portfolio includes electricity, natural gas, pipelines, logistics, and construction, making it a key player in the energy and infrastructure sectors. In 2022, Canada government invested in Alberta's clean hydrogen sector.

Government and industry are working together to build a clean and strong economy that supports good jobs and positions Canada as a reliable supplier of energy in a net-zero world.

Siemens is the second revenue generator in the market. It is a global powerhouse focusing on the areas of electrification, automation and digitalization. It is an international powerhouse that prioritises electrification, automation, and digitization. The German conglomerate makes everything from healthcare and building technologies to factory automation and power distribution equipment. In 2022, siemens entered into agreement with Egyptian Electricity Holding Co. to enhance production of blue hydrogen through the storage of CO2 in depleted gas fields.

Companies Developing Blue hydrogen and in Trial Phase

  • Cummins – Cummins is a global power leader that makes diesel- and natural gas-powered engines for the heavy and mid-duty truck, RV, automotive, and industrial markets as well as for the marine, rail, mining, and construction industries
  • Suncor Energy – It is strategically focused on developing one of the world's largest petroleum resource basins - Canada's Athabasca oil sands. Suncor's operations include oil sands development production and upgrading: offshore oil and gas: petroleum refining in Canada and the US; and the company's PetroCanada retail and wholesale distribution networks.
  • Uniper – It is a parent owned international energy company with operations in more than 40 countries. It owns and operates power plants across Europe and in Russia. The company also trades energy commodities (including power, natural gas, and coal) and is engaged in natural gas storage and energy sale. In 2022, Uniper signed an agreement with Shell to produce blue hydrogen at Uniper’s Killingholme power station site, in the East of England.
  • Saudi Aramco – Saudi Aramco is engaged in prospecting, exploring, drilling, extracting, processing, manufacturing, refining and marketing hydrocarbon substances within the UK and has interests in refining, petrochemical, distribution, marketing and storage facilities outside the UK.
  • Johnson Matthey – It is a global leader in science that enables a cleaner and healthier world. It makes catalysts and licenses process designs and technologies that help customers in the chemicals and energy industries turn a wide range of feedstock into many of products that are essentials for modern life. In 2023, Johnson Matthey (JM) partnered with Diffusion Alloys, a specialist diffusion coatings producer to scale-up production and enable the increasing demand for low carbon hydrogen used to reduce global carbon emissions.

Recent Developments

  1. March 8, 2022: Air Products Inc. has announced the construction and operation of the new liquid hydrogen production plant in Casa Grande, Arizona. It will be a zero-carbon liquid hydrogen facility and will be operational by 2023.
  2. January 28, 2022: Linde plc has signed an agreement with Yara to construct and deliver a 24 MW hydrogen plant.

Blue hydrogen Market Scope

Report Components Details
Base Year

2022

Forecast Period

2023 – 2030

Quantitative Units

Revenue in US $ 

Drivers

Reducing greenhouse gas emissions and moving towards a low-carbon energy future.

Challenges

Highly competition face by other hydrogen, methane emission and cost factors.

Trends

International partnership & collaboration, integration with renewable energy, rising awareness.

Segments Covered

Technology (Steam Methane Reforming (SMR), Gas Partial Oxidation (POX), Auto Thermal Reforming (ATR)), End User (Petroleum Refineries, Chemical Industry, Power Generation Facilities)

Countries Covered

U.S. and Canada in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina, Mexico and Rest of South America as part of South America

Market Players Covered

ATCO, Siemens

Table of Contents

1... Introduction

1.1 Research Scope

1.2 Market Segmentation

1.3 Research Methodology

2... Executive Summary

3... Market Dynamic

3.1             Market Drivers

3.2             Market Restraints

3.3             Market Opportunities

4... Key Insights

4.1             Number of Major Developments on Blue Hydrogen Performed in Key Countries, 2021/2022

4.2             New Product Launches, By Key Players

4.3             Key Industry Developments

4.4             Impact of COVID-19 on the Blue Hydrogen Market

4.5             Regulatory & Reimbursement Scenario, By Key Countries

5... Global Blue Hydrogen Market Analysis, Insights and Forecast, 2019-2030

5.1             Market Analysis, Insights and Forecast – By Technology

5.1.1            Steam Methane Reforming (SMR)

5.1.2            Gas Partial Oxidation (POX)

5.1.3            Auto Thermal Reforming (ATR)

5.2              Market Analysis, Insights and Forecast – By End User

5.2.1            Petroleum Refineries

5.2.2            Chemical Industry

5.2.3            Power Generation Facilities

5.5             Market Analysis, Insights and Forecast – By Region

5.5.1            North America

5.5.2            Europe

5.5.3            Asia Pacific

5.5.4            Latin America

5.3.5            Middle East & Africa

6... North America Blue Hydrogen Market Analysis, Insights and Forecast, 2019-2030

6.1             Market Analysis, Insights and Forecast – By Technology

6.1.1            Steam Methane Reforming (SMR)

6.1.2            Gas Partial Oxidation (POX)

6.1.3            Auto Thermal Reforming (ATR)

6.2              Market Analysis, Insights and Forecast – By End User

6.2.1            Petroleum Refineries

6.2.2            Chemical Industry

6.2.3            Power Generation Facilities

6.3              Market Analysis, Insights and Forecast – By Country

6.3.1            U.S.

                     6.3.1.1 By Technology

6.3.2            Canada

                     6.3.2.1 By Technology

7... Europe Blue Hydrogen Market Analysis, Insights and Forecast, 2019-2030

7.1             Market Analysis, Insights and Forecast – By Technology

7.1.1            Steam Methane Reforming (SMR)

7.1.2            Gas Partial Oxidation (POX)

7.1.3            Auto Thermal Reforming (ATR)

7.2              Market Analysis, Insights and Forecast – By End User

7.2.1            Petroleum Refineries

7.2.2            Chemical Industry

7.2.3            Power Generation Facilities

7.3             Market Analysis, Insights and Forecast – By Country

7.3.1            Germany

                     7.3.1.1 By Technology

7.3.2            U.K.

                     7.3.2.1 By Technology

7.3.3            France

                     7.3.1.1 By Technology

7.3.4            Italy

                     7.3.4.1 By Technology

7.3.5            Spain

                     7.3.5.1 By Technology

7.3.6            Scandinavia

                     7.3.6.1 By Technology

7.3.7            Rest of Europe

                     7.3.7.1 By Technology

8... Asia Pacific Blue Hydrogen Market Analysis, Insights and Forecast, 2019-2030

8.1             Market Analysis, Insights and Forecast – By Technology

8.1.1            Steam Methane Reforming (SMR)

8.1.2            Gas Partial Oxidation (POX)

8.1.3            Auto Thermal Reforming (ATR)

8.2              Market Analysis, Insights and Forecast – By End User

8.2.1            Petroleum Refineries

8.2.2            Chemical Industry

8.2.3            Power Generation Facilities

8.3             Market Analysis, Insights and Forecast – By Country

8.3.1            China

                     8.3.1.1 By Technology

8.3.2            India

                     8.3.2.1 By Technology

8.3.3            Japan

                     8.3.1.1 By Technology

8.3.4            Australia

                     8.3.2.1 By Technology

8.3.5            Southeast Asia

                     8.3.1.1 By Technology

8.3.6            Rest of Asia Pacific

                     8.3.2.1 By Technology

9... Latin America Blue Hydrogen Market Analysis, Insights and Forecast, 2019-2030

9.1             Market Analysis, Insights and Forecast – By Technology

9.1.1            Steam Methane Reforming (SMR)

9.1.2            Gas Partial Oxidation (POX)

9.1.3            Auto Thermal Reforming (ATR)

9.2              Market Analysis, Insights and Forecast – By End User

9.2.1            Petroleum Refineries

9.2.2            Chemical Industry

9.2.3            Power Generation Facilities

9.3             Market Analysis, Insights and Forecast – By Country

9.3.1            Brazil

                     9.3.1.1 By Technology

9.3.2            Mexico

                     9.3.2.1 By Technology

9.3.3            Rest of Latin America

                     9.3.1.1 By Technology

10. Middle East & Africa Blue Hydrogen Market Analysis, Insights and Forecast, 2019-2030

10.1           Market Analysis, Insights and Forecast – By Technology

10.1.1         Steam Methane Reforming (SMR)

10.1.2         Gas Partial Oxidation (POX)

10.1.3         Auto Thermal Reforming (ATR)

10.2           Market Analysis, Insights and Forecast – By End User

10.2.1         Petroleum Refineries

10.2.2         Chemical Industry

10.2.3         Power Generation Facilities

10.3           Market Analysis, Insights and Forecast – By Country

10.3.1         GCC Countries

                     10.3.1.1 By Technology

10.3.2         South Africa

                     10.3.2.1 By Technology

10.3.3         Rest of Middle East & Africa

                     10.3.1.1 By Technology

11. Competitive Analysis

11.1           Global Market Share Analysis (2022)

11.2           Company Profiles (Overview, Products, SWOT analysis, Recent developments, strategies, financials (based on availability))

11.2.1         Safran SA

11.2.1.1 Overview

11.2.1.2 Products

11.2.1.3 SWOT analysis

11.2.1.4 Recent developments

11.2.1.5 strategies

11.2.1.6 financials (based on availability)

11.2.2           General Electric (GE)

11.2.2.1 Overview

11.2.2.2 Products

11.2.2.3 SWOT analysis

11.2.2.4 Recent developments

11.2.2.5 strategies

11.2.2.6 financials (based on availability)

11.2.3           United Technologies Corporation (UTC)

11.2.3.1 Overview

11.2.3.2 Products

11.2.3.3 SWOT analysis

11.2.3.4 Recent developments

11.2.3.5 strategies

11.2.3.6 financials (based on availability)

11.2.4           Rolls Royce holdings plc

11.2.4.1 Overview

11.2.4.2 Products

11.2.4.3 SWOT analysis

11.2.4.4 Recent developments

11.2.4.5 strategies

11.2.4.6 financials (based on availability)

11.2.5           Honeywell International Inc.

11.2.5.1 Overview

11.2.5.2 Products

11.2.5.3 SWOT analysis

11.2.5.4 Recent developments

11.2.5.5 strategies

11.2.5.6 financials (based on availability)

11.2.6           Northrop Grumman

11.2.6.1 Overview

11.2.6.2 Products

11.2.6.3 SWOT analysis

11.2.6.4 Recent developments

11.2.6.5 strategies

11.2.6.6 financials (based on availability)

11.2.7           Raytheon corporation (RTX)

11.2.7.1 Overview

11.2.7.2 Products

11.2.7.3 SWOT analysis

11.2.7.4 Recent developments

11.2.7.5 strategies

11.2.7.6 financials (based on availability)

11.2.8           GKN Aerospace

11.2.8.1 Overview

11.2.8.2 Products

11.2.8.3 SWOT analysis

11.2.8.4 Recent developments

11.2.8.3 strategies

11.2.8.6 financials (based on availability)

11.2.9           Linde PLC

11.2.9.1 Overview

11.2.9.2 Products

11.2.9.3 SWOT analysis

11.2.9.4 Recent developments

11.2.9.5 strategies

11.2.9.6 financials (based on availability)

11.2.10         Shell PLC

11.2.10.1 Overview

11.2.10.2 Products

11.2.10.3 SWOT analysis

11.2.10.4 Recent developments

11.2.10.5 strategies

11.2.10.6 financials (based on availability)

Global Blue hydrogen Market Segmentation

Blue hydrogen By Technology: Market Size & Forecast 2023-2030

  • Steam Methane Reforming (SMR)
  • Gas Partial Oxidation (POX)
  • Auto Thermal Reforming (ATR)

Blue hydrogen By End User: Market Size & Forecast 2023-2030

  • Petroleum Refineries
  • Chemical Industry
  • Power Generation Facilities

Blue hydrogen by Geography: Market Size & Forecast 2023-2030

  • North America (USA, Canada, Mexico)
  • Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
  • Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
  • South America (Brazil, Argentina, Columbia, Rest of South America)
  • Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Major Players:

  • ATCO
  • Siemens
  • Cummins
  • Equinor
  • Suncor Energy
  • Uniper
  • Saudi Aramco
  • Johnson Matthey

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