Green hydrogen, the cleanest form of hydrogen production, is set to revolutionise the energy market with its zero carbon dioxide emissions.
Currently, green hydrogen accounts for only 0.2 per cent of global hydrogen production.
However, forecasts by ABI Research, a global technology intelligence firm, predict that green hydrogen will constitute 27 per cent of total hydrogen production by 2030 and 55 per cent by 2035.
This growth is expected to drive the market value from $10 billion today to $180 billion by 2035, significantly displacing grey hydrogen as the market leader.
Daniel Burge, Smart Energy Analyst at ABI Research, highlighted the significant transformation underway in the hydrogen market.
“We’re witnessing the start of a huge upheaval in what is already an established market,” Burge stated.
Despite initial scepticism regarding green hydrogen’s role in energy transition, substantial investments are being made globally, particularly in Asia-Pacific, to expand electrolysis capacity.
Heavy industries such as petrochemical refineries and ammonia producers are investing in low-emission hydrogen to decarbonise operations, reduce costs, and capture green premiums.
Industries unable to electrify view green hydrogen as a promising path towards sustainability.
Net-zero regulations are influencing hydrogen production strategies worldwide.
Europe’s upcoming RED II rules will mandate 42.5 per cent low-emission hydrogen by 2030.
Simultaneously, China and India are scaling up production efforts to decarbonise and reduce costs while capturing significant market share.
As of 2024, China accounted for approximately 30 per cent of global hydrogen production, with green hydrogen output projected to grow at a compound annual growth rate of 38 per cent through 2035.
The commitment to clean hydrogen has dispelled doubts about its viability as a foundation for decarbonising heavy industry.
For major supply and demand regions, the decision to invest in green hydrogen has been made.
Burge advises industries such as petrochemical, chemical, steel, shipping, and aviation to closely monitor the transition from grey to green hydrogen to capitalise on emerging opportunities.
Several companies are at the forefront of green hydrogen and electrolyser production.
Notable players include Adani Energy, Linde, ITM Power, Sinopec, and Plug Power.
These companies are pivotal in driving the technological advancements necessary for scaling up green hydrogen production.
The findings from ABI Research’s Hydrogen Market Data report underscore the transformative potential of green hydrogen in achieving net-zero emissions targets globally.
As industries transition towards cleaner energy solutions, green hydrogen stands out as a critical component in reducing carbon footprints and fostering sustainable growth across sectors.
