The global [FURL=https://shorturl.at/eNy17]green hydrogen market[/FURL] is rapidly emerging as a key player in the global energy transition. In 2023, the market size reached 3.28 million tonnes, and it is expected to grow at an astonishing compound annual growth rate (CAGR) of 65.4% from 2024 to 2032, reaching a projected 304.52 million tonnes by 2032.What is Green Hydrogen?
Green hydrogen is produced through water electrolysis, powered by renewable energy sources like solar and wind. Unlike conventional hydrogen, which is typically produced from fossil fuels, green hydrogen offers a carbon-neutral solution, helping mitigate climate change by reducing greenhouse gas emissions. As a versatile energy carrier, green hydrogen can be used across sectors such as transportation, industrial processes, and grid energy storage.
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Market Drivers and Trends
Technological Advancements: Proton Exchange Membrane (PEM) electrolysers are playing a significant role in the growth of the green hydrogen market, with a projected CAGR of 73.2% from 2024 to 2032. PEM electrolysers offer faster response times and can operate efficiently at both low temperatures and high pressures, making them ideal for various applications. The rise in availability and technological improvements of PEM systems is pushing the market forward.
Decarbonization of Transportation: One of the leading sectors driving demand for green hydrogen is transportation. Fuel cell electric vehicles (FCEVs) powered by green hydrogen are emerging as eco-friendly alternatives to traditional combustion engines. Governments worldwide are incentivizing the adoption of such vehicles. For example, India launched the Toyota Mirai, a hydrogen-powered FCEV, to promote cleaner transportation.
Industrial Applications: Green hydrogen is also widely used in industries such as petrochemicals, ammonia production, and steel manufacturing. Its eco-friendly nature makes it a preferred option for decarbonizing industrial processes. Industries are increasingly integrating green hydrogen to reduce their carbon footprints, further accelerating market expansion.
Government Initiatives and Investments: Countries around the world are introducing incentives and policies to promote green hydrogen. For instance, India’s government has launched production-linked incentive schemes to encourage domestic manufacturing of electrolysers, while Germany and other European nations are investing heavily in hydrogen infrastructure.
Recent Developments in the Green Hydrogen Market
The green hydrogen sector has seen several exciting developments:
Linde's PEM Electrolyser in Niagara Falls: In September 2023, Linde announced a 35 MW PEM electrolyser project to produce green hydrogen in Niagara Falls, USA, using hydroelectric power. This development will boost green liquid hydrogen production to meet rising demand.
Reliance Industries in India: In June 2023, Reliance Industries Ltd. revealed plans to explore cost-effective green hydrogen technologies and bid for government incentives. The company aims to produce green hydrogen at $1 per kilogram by 2030, positioning India as a global leader in hydrogen production.
Regional Insights
The Asia Pacific region is expected to lead the market with a CAGR of 78.5% from 2024 to 2032, driven by growing investments in green hydrogen infrastructure in countries like India and China. Europe follows closely, with Germany's green hydrogen market.