In recent years, the global discourse around sustainable energy solutions has gained momentum, and at the forefront of this conversation is the rise of green hydrogen. As the world seeks cleaner alternatives to traditional fossil fuels, green hydrogen has emerged as a frontrunner in the quest for decarbonization.
Green hydrogen is a form of pure hydrogen produced using renewable energy sources like wind or solar power. It is created through electrolysis, where water is split into hydrogen and oxygen using renewable electricity. This process emits significantly fewer greenhouse gases compared to grey hydrogen, which is derived from fossil fuels without carbon capture. Green hydrogen holds potential as a low-carbon fuel alternative to fossil hydrocarbons in various applications.
In 2021, the global market value was approximately $2.14 billion. According to a recent report from MarketsandMarkets, the market is projected to witness substantial growth from $1.1 billion in 2023 to $30.6 billion by 2030, at a CAGR of 61.1% during the forecasted period. This surge represents a monumental shift toward sustainable energy practices, with green hydrogen projected to dominate the global supply mix by 2050, accounting for 50-65% across various scenarios.
Several factors are driving the exponential growth of the green hydrogen market. One significant factor is the advancement of technology, particularly in alkaline electrolysis, which facilitates the production from renewable sources. The process involves an electrolyzer splitting water into hydrogen and oxygen within an alkaline solution, typically using potassium hydroxide. The electrolyzer consists of two electrodes, an anode, and a cathode, where water molecules lose electrons to produce oxygen and gain electrons to form hydrogen. This process integrates renewable electricity, making it environmentally friendly by avoiding greenhouse gas emissions.
The increasing reliance on renewable energy sources, particularly wind power, underscores the growing interdependence of various sustainable energy technologies. In 2023, wind energy played a critical role, contributing nearly 49%, among other renewable sources in the green hydrogen market by value. Offshore plants offer more consistent output throughout the year compared to onshore ones.
The mobility sector emerges as the dominant segment in the green hydrogen market, accounting for approximately 58% of the market value in 2022. Vehicles powered by green hydrogen, including trains, mining vehicles, lorries, aircraft, maritime vessels, and buses, are increasingly becoming the preferred choice due to their environmental benefits. Additionally, maritime shipping companies are turning to green ammonia as a means to reduce carbon emissions. Green ammonia, which can be produced from green hydrogen, offers a viable alternative for both fuel cells and internal combustion engines.
Europe is expected to lead the way in the green hydrogen market. This is largely driven by the European Union's commitment to carbon neutrality by 2050. Key players propelling the market are Linde plc, Guangdong Synergy Hydrogen Power Technology, Siemens Energy AG, H&R Olwerke Schindler, Cummins, Enbridge Gas, Wind to Gas Energy GmbH & Co. KG, Toshiba Energy Systems & Solutions Corporation, and Nel ASA.
Projections show increasing growth potential, supported by ongoing technological advancements and escalating demand, particularly in sectors such as transportation. Green hydrogen stands out as a promising solution due to its ability to harness renewable resources for production, offering a sustainable alternative to traditional fossil fuels.
