Green hydrogen production is rapidly accelerating, driven by demand from hard-to-abate heavy industries, surpassing past conservative predictions
LONDON, Nov. 14, 2024 /PRNewswire/ — Green Hydrogen (H2) is the cleanest form of hydrogen production. It’s produced by renewable energy with zero CO2 emissions. Though only 0.2% of hydrogen is produced today, green H2 will account for 27% of total hydrogen production by 2030 – and 55% by 2035. ABI Research, a global technology intelligence firm, forecasts that this explosive growth will drive the market for green H2 from US$10 billion today to US$180 billion by 2035, significantly displacing grey hydrogen as the primary driver of the market.
“We’re witnessing the start of a huge upheaval in what is already an established market,” says Daniel Burge, Smart Energy Analyst at ABI Research. “Despite previously widespread doubt that green hydrogen would play a role in the energy transition, we’re seeing committed investment – a global trend spearheaded by Asia-Pacific – in massive electrolysis productive capacity. Heavy industries, like petrochemical refineries and ammonia producers, are investing in low-emission hydrogen to decarbonize, reduce operational costs, and capture green premiums. Meanwhile, industries unable to electrify recognize green hydrogen as a promising sustainability path.”
Net-zero regulations are impacting hydrogen production. Europe’s upcoming RED II rules will require 42.5% low-emission hydrogen by 2030, while China and India are also scaling production to decarbonize and reduce costs, aiming to capture significant market share. In 2024, China accounted for about 30% of global hydrogen production, with green H2 output expected to grow at a 38% CAGR through 2035, likely increasing its lead.
This increasing commitment to clean hydrogen has dispelled the uncertainty around whether it is a suitable foundation for the decarbonization of heavy industry – for the largest regions in terms of supply and demand, that decision is clearly already made. “To capitalize on the opportunities inherent of the hydrogen market’s prospective transformation and growth, players in petrochemical, chemical, steel, shipping, and aviation industries need to watch closely to see where, when, and how green hydrogen displaces, outpaces, and outgrows grey hydrogen and take its place as a fuel of the future,” Burge concludes.
Green hydrogen and electrolyser producers to watch include Adani Energy, Linde, ITM Power, Sinopec, and Plug Power.
These findings are from ABI Research’s Hydrogen Market Data report. This report is part of the company’s Smart Energy for Enterprises & Industries research service, which includes research, data, and ABI Insights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight into where opportunities lie.
About ABI Research
ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
ABI Research是一家全球性的技术情报公司，拥有得天独厚的优势，充当终端市场公司和技术解决方案提供商之间的桥梁，通过提供独家研究和专业性指导，推动成功的技术实施和提供经证明可吸引和留住客户的战略，无缝连接这两大主体。
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SOURCE ABI Research
