Green hydrogen is used in various applications, such as oil and gas, industrial feedstock, mobility, and power generation, where it acts as an energy carrier. However, its current consumption is limited. Green hydrogen is mainly used for crude oil refining and the synthesis of ammonia and methanol, which account for around three-fourths of the total demand.

The global green hydrogen market was valued at $227.7 million in 2021 and is projected to reach $108.64 billion by 2031, registering a CAGR of 68.9% between 2022 and 2031 in terms of value.

Green hydrogen is a hydrogen-produced fuel obtained from the electrolysis of water with electricity generated by renewable energy sources. Hydrogen is one of the prominent energy carriers that can be used in different applications, such as oil and gas, industrial feedstock, mobility, and power generation. Various countries and regions, including Europe, the U.K., China, South Korea, Japan, Canada, South Africa, and the U.S., have adopted net zero objectives. These developments of national and international "net zero" objectives has been one of the most noteworthy characteristics of climate policy in recent years. Renewables and batteries can help to decarbonize power generation and the automobile industry. Heating may also be decarbonized in some areas by using heat pumps driven by renewable energy.

The oil and gas industry is expected to be one of the prominent end-users of green hydrogen, in which different refining processes, such as hydrocracking, hydroisomerization, hydrodealkylation, and hydrodesulfurization, are included. The essential drivers behind the adoption of green hydrogen in the oil and gas industry are aims to reduce sulfur dioxide emissions and removal of sulfur to prevent catalyst poisoning. The demand for green hydrogen in the oil and gas end user industry was mainly attributed to the growing need to reduce sulfur dioxide emissions and removal of sulfur.

The growing use of green hydrogen in the production of ammonia can power household cleaning and fertilize plants. Moreover, it could become an important zero-emission energy carrier for moving clean energy around the world economically.

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The increasing demand for green hydrogen in various end-user industries, such as oil and gas, industrial feedstock, mobility, and power generation, has led to a wide acceptance of green hydrogen in their production over time. This has led to a significant rise in the demand for green hydrogen in the region. Additionally, concerted efforts by both the government and the end-user have played a pivotal role in making this region the frontrunner in the field of green hydrogen.

The Green Hydrogen market is essential due to its role in decarbonizing energy, enabling energy storage, revolutionizing industries, advancing clean transportation, and supporting global carbon reduction goals. It offers a renewable energy storage solution, cleaner industrial processes, emission-free transportation, and economic growth, while fostering international collaboration and enhancing energy security, driving us towards a sustainable and low-carbon future.

Key Strategies and Developments by Leading Companies

Companies active in the green hydrogen market have adopted multiple business and corporate strategies over the past years to maintain/improve their market positioning. While the industry has witnessed a mix of several strategies adopted by companies to evolve their technologies as well as strengthen their market presence, product-centric developments through patents and product developments have been the key features in the market.

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Recent Developments in Green Hydrogen Market

• In August 2022, Linde inaugurated the world's first hydrogen refuelling system for passenger trains in Bremervorde, Germany. The company’s hydrogen refuelling system has been designed and constructed with the ability to integrate future on-site green hydrogen generation.
• In March 2022, Air Liquide received support from the French State, subject to final validation by the European Commission, to launch its Air Liquide Normand’Hy large-scale renewable hydrogen production project. This electrolyzer of an initial 200 MW capacity, which should notably provide renewable hydrogen to TotalEnergies’ Normandy refinery and will use Siemens Energy technology.
• In November 2022, Air Products and Associated British Ports (ABP) partnered to bring the first large-scale, green hydrogen production facility to the U.K. The facility would import green ammonia from production locations operated by Air Products and its partners around the world. This would be used to produce green hydrogen, which would decarbonize hard-to-abate sectors such as transport and industry.