Since eras, hydrogen and energy have been paired in various applications from – powering the first internal combustion engines before 200 years to becoming a vital part of the existing refining industry. Hydrogen is a light, energy-dense, storable gas that gives out no direct discharges of contaminants or greenhouse gases. Nonetheless, for hydrogen to make a substantial contribution to the switch toward clean energy, it must be implemented in sectors such as transportation, constructions, and power generation. As per Research Dive analysts, the transportation sub-segment of the hydrogen generation market is projected to have a dominant market share and garner $132,592.9 million by 2028.
Hydrogen can be obtained from fossil fuels, biomass, water, or from a combination of both. Presently, natural gas is the prime source of hydrogen generation, accounting for about 3 quarters of the yearly global dedicated hydrogen production of about 70 million tonnes. Canada is one of the leading producers of hydrogen across the globe. Canadian organisations have invented several technologies to generate hydrogen cleanly and cost-effectively using biomass, methanol, fossil fuels, and renewable energy sources including wind, solar, hydroelectric or from by-product waste hydrogen captured from industries.
The Demand for Hydrogen Surges
Providing hydrogen to industries is now a foremost business worldwide as the demand for hydrogen has surged in the last few decades. Also, it is expected that its demand will endure to increase – almost wholly generated from fossil fuels, with 6% of worldwide natural gas and 2% of worldwide coal going in the hydrogen making.
Currently, there are several nations having polices that unswervingly support investments in hydrogen technologies, which is fueling the growth of the hydrogen generation market. There are nearly 50 targets, obligations, and policy incentives in position, currently, that directly support hydrogen, with the majority dedicated on transportation.
Recent Trends in the Hydrogen Generation Market
Since the last few years, worldwide spending on hydrogen energy development, research, and demonstration by government bodies has intensified across the globe.
As per a report by Research Dive, the global hydrogen generation market is expected to garner $212,877.4 million by 2028. Market players are significantly investing in innovative project launches and research for enhancing the production of hydrogen.
Some of the leading players of the hydrogen generation market are Air Liquide S.A., Cummins Inc., Linde plc, Air Products and Chemicals, Inc., Iwatani Corporation, Engie SA, ITM Power plc, Messer Group, Showa Denko, and Uniper SE, and others. These players are focused on developing strategies such as partnerships, novel developments, mergers and acquisitions, and collaborations to achieve a leading position in the global market. For instance,
- In August 2021, Indian researchers have come up with a novel technique of generating hydrogen from water by making use of magnets to increase its production 3 times and lower the energy required, thus paving the way toward environment-friendly hydrogen fuel at an affordable price.
- In November 2021, Indian Oil Corporation Limited (IOCL), a state-owned oil and gas company in India, introduced a tender to install green hydrogen generation units at its refineries in Uttar Pradesh, Mathura, Panipat, and Haryana.
- In March 2020, a Japanese consortium introduced largest-class hydrogen production unit of the world named, Fukushima Hydrogen Energy Research Field (FH2R). This new unit is a renewable energy-powered 10-MW class hydrogen production unit.
COVID-19 Impact on the Hydrogen Generation Market
The sudden onset of the coronavirus pandemic has adversely impacted the global hydrogen generation market. This is chiefly due to a decrease in investments in new energy generation industries, which has eventually slackened the growth of clean energy technologies. Moreover, lower capital expenditure, disruptions in supply chain, and economic recession due to pandemic have undesirably affected the hydrogen generation market’s growth.
However, numerous announcements regarding new hydrogen generation projects in the coming years is estimated to recuperate the market from the losses post-pandemic, and also help the world to resume the clean energy initiatives.
The Way Ahead for Hydrogen Generation Market
The future of hydrogen generation market is extremely bright as hydrogen holds the potential to be used in numerous application areas; which can help attain a future of secure, clean, and reasonably priced energy. To sum-up, the industrial world should emphasize on making hydrogen as a vital part of the clean and secure energy future.