The hydrogen industry is expected to witness untapped opportunities in the coming years. Hydrogen is regarded as the lightest and the most abundant chemical element that found applications across various industrial verticals, including Petroleum Refinery, Heat Treatment, power generation, transportation, renewable energy, hydrogen fuel cell, etc.
Rising environmental concerns are forcing companies and governments to make efforts in promoting the use of clean energy. According to Astute Analytica, the global Hydrogen Market is forecast to record significant growth in the coming years. The market will register a CAGR of 6.6% during the forecast period from 2022 to 2027.
Factors Driving the Growth of the Hydrogen Industry
Efforts made by Companies
Hydrogen fuel cells are expected to gain substantial traction, owing to the potential efforts made by the companies. Zero carbon emission has become a major aim of most of the industry players and it is expected to be a significant advantage for the overall hydrogen market.
In 2021, Toyota Motor Corporation revealed its plan to test hydrogen engines in competitive driving. The business wants to employ the technology in commercial vehicles after successful testing. In the same year, Hyundai and Doosan Fuel Cell inked a pact with the aim to evaluate the potential of hydrogen-powered fuel cells as a distributed energy source.
Woodside Petroleum also disclosed its plan to spend nearly $1 billion on the construction of the plant for the generation of hydrogen and ammonia. Meanwhile, the plant construction is scheduled to begin in 2024.
Volvo also introduced its hydrogen-powered trucks recently. These trucks emit water vapor. Apart from that, they have the potential to work on a 600-mile range. The firm has begun the tests phase of long-haul trucks powered by hydrogen fuel cells. According to the information, the trucks are capable of towing 65 tons and can travel around 1000 km (620 miles). Furthermore, these trucks can fuel up within 15 minutes. According to estimations by Astute Analytica, the global fuel cell market will also record a tremendous compound annual growth rate (CAGR) of 27.4% during the forecast period from 2022 to 2028. Therefore, it will be opportunistic for the hydrogen sector as various automotive manufacturers are focusing on investing in hydrogen fuel cell technology in the coming years.
Hydroplane Ltd. also announced the use of hydrogen fuel cell technology for flight decarbonization. The firm aims to ace this race of adopting green energy and achieving carbon neutrality.
Hydrogen is beginning to draw a lot of interest and investment on a worldwide scale, which is considered to be a perfect solution to combat the risk associated with growing pollution. There is a significant tendency in research and development aimed at enhancing hydrogen production and technology with less expensive options.
Earlier, Saudi Arabia announced that it would use one of its US$110 billion gas projects to make blue hydrogen. These efforts are taken to develop a more efficient and eco-friendlier source of energy.
The World Oil Outlook 2021 states that government leaders are more aware of the need to move quickly to address climate change, which has recently led to new policy intentions to achieve net-zero emissions. Hydrogen has become a key solution in the effort to minimize emissions and create a net-zero energy system. With its versatility and lack of carbon, hydrogen has the potential to drastically cut emissions in the transportation, industrial, and power sectors. Thus, it has a potential scope across various sectors. The downstream industry has seen significant investments made globally for the expansion of the refining capabilities in the current facilities or setting up new refineries due to the increased demand for refined goods and by-products. All of these factors will bolster the growth of the hydrogen sector during the study period.