Blue Hydrogen Market

Blue Hydrogen Market Size

The global blue hydrogen market was valued at USD 2.3 billion in 2024 and is estimated to grow at a CAGR of 10.4% from 2025 to 2034. Greater emphasis on energy security and diversification of the supply sources of hydrogen is likely to influence the production of blue hydrogen. The technology allows large-scale hydrogen production with lower carbon content while utilizing existing natural gas plants.

Increasing investments in large-scale low carbon hydrogen infrastructure by leading companies are expected to promote market growth. In January 2024, ExxonMobil revealed Baytown, Texas, plans to produce up to 1 billion cubic feet of hydrogen per day, with more than 98% of the CO₂ emissions associated with it being stored underground. In addition, such investments are likely to drive the commercial usage of blue hydrogen technologies globally.

Growing global demand for low carbon alternatives, along with rising industrial decarbonization strategies, is expected to drive the application of blue hydrogen. The application of carbon capture and storage technology for the production of blue hydrogen will be aligned with emissions reduction goals in refining, ammonia, and steel industries. Additionally, the scalability of blue hydrogen infrastructure is poised to support long-term industry expansion.

Growing global partnerships in the blue hydrogen industry are anticipated to enhance market growth. In August 2024, Shell hired Wood for the pre-FEED of Oman's Blue Horizons project, which includes designing a blue hydrogen and ammonia facility, a 200 km pipeline, and CO₂ injection hubs. The project seeks to deliver low carbon fuels to regional and global markets. Additionally, such cross border investments will contribute to the industry expansion.

Rising government mandates for clean energy transition, combined with abundant natural gas feedstock, are expected to stimulate technology adoption. Leveraging existing infrastructure to supply low carbon hydrogen at scale provides an economically viable decarbonization pathway for sectors in which it is difficult to reduce emissions. Furthermore, growing regulatory support for carbon abatement technologies will accelerate the adoption of blue hydrogen products across industries.

Blue Hydrogen Market Trends

• Strategic alliances between large energy companies and technology players are likely to impact blue hydrogen adoption. In June 2024, Air Liquide signed up to provide ExxonMobil's projected Baytown plant with oxygen and nitrogen to produce up to 930,000 tonnes of blue hydrogen and more than 1 million tonnes of ammonia per annum. Moreover, such large-scale collaborations are anticipated to influence business statistics.
  
• Diversification and energy resiliency patterns in the national energy policy will augment the adoption of blue hydrogen production. Countries are increasingly adopting blue hydrogen as a pillar of support to their energy mix in a bid to mitigate reliance on imported fossil fuels and improve supply security. This strategic realignment is set to push investments into local blue hydrogen production infrastructure, thus supplementing long-term market growth.
  
• The growing expansion of the pipelines of blue hydrogen projects worldwide at a high pace is expected to drive industry growth. As of December 2023, the Hydrogen Council reported a growth of 35% of stated hydrogen projects since January 2023, at over 1,400 projects and total investments of over USD 570 billion through 2030. This surge in project announcements indicates a strong momentum in the blue hydrogen sector, thereby augmenting market expansion.
  
• Supportive regulatory frameworks and emission reduction mandates will complement the business expansion. Governments are implementing long-term hydrogen strategies, production targets, and financial incentives to encourage large-scale adoption. These policy actions are expected to accelerate the energy transition and support net-zero targets by facilitating the development and global scaling of clean hydrogen production technologies.
  

Blue Hydrogen Market Analysis

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• Based on application, the market is segmented into petroleum refinery, chemical, and others. The blue hydrogen industry was valued at USD 1.82 billion, USD 2.03 billion, and USD 2.37 billion in 2022, 2023, and 2024, respectively.
  
• The petroleum refinery market is expected to grow at 8.1% CAGR during 2025-2034, driven by increasing demand for low carbon hydrogen to decarbonize refining processes. In February 2024, EET Fuels revealed plans to build the UK's first blue hydrogen plant at the Stanlow refinery at an estimated USD 1.26 billion investment. Moreover, regulatory imperatives to limit emissions from downstream activities will increase segment penetration further.
  
• The chemical segment is expected to grow at a CAGR of 10.1% between 2025 to 2034 due to the increasing adoption of blue hydrogen as a feedstock in ammonia production. In February 2023, Linde announced a USD 1.8 billion investment to supply clean hydrogen and nitrogen to OCI’s 1.1 million ton per annum blue ammonia plant in Beaumont, Texas. Moreover, the rising requirement for cleaner feedstocks in fertilizer and industrial use will complement product adoption.
  
• The others segment is projected to be worth over USD 1.1 billion in 2034, driven by the increasing application of blue hydrogen across sectors like power production, steel making, and blending with fuel for transport applications. Increased emphasis on grid decarbonization and efforts to reduce carbon intensity in heavy industries are expected to influence market expansion. Additionally, expanding industrial diversification of low carbon hydrogen will augment segmental penetration across multiple applications.
  

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• Based on technology, the blue hydrogen market is segmented into SMR, ATR, and partial oxidation. The SMR segment held 74.3% market share in 2024, due to its developed infrastructure, cost-effective aspect, and higher hydrogen yield efficiency. Increased investment in integrating carbon capture and storage with SMR plants will support the industry expansion. Additionally, extensive deployment throughout refineries and chemical industries is anticipated to promote technology adoption.
  
• The ATR segment is anticipated to expand at a CAGR of 24.8% from 2025 to 2034, driven by its strong compatibility with carbon capture technology and its effectiveness in producing high-purity hydrogen. In August 2024, Linde unveiled a USD 2 billion investment in an Alberta ATR-based hydrogen project, to cover over 2 million tonnes of CO₂ emissions annually within Dow's Path2Zero program. In addition, ATR's suitability for bulk decarbonized hydrogen is expected to drive its market penetration.
  
• The partial oxidation segment is projected to be worth over USD 1.9 billion by 2034, owing to its compatibility with heavy hydrocarbons and effortless integration with current industrial processes. In February 2024, Air Liquide completed a USD 43.6 million investment in expanding its industrial complex in Stade, Germany, including its partial oxidation unit. Furthermore, the mixed feedstock capability of partial oxidation is expected to further contribute to its utilization in blue hydrogen production.
  

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• The U.S. blue hydrogen market was valued at USD 1 billion, USD 1.01 billion, and USD 1.02 billion in 2022, 2023, and 2024, respectively. The North American industry held a market share of 54.4% in 2024.
  
• Large-scale global partnerships and development of hydrogen-ammonia export routes will propel the U.S. market. In September 2024, Mitsubishi Corporation and ExxonMobil entered into a framework agreement to become part of a Baytown, Texas project that will produce 1 Bcf/day of hydrogen and more than 1 million tons of low-carbon ammonia per year with 98% CO₂ removal. Additionally, such projects will further enhance transpacific low-carbon fuel trade, fueling regional market growth.
  
• The European market will expand at 19.4% CAGR by 2034, due to tight emissions standards, strong government regulation, and increasing clean energy infrastructure investments. In March 2025, the UK's EET Hydrogen HPP2 project selected KBR's H2KPlus technology, designed to produce 230,000 tons of blue hydrogen annually. Additionally, the EU Green Deal promotes green energy adoption by establishing emissions reduction goals, offering funding, and supporting blue hydrogen innovation, thereby, driving market growth.
  
• The Asia Pacific industry is estimated to reach over USD 1.9 billion by 2034. State-driven hydrogen projects and increasing refinery capacity are projected to influence the market landscape. Nations such as India, Japan, and China are investing in blue hydrogen as part of long term energy transition strategies, aided by infrastructure development and carbon capture incentives, driving the adoption of clean fuel in major industrial segments.
  

Blue Hydrogen Market Share

• The top 5 players, including Air Products and Chemicals, Linde, Shell, Exxon Mobil, and Equinor, hold about 40.5% market share in the blue hydrogen industry. They aim to grow blue hydrogen production through large-scale production plants, investing in new carbon capture technologies to minimize emissions, and developing integrated hydrogen supply chains. Strategic partnerships and mergers assist them in establishing their presence across the industrial, transport, and energy sectors globally.
  
• Leading companies focus on sustainability by incorporating blue hydrogen plans into global decarbonization. They invest in enhancing the efficiency of carbon capture and storage (CCS) technologies and expanding hydrogen distribution infrastructure to strengthen market penetration. Advances in storage and transport technologies also enable their competitive advantage in the marketplace.
  
• Air Products & Chemicals is leading the U.S. blue hydrogen market with its USD 4.5 billion Louisiana Clean Energy Complex, which will make more than 750 million standard cubic feet of blue hydrogen per day and capture over 5 million tons of CO₂ each year for permanent sequestration. In 2024, Air Products generated revenue of USD 12.1 billion, reflecting its strong market position.
  
• Air Liquide is pioneering the blue hydrogen sector through strategic investments and partnerships. In 2024, it reported a revenue of USD 29.4 billion, demonstrating its scale and capacity for innovation. It was awarded a grant of USD 120 million from the European Innovation Fund to develop the ENHANCE project in Antwerp, where it would produce and supply low-carbon and renewable hydrogen from ammonia in the cause of global decarbonization.
  

Blue Hydrogen Market Companies

Eminent players operating in the blue hydrogen industry are:

• Air Products
• Air Liquide
• Bechtel Corporation
• BP
• Eni
• Exxon Mobil Corporation
• Equinor
• John Wood Group
• Johnson Matthey
• MaireTecnimont
• Saipem
• SK E&S
• Shell
• Technip Energies
• TOPSOE
• thyssenkrupp Industrial Solutions
• Woodside
  

Blue Hydrogen Industry News

• In March 2025, Aramco completed its acquisition of a 50% stake in Air Products Qudra-owned Blue Hydrogen Industrial Gases Company (BHIG) in Jubail, Saudi Arabia. The deal is intended to produce low-carbon blue hydrogen through carbon capture and storage to power a hydrogen network in the Eastern Province to supply refining and petrochemical industries.
  
• In November 2023, Air Products and Chemicals announced that it would construct and run a next-generation carbon capture and treatment of CO2 facility at its current hydrogen production plant in Rotterdam, Netherlands. The plant operations are expected to begin in 2026, with blue hydrogen production to be delivered to ExxonMobil’s Rotterdam refinery and customers through its pipeline network system.
  
• In December 2023, SK E&S signed a global MoU in COP28 to construct South Korea's largest low-carbon hydrogen plant with its local government and global partners. Its objective is to mass-produce low-carbon hydrogen and develop a domestic hydrogen ecosystem. The company aims to significantly support global carbon neutrality efforts while strategically strengthening its position in the international market.
  

The blue hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion & MT)” from 2021 to 2034, for the following segments:

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Market, By Application

• Petroleum refinery 
• Chemical
• Others

Market, By Technology

• SMR
• ATR
• Partial oxidation

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • Oman
  • UAE
  • Kuwait
  • Qatar
  • South Africa
• Latin America