Blue Hydrogen Market size is set to surpass USD 4.5 billion by 2030, according to a new research report by Global Market Insights Inc.
A steady rise in focus toward low-carbon energy alternatives, driven by the growing concerns associated with the impact of excessive fossil fuel consumption on the environment, will favor the adoption of blue hydrogen. Businesses such as chemical companies, refineries, and even fertilizer manufacturers are shifting to blue hydrogen due to its relatively lower environmental impact. Emerging economies are aggressively implementing sustainability targets and carbon footprint goals. This will create significant opportunities for large-scale production of blue hydrogen to cater to the expanding industrial sector.
Decarbonization efforts to accelerate blue hydrogen production using partial oxidation
The market share from partial oxidation technology segment is likely to grow at 16% CAGR during 2022-2030. Partial oxidation has emerged as an ideal method to produce hydrogen in recent years owing to its sustainable nature. The process is well suited for heavy hydrocarbons and decarbonizing different applications as it ensures minimal methane slip and zero steam requirements. Ongoing development of efficient technologies to produce blue hydrogen, particularly to comply with the stringent government norms, will foster the segment growth.
Rising demand for feedstock in chemical factories to fuel blue hydrogen demand
The chemical application segment is anticipated to witness substantial growth during the forecast timeframe, on account of the rapid adoption of alternative fuels in the sector. Numerous governments are investing in the development of effective carbon capture technologies. As a result, hydrogen penetration in chemical manufacturing processes, such as in the production of ammonia and methanol, has picked up the pace. The rising number of facilities ramping up production of low-carbon fuels including blue diesel will propel the demand for hydrogen as feedstock.
Favorable investments to augment Europe blue hydrogen industry growth
Europe blue hydrogen market is expected to dominate revenue share through 2030. Factors like continuous developments in sustainable technology, the presence of favorable government policies, and funding programs encouraging decarbonization projects across the region will impel the industry trends.
Government bodies in the EU are also offering schemes and incentives to boost the hydrogen economy and meet the growing energy demands of businesses. For instance, in July 2022, the European Commission (EC) approved an extensive hydrogen initiative that is backed by 15 EU countries and 35 firms. The initiative will support EU member states in their endeavor to implement 41 projects for the establishment of a hydrogen hub which will help the region achieve its decarbonization targets. It will focus on the development of next-gen hydrogen technologies for the production, storage, transportation, and distribution of hydrogen.