Growth Opportunities in the Hydrogen Market for the Global Power Sector

Growth Opportunities in the Hydrogen Market for the Global Power Sector

Continued concerns over global warming and increasing carbon emissions have forced governments to reduce their dependency on fossil fuels based economy and move towards a low-carbon economy. Our sustainable future depends on the development of these low-carbon and alternate energy sources that are renewable and environment friendly.

In recent years, there has been a growing interest in hydrogen as a low- or zero-carbon energy source, and many governments have started acknowledging the fact that a hydrogen-based economy could be the answer to our growing concerns over increasing carbon emissions, energy security, and climate change. Hydrogen could be used as a decarbonised fuel across the mobility, maritime and aviation sectors, and as a decarbonised energy storage system (ESS) across the power generation sector.

Though the promises associated with hydrogen—as an important tool in catalysing the transition towards sustainable energy economy—are huge, the current application of hydrogen is mainly in industrial sector. Much of the projects across power generation, transport, and other segments are still in their pilot stages and technological and cost breakthroughs are needed for increased adoption. The global demand for hydrogen and its emerging applications is expected to increase tenfold over the next 20 years, creating the need for a huge infrastructure for producing and delivering the fuel.

Almost all the hydrogen (grey hydrogen) used today is produced from fossil fuels with CO2 released into the atmosphere. Grey hydrogen can be used in the short to medium term to meet the growing hydrogen demand. However, in the long term, this method is unsustainable and requires alternative measures. Only hydrogen produced through carbon capture & storage (CCS) (blue hydrogen) and through RES (green hydrogen) can be considered as a sustainable option if we are moving towards a hydrogen economy.

For hydrogen economy to become a reality, decisive government actions are required in 4 areas:
• Support research and development (R&D) activities related to technologies involved in production, storage, transport and utilisation of
hydrogen.
• Provide incentives to companies for developing hydrogen infrastructure and carbon capture utilisation & storage (CCUS) infrastructure.
• Address socio-economic barriers inhibiting the growth of the technology and mandate policies towards decarbonisation.
• Develop a roadmap towards hydrogen economy.

There is still a long road to travel, and it would take 10-20 years before the hydrogen economy becomes mainstream across the global power sector and other segments.

The primary aim of this research study is to analyse the current and future market potential of hydrogen as a potential energy carrier driving the transition towards a sustainable energy future. The study also identifies growth opportunities for the hydrogen market in the global power sector, highlights trends in some of the key countries, and also lists companies active in this space.