Green Hydrogen Market Trends

Growth Drivers

• Growing Levels of Global Warming– Green hydrogen emits no greenhouse gases but can provide high-temperature heat to drive sizable industrial activities. Therefore, it can be a great alternative to other energy sources for reducing the levels of global warming. The average world temperature is expected to rise by about 1.15 degrees Celsius in the eight warmest years which are anticipated to be those from 2015 to 2022. Moreover, in 2022, the atmospheric concentrations of the three primary greenhouse gases—carbon dioxide, methane, and nitrous oxide have grown.
• Increasing Demand for Hydrogen– Green hydrogen is hydrogen created by using renewable electricity to separate water into hydrogen and oxygen. Therefore, higher production of hydrogen is likely to boost the production of green hydrogen In 2021, the world's demand for hydrogen increased by 5% to 94 Mt, primarily due to increased activity in the chemical and refining industries. The historical peak of 91 Mt was surpassed by the demand for hydrogen in 2019.
• Growing Investment in Hydrogen Energy – Higher spending on the development of hydrogen energy is likely to create more opportunities for the green hydrogen market. With a 35% increase over 2020, public financing for hydrogen R&D experienced its biggest yearly growth in 2021. Around 5% of the entire R&D expenditure for sustainable energy technologies was allocated to hydrogen technologies.
• Rising Capacity of Electrolyzer– High capacity of electrolyzers is expected to boost the manufacturing of green hydrogen. Electrolysers, which are required to manufacture low-emission hydrogen from renewable power, are predicted to see a six-fold rise in worldwide manufacturing capacity by 2025.
• Rising Need for Clean Energy – The only byproduct of using green hydrogen as fuel in a fuel cell is water which makes it green energy. According to the International Energy Agency the capacity of new renewable energy sources is expanded to 290 gigawatts (GW) in 2021, breaking the previous record set in the previous years.

Challenges

• High Cost of Manufacturing -Hydrogen is more expensive to obtain, as it costs more to produce the energy from renewable sources that is necessary to produce green hydrogen through electrolysis.
• It Requires a High Initial Investment
• Lack of Storage and Moving Facilities for Green Hydrogen