Hydrogen Purifier Market Trends

Growth Drivers

• Increase of green hydrogen production: A key trend shaping the hydrogen purifier market is the rapid expansion of green hydrogen projects worldwide. Despite the production of relatively pure hydrogen by electrolysis, a purifier is required to remove impurities such as water vapor so that it does not affect the end use applications. Furthermore, the expansion of green hydrogen projects provides a favorable ecosystem for manufacturers to supply advanced hydrogen purifier solutions. For instance, in May 2024, Total Energies, EREN Groupe, and Verbund signed a MoU with the Republic of Tunisia to explore the export of green hydrogen to Europe through pipelines in the project titled H2 Notos. The expanded application of green hydrogen is positioned to create a surging demand for the installation of hydrogen purifiers.

• Expansion of industrial hydrogen applications: Increasing application of hydrogen in the industrial sector necessitates investments to improve commercial production, which is a major driver of the hydrogen purifier market. The pivot towards sustainability positions hydrogen as one of the most vital gases for various industries. The global expansion of hydrogen projects is a key indicator of the importance placed by governments across the world on increasing hydrogen production capabilities, and these projects create sustained demand for hydrogen purifiers.
  
  Additionally, the surging popularity of hydrogen as a fuel for the aerospace and maritime industries opens new avenues for purifier adoption. For instance, in June 2024, Essar Group announced a USD 3.65 billion investment over the next four years in setting up a hydrogen plant in India.

• Surge in ammonia and methanol production: The hydrogen purifier sector is positioned to benefit from a surge in methanol and ammonia production as hydrogen is a critical feedstock in the production process. The requirement for high-purity hydrogen to maintain the production quality of methanol and ammonia for end use in flourishing industries such as agriculture, chemicals, and energy storage systems is projected to drive demand for hydrogen purifiers. For instance, in October 2024, AM Green placed an order with John Cockerill Hydrogen for one of the world’s largest green ammonia projects to be produced with 1.3 GW of electrolyzers. The large-scale investment in the projects creates burgeoning opportunities for manufacturers to provide advanced hydrogen purifier solutions with high-purity hydrogen remaining a crucial input in the Haber-Bosch process.

Challenges

• Energy consumption in purification processes: Hydrogen purification technologies such as cryogenic and PSA systems can be energy intensive. The energy-intensive applications can add to operational costs. In regions where energy costs are high, and the subsidization rates for industry applications are low, the operational costs can be affected. Development of energy-efficient purification systems is underway but it may take time to become commercially viable.

• Variability in feedstock quality: The hydrogen feedstock quality varies significantly depending on the production method. Diverse feedstock characteristics can complicate standardization and add to development costs. The variability can cause challenges to businesses seeking to scale operations across multiple geographies.