Grey Hydrogen Market

Grey Hydrogen Market: Overview

Grey hydrogen is produced through the process of steam methane reforming, which is currently the most widely used method for hydrogen production. It involves the conversion of natural gas and steam into hydrogen and carbon dioxide. The carbon dioxide generated in this process is usually emitted into the atmosphere, making it a major contributor to greenhouse gas emissions.

Current Market Size and Expected Evolution

The global grey hydrogen market was valued at ~ USD 79 billion in 2020 and is expected to grow at a CAGR of + 4 % during the forecast period.

The market is primarily driven by the increasing demand for hydrogen from various end-use industries such as chemical manufacturing, refining, and transportation.

Key Players-

• Iwatani Corporation
• Xebec Adsorption Inc.
• Messer
• ITM Power
• Nel ASA
• Iberdrola
• Siemens AG
• Linde plc

Segmentation-

By Source

• Natural Gas
• Coal

By Technology

• Steam Methane Reforming
• Coal Gasification

By End-use

• Petrochemical
• Ammonia
• Chemical
• Steel
• Transportation
• Power
• Others

By Regional & Country Level:

• North America

  • US.
  • Canada

• Europe

  • UK.
  • France
  • Germany
  • Italy

• Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia

• Latin America

  • Brazil
  • Mexico

• Middle East and Africa

  • GCC
  • Africa
  • Rest of the Middle East and Africa

Major Trends and Drivers Affecting the Industry

The grey hydrogen market is driven by several factors, including the increasing demand for hydrogen in various end-use industries, such as refining and chemical manufacturing. The transportation sector is also emerging as a major consumer of hydrogen, with the increasing adoption of fuel cell electric vehicles (FCEVs).

Moreover, the growing focus on decarbonization and the shift towards renewable energy sources are driving the demand for green hydrogen. This, in turn, is expected to impact the growth of the grey hydrogen market negatively.

Opportunities and Threats in the Industry

One of the significant opportunities for the grey hydrogen market is the growing demand for hydrogen in the transportation sector, particularly in FCEVs. Additionally, the increasing use of hydrogen as a fuel in power generation and heating applications is expected to boost market growth.

However, the growth of the grey hydrogen market is also threatened by the increasing demand for green hydrogen, which is produced through the electrolysis of water using renewable energy sources such as wind and solar. Moreover, the high cost of carbon capture and storage technologies required to reduce carbon emissions from grey hydrogen production is also a significant challenge faced by the industry.

Regulatory and Legal Issues

The grey hydrogen market is regulated by several laws and regulations, including emission standards and regulations related to the production and transportation of hydrogen. The industry is also subject to various environmental regulations aimed at reducing greenhouse gas emissions.

Target Demographics and Preferences

The primary consumers of grey hydrogen are chemical manufacturers, refineries, and the transportation sector, particularly FCEV manufacturers. The demand for hydrogen from these industries is driven by factors such as cost-effectiveness, reliability, and efficiency.

Pricing Trends in the Industry

The pricing of grey hydrogen varies across different regions and is influenced by factors such as supply and demand, production costs, and government regulations. In some regions, the pricing of grey hydrogen is also affected by the availability of natural gas and other feedstocks required for its production.

Conclusion

In conclusion, the grey hydrogen market is expected to grow steadily in the next few years, driven by the increasing demand for hydrogen from various end-use industries. However, the growth of the industry is also threatened by the increasing demand for green hydrogen and the high cost of carbon capture and storage technologies required to reduce carbon emissions from grey hydrogen production. The industry is also subject to various laws and regulations aimed at reducing greenhouse gas emissions, making it imperative for companies to adopt sustainable production methods.