Green Hydrogen Emerges as a Key Driver in the Global Decarbonization Market
The Decarbonization Market is being transformed by the emergence of green hydrogen as a critical pathway to decarbonize hard-to-abate sectors. Green hydrogen is produced via electrolysis of water using renewable electricity (solar, wind, hydro, geothermal), resulting in zero CO2 emissions. It can be used as a feedstock for ammonia (fertilizers), methanol (chemicals), and refining (hydrocracking, hydrotreating, desulfurization), as a reducing agent for iron and steel (hydrogen direct reduced iron, H2-DRI), as a fuel for heavy-duty transport (trucks, buses, trains, ships, aviation), as a storage medium for renewable energy (power-to-gas, power-to-power), and as a blending agent in natural gas grids (up to 20% hydrogen by volume). The EU has set a target of 10 million tons of domestic green hydrogen production and 10 million tons of imports by 2030 under the REPowerEU plan. The US Inflation Reduction Act includes a hydrogen production tax credit (45V) of up to $3/kg for green hydrogen (based on lifecycle emissions). Japan and South Korea have national hydrogen strategies targeting 3 million and 5 million tons of hydrogen by 2030 respectively. China has over 100 hydrogen refueling stations and targets 1 million fuel cell vehicles by 2030. India has launched the National Green Hydrogen Mission, targeting 5 million tons of green hydrogen production by 2030.
According to recent data, the Decarbonization Market was valued at USD 1.9 Billion in 2023 and is projected to grow to USD 6.17 Billion by 2033, with a compound annual growth rate (CAGR) of 12.5% from 2027 to 2033. The green hydrogen segment is projected to grow at over 25% CAGR from a small base, reaching 10-15% of market value by 2033. Major green hydrogen projects include NEOM (Saudi Arabia, 600 tons/day), HyDeal Ambition (Spain/France, 3.3 GW electrolysis), NortH2 (Netherlands, 10 GW offshore wind + 4 GW electrolysis), H2H Saltend (UK, 600 MW), Hybrit (Sweden, fossil-free steel), H2 Green Steel (Sweden, 5 million tons/year green steel), and the Asian Renewable Energy Hub (Australia, 14 GW wind/solar + 26 GW electrolysis). Electrolyzer manufacturing capacity is expanding rapidly, with leading players including NEL (Norway), ITM Power (UK), Siemens Energy (Germany), ThyssenKrupp (Germany), Toshiba (Japan), Hitachi Zosen (Japan), Asahi Kasei (Japan), Panasonic (Japan), Mitsubishi Power (Japan), Doosan (South Korea), Hyosung (South Korea), ElringKlinger (Germany), Enapter (Germany), Sunfire (Germany), H2Pro (Israel), Fusion Fuel (Portugal), Ohmium (US), Electric Hydrogen (US), Verdagy (US), Evoloh (US), Hysata (Australia), and Hysata (Australia). For hydrogen project developers and investors, understanding electrolyzer technology (alkaline (AWE), proton exchange membrane (PEM), solid oxide (SOEC), anion exchange membrane (AEM)), hydrogen compression (mechanical (reciprocating, diaphragm, centrifugal), electrochemical, cryogenic, metal hydride, adsorption), storage (gaseous (250-700 bar), liquid (-253°C), metal hydrides, chemical hydrides (liquid organic hydrogen carriers (LOHCs), ammonia, methanol)), transport (pipelines (dedicated hydrogen, natural gas blending), shipping (liquid hydrogen (LH2), ammonia (NH3), LOHC), trucking (compressed hydrogen tube trailers, liquid hydrogen tankers)), and safety (NFPA 2, ISO 19880, IEC 60079, IEC 62282, ISO 14687, ISO 16110, ISO 22734) is essential.
