Hydrogen market

Hydrogen market The development of hydrogen is essential for achieving the energy transition, meeting the goals of decarbonization, and establishing leading enterprises as market authorities. The global capacity for producing green hydrogen was 109 kilo tons per year (ktpa) in 2022, up 44% from 2021, according to GlobalData, a leading provider of data and analytics. In its report issued recently, “Green Hydrogen Leaders: Q4 2022,” GlobalData identifies deals, trends, and investments as helpful benchmarks for determining which top firms are fueling the growth of the hydrogen market.

According to the analytics company, approximately 393 hydrogen-related deals were completed in 2022, a considerable rise over the 277 deals documented in 2021. This demonstrates an upward trend in the development for low-carbon hydrogen market, which might be important in obtaining over 111 million tons per year (mtpa) of capacity globally by 2030. The renewable energy industry has long been interested in hydrogen, and more especially green hydrogen. It is changing the game when it comes to the transition to renewable energy because of its crucial applications across industries.

Even though in 2022 there were more corporate collaborations than those between governmental bodies, generating money and investing were crucial to the growth of the hydrogen economy. Compared to 2021 levels, the value of merger and acquisition (M&A) transactions reached $24.4 billion last year, a rise of 288%. The value of venture capital deals, on the other hand, increased from $595.23 million to nearly $3,001.1 million.

Over 111.9 mtpa of low-carbon hydrogen capacity was announced for 2022 in the US, Portugal, Canada, Denmark, Egypt, and other nations. Green Hydrogen International (GHI) announced two significant green hydrogen projects with a combined 43 mtpa capacity in Canada. Both projects are scheduled to start producing green hydrogen in 2030. In order to diversify their risk, several other businesses, like Fortescue Industries, which has two-thirds of its capacity outside of its native country of Australia, participated in numerous project investments around the world.

The experts claim that between Q4 2021 and Q4 2022, there were an increase in low-carbon hydrogen investments from 600 to over 1,700 despite the difficult global economic conditions. According to growing manufacturers’ electrolysis capacity and the number of EPC contractors taking part in larger green projects, over 90% of pipeline hydrogen projects as of January 2023 are green. This will generate momentum that will speed up the cost reduction along the entire hydrogen value chain, in addition to the development of renewable energy.