Brown Hydrogen Market Size, Share & Industry Analysis By Technology (Coal gasification with carbon capture storage, Coal gasification without carbon capture storage), By Application (Chemicals & Petrochemicals, Iron and Steel, Others)And Regional Forecast, 2024-2032

The coal gasification method is used to produce brown hydrogen. In coal gasification, coal is transformed from a solid to a gas. Methane gas is produced during gasification, breaking down coal into its chemical ingredients. After isolation, the gas can be cleaned in traditional ways to recover hydrogen and the high-concentration carbon dioxide stream, then transported for disposal.

Low raw material and production costs and huge availability of raw material drive the brown hydrogen market. Furthermore, alternative hydrogen manufacturing processes are more expensive in comparison. Green hydrogen, for example, has a higher production cost than brown hydrogen. This also provides a positive influence on the growth of the market.

• According to IEA, refining and chemical manufacturing based on hydrogen derived from fossil fuels are already concentrated in coastal industrial zones worldwide, such as the North Sea in Europe, the Gulf Coast in North America, and southeastern China. Overall expenses would be reduced if these plants were encouraged to switch to cleaner hydrogen generation.

High carbon emissions from coal gasification, on the other hand, stifle the growth of the market to some extent. Moreover, the demand for brown hydrogen will hinder the development of renewable energy-based hydrogen, commonly known as green hydrogen. However, during the projected period, the increased traction for coal gasification with carbon capture and storage is expected to present a lucrative opportunity.

Asia Pacific dominated the global market in 2020, due to major brown hydrogen industry players present in China and a growing consumer base in the region.

• Based on the stated report of the World Bank, China is the world's largest producer of hydrogen. Still, the vast majority is brown hydrogen made from fossil fuels, with coal accounting for 62 percent of feedstock against 18 percent internationally. Only 4% of China's hydrogen is produced via electrolysis, converting water into oxygen and hydrogen.

IMPACT OF COVID-19 ON THE BROWN HYDROGEN MARKET

The pandemic's breakout significantly influenced hydrogen technology, resulting in a detrimental impact on the worldwide brown hydrogen industry, particularly in the early stages. The process of procuring raw materials was also hampered, exacerbating the situation. However, if the global situation improves, the market will recover quickly.

KEY INSIGHTS

The report will cover the following key insights:

• Recent Advancements in Brown Hydrogen


• Key Industry Trends


• Regulatory Landscape for Brown Hydrogen


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

ANALYSIS BY TECHNOLOGY

Based on the technology, the global market is segmented into coal gasification with carbon capture storage and coal gasification without carbon capture storage. The coal gasification without carbon capture storage segment accounted for a large share in 2020. In terms of volume, coal gasification without carbon capture storage took the lead during the projected period due to the cost of coal gasification without carbon capture and storage being low compare to other technology. As of now, there are an enormous number of coal gasification plants without carbon storage for hydrogen production, particularly in China and the Asia Pacific area.

ANALYSIS BY APPLICATION

Based on the application the global market is segmented into chemical & petrochemical, iron & steel, and others. The chemical & petrochemical segment had the most significant market share by an application during the forecasted period due to the wide application of brown hydrogen in the chemical industries. China, India, Russia, the U.S., Indonesia, Saudi Arabia, and other countries are essential produces of brown hydrogen globally. Though the demand for brown hydrogen as an auxiliary reducing agent in blast furnaces accelerating the demand in iron & steel industries also.

REGIONAL ANALYSIS

North America will have a substantial share of the global market during the forecast period, owing to the region's growing demand for sustainable energy sources. A tax credit is chosen because of its successful track record, numerous decarbonized hydrogen applications, unpredictable cost trajectory, and worries about carbon leakage and employment losses leading the growth in this region.

Europe region also witnesses significant growth during the forecast period. The increasing share of cumulative emission reductions in the Net Zero Emissions Scenario reflects hydrogen's relevance. Deployment of cleaner hydrogen production technologies will allow hydrogen and hydrogen-based fuels to avoid up to 60 Gt CO2 emissions in the Net Zero Emissions Scenario from 2021 to 2050, mirroring the region's expansion.

KEY PLAYERS COVERED

The report will include key players such as Shell, Sinopec, J-Power, Iwatani Corporation, Kawasaki Heavy Industries Ltd, Sasol, Bloom Energy Corporation.

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• In June  2021, Shell has started up Europe's most significant PEM green hydrogen electrolyze, which will produce green hydrogen at Shell's Energy and Chemicals Park Rheinland. The European Commission funds the fully operating plant, part of the Refine European consortium.


• In March 2021, In Australia, Kawasaki and his collaborators started producing hydrogen from coal. In a $388 million (A$500 million) pilot project in Australia, Japanese-Australian cooperation has begun producing hydrogen from brown coal.