Green Hydrogen Generator Market Size, Share & COVID-19 Impact Analysis, By Type (Traditional Alkaline Electrolysis, PEM Electrolysis, and Solid Oxide Electrolysis), By Application (Power Plants, Steel Plant, Electronics and Photovoltaics, Industrial Gases and Others), and Regional Forecast, 2021-2028

The global green hydrogen generator market size was USD 200.9 million in 2020 and is projected to grow from USD 222.4 million in 2021 to USD 325.1 million in 2028 at a CAGR of 5.6% during the 2021-2028 period. The global impact of  COVID-19 has been unprecedented and staggering, with green hydrogen generators witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -6.8% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Green hydrogen is produced using a water electrolysis process with the help of renewable sources such as wind power and solar power.  It is widely used in several applications such as power plants, electronics, industrial gases, power to gas conversion, and energy storage for electric vehicles. It provides clean power for manufacturing and it has high efficiency, lightweight, easy transportation, and low boiling point.

Covid 19: Investment in Water Electrolysis Projects by Major Companies to Negate Sluggish Growth

COVID-19 resulted in the global health emergency and affected numerous industries and businesses. The pandemic may have postponed several industrial projects leading to a major disruption in the supply chains. Accordingly, the market for green hydrogen generator has been slightly affected by this pandemic. However, the burgeoning demand for renewable sources is anticipated to attract significant investments that will bode well for the market in the years to come. For instance, in June 2020, ThyssenKrupp AG and De Nora expanded their manufacturing capacities for water electrolysis plants and can now produce electrolysis cells with a total power consumption of one gigawatt.

LATEST TRENDS

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Demand for Green Hydrogen  from Transportation Sector to Drive Market Growth

Green hydrogen is widely being used in the transportation sector due to its several environmental benefits, such as eliminating air pollution in urban areas and reducing overall carbon dioxide emissions to the atmosphere. Currently, the transport sector contributes almost 25% of greenhouse gas emissions and urban air pollution. Green hydrogen is a promising solution towards an energy-efficient and decarbonized system, as it can be used for the substitution of fossil fuels in mobility sectors.

An increase in the demand for fuel cell-based electric vehicles and buses, especially in North America and Europe, is surging the demand for green hydrogen. According to a McKinsey Report, the European Union (EU) would have around 5,000 hydrogen fueling stations with a total capacity of approximately 2,615,000 tons of green hydrogen to supply hydrogen fuel cell vehicles in the year 2030. Growing investment in green hydrogen fuel cell technology would be driving the market growth.

DRIVING FACTORS

Rising Investments in Europe for Green Hydrogen Economy to Favor Growth

Several countries such as Germany, France, and the U.K. have initiated investing in green hydrogen production and its storage technologies. For instance, in June 2020, Germany adopted the national strategy, “German Hydrogen Strategy for Global Leadership in the Energy Transition.” This policy will help the hydrogen to be used as a multipurpose energy carrier and serve as a basis for the production of synthetic fuels. This factor is likely to drive the global green hydrogen generator market growth during the forecast period.

Manufacturers in the European region are planning to invest in green hydrogen production. In August 08, 2020, Germany’s first hydrogen project included in the “real-world laboratories fostering the energy transition” program named as WESTKÜSTE100 project received the go-ahead and funding approval of 89 million euros from the Federal Ministry of Economic Affairs and Energy. This project will produce green hydrogen and will be used in industrial processes and interlinked different material cycles within the existing infrastructure.

Technological Advancement in Green Hydrogen Production to Accelerate Business

Several technologies are used to produce hydrogen, including water electrolysis, steam methane reforming, partial oxidation of oil, and coal gasification. Among these, water electrolysis is used primarily for the production of green hydrogen. Water electrolysis produces hydrogen and oxygen from renewable sources, such as wind and solar power.

Key players are heavily investing in the research and development of water electrolysis production technology. For instance,

• On June 30, 2020, ThyssenKrupp AG's proprietary water electrolysis technology for the production of green hydrogen met the requirements for participation in the primary control reserve market. Now, the company’s water electrolysis plants will be able to act as large-scale buffers to stabilize the power grid and compensate for fluctuations flexibly.


• On July 07, 2020, Air Products and ThyssenKrupp AG signed a Strategic Cooperation Agreement (SCA) to develop projects supplying green hydrogen. ThyssenKrupp AG will deliver its technology, equipment, and technical services for water electrolysis plants to Air Product with this agreement.

RESTRAINING FACTORS

High Capital Cost of Green Hydrogen Production & Storage to Hamper the Market Growth

The global market is mainly hampered by its high price and several mechanical properties such as low current density and the incapability to function at high pressure.

Green hydrogen production technologies are hardly economically viable due to their high price of green hydrogen production, storage, and distribution. This led to increased capital expenditures of systems and generated green hydrogen. This reduces green hydrogen’s economic competitiveness in comparison to other fuels, mainly natural gas.  However, according to Wood Mackenzie Report 2020, Green hydrogen production costs could fall by as much as 64% by the year 2040.

SEGMENTATION

By Type Analysis  

Traditional Alkaline Electrolysis Segment  to Grow at a Considerable Pace

According to type, the market is divided into PEM electrolysis, traditional alkaline electrolysis, and solid oxide electrolysis.

In 2020, the traditional alkaline electrolysis segment held the majority share of the market. Traditional alkaline water electrolysis is a key technology for large-scale green hydrogen production from renewable energy sources.

The Proton exchange membrane (PEM) electrolysis segment is also the key segment of the market, owing to its high density, high electrolysis efficiency, non-polluting reaction, lightweight, compact structure, etc. This electrolysis technology is primarily used for hydrogen cooling in power plants.

Solid oxide electrolysis (SOEL), also known as steam electrolysis, is a high-temperature electrolysis process working at a temperature between 700 and 900 °C.  

By Application Analysis

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Increasing Investment in Renewable Power Plant to Augment Industry Growth

As per application, the market is classified into power plants, industrial gases, electronics & photovoltaics, steel plants, and others.

The power plants segment held the major green hydrogen generator market share in 2020.  Green hydrogen is widely used in the production of ammonia, methanol, and steel.  Currently, power plants are running through fossil fuels such as natural gas and coal, so there is great potential for reducing emissions using clean and ecologically acceptable green hydrogen.

Green hydrogen is also used in gas turbines to increase the robustness and flexibility of the power plants, and green hydrogen produced ammonia could be used in natural gas and coal-fired power plants to reduce emissions.

The industrial gases segment is expected to showcase substantial growth as green hydrogen can be injected directly into existing natural gas pipelines, especially in dense urban areas.

The others segment comprises energy storage or fueling for FCEVs, the power to gas, etc.

REGIONAL INSIGHTS

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The green hydrogen generator market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East, and Africa.

Europe stood at USD 73.72 million in 2020. Germany accounts for the largest market share in the region as it is a hub for offshore wind, solar power, electric vehicle, and consumer electronics. Moreover, green hydrogen is widely used in these industries as a fuel that is likely to favor market growth in the region.  Germany is continuously investing in green hydrogen projects to cater to the increasing demand for clean and sustainable energy in the future. For instance

• In December 2020, STEAG, ThyssenKrupp Steel, and ThyssenKrupp Uhde Chlorine Engineers signed a joint agreement to construct a water electrolysis plant at the STEAG site in Walsum, Germany.

The Asia Pacific is the fastest-growing region for the green hydrogen market due to increasing refinery operations to cater to the growing demand for fuels from countries such as China, India, Japan, and South Korea.

• For instance, On March 7, 2020, The New Energy and Industrial Technology Development Organization also called as NEDO, Tohoku Electric Power Co., Inc., Toshiba Energy Systems & Solutions Corporation (Toshiba ESS), and Iwatani Corporation jointly inaugurate the Fukushima Hydrogen Energy Research Field (FH2R), has been constructed with a renewable energy-powered 10MW-class hydrogen production unit.

The countries from North America are putting efforts to shift their focus from fossil fuels to renewable fuels. They are also engaging in installing high-capacity electrolysis plants to reduce the application of unconventional fuels that is leading to excessive greenhouse gas emissions. This would drive and will boost the demand for green hydrogen.

• For instance, On January 21, 2021, the Canadian Government signed a contract with ThyssenKrupp Uhde Chlorine Engineers to install an 88-megawatt water electrolysis plant for Hydro-Québec. This new facility will be able to generate 11,100 metric tons of green hydrogen per year.

The Middle East & African countries such Saudi Arabia, UAE, Kuwait, and Qatar consistently focus on carbon dioxide emission-free environments. Therefore, they are investing in a green hydrogen economy.

• For instance, On July 07, 2020, Air Products & Chemicals started constructing a green hydrogen plant in Saudi Arabia powered by 4 gigawatts of wind and solar power. The completed facility will produce 650 tons of green hydrogen daily.

KEY INDUSTRY PLAYERS

De Nora S.p.A. Holds Leading Position Through its Green Hydrogen Generator Projects

The market consists of small and large players with an aim to deliver scale products for numerous applications to shape the competitive landscape. Some of the major players are employing their resources in technological advancement and collaborations with some of the local sales partners.

De Nora is engaged in the manufacturing and supply of alkaline water electrolysis technologies to produce green hydrogen. The company has installed over 3,000 reliable and affordable devices across the world. It is well-known as a leader in the alkaline and proton exchange membrane (PEM) water electrolysis category. 

• On April 13, 2018, The Belgian company AGFA, and the Italian company De Nora signed a technology development agreement. Under this agreement, De Nora will integrate AGFA diaphragm separators with their electrodes into a novel package designed as a bespoke solution for hydrogen and oxygen production through alkaline water electrolysis.

LIST OF KEY COMPANIES PROFILED:

• Nel (Proton On-Site) (Norway)


• Asahi Kasei (Japan)


• Hydrogenics (US)


• Areva H2gen (France)


• Shandong Saikesaisi Hydrogen Energy Co., Ltd. (China)


• Teledyne Energy Systems (US)


• Siemens AG (Germany)


• Kobelco Eco-Solutions (Japan)


• McPhy (France)


• Yangzhou Chungdean Hydrogen Equipment Co., Ltd (China)


• Suzhou Jingli (China)


• TianJin Mainland (China)


• ITM Power (UK)


• 718th Research Institute of CSIC (China)


• Idroenergy Spa (Italy)


• Erredue SpA (Italy)


• MVS Engineering (India)


• GreenHydrogen .dk (Denmark)   


• Enapter (Italy)


• Giner Inc. (US)


• ShaanXi HuaQin (China)


• Next Hydrogen (Canada)


• H-Tec Systems GmbH (Germany)


• Beijing Zhondian (China)

KEY INDUSTRY DEVELOPMENTS:

• October 2020 – GTT has acquired Areva H2Gen. Areva H2Gen is engaged in the conception and assembly of electrolyzers for the production of green hydrogen.


• December 2020 – Green Hydrogen Systems have obtained investments for a total of approx. EUR 28 million from A.P. Møller Holding A/S to enable it to meet the accelerating demand for electrolyzer capacity.

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The market research report on green hydrogen generator presents a comprehensive assessment of the industry by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches have been adopted to make meaningful assumptions and views to formulate the report. Furthermore, the report covers a detailed analysis and information as per market segments ,including type, applications, and regions, helping our readers to get a comprehensive overview of the global industry.

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