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Blue Hydrogen: a game-changer in the energy industry

The term “blue hydrogen” pertains to hydrogen obtained from natural gas using the steam methane reforming (SMR) method. SMR combines natural gas with extremely hot steam in the existence of a catalyst, resulting in carbon monoxide and hydrogen as a result of a chemical reaction. Carbon dioxide emissions are absorbed and stored underground utilizing Carbon Capture, Utilization, and Storage (CCUS) technology, producing almost pure hydrogen. Growing importance of blue hydrogen is likely to fuel growth of the global blue hydrogen market in the years to come.

The global blue hydrogen market is developing due to an increasing focus on clean hydrogen energy with low content of carbon, increasing use of hydrogen fuel in the form of an active propulsion system in the automotive industry. Furthermore, the expectation that blue hydrogen would act as a catalyst for green hydrogen is estimated to boost the global market in the years to come.

Furthermore, an increase in the use of hydrogen fuel in automobile propulsion systems, as well as the expanding practice of electrification in many verticals employing hydrogen energy are likely to fuel growth of the global blue hydrogen market. In its low-carbon version (green or blue hydrogen), hydrogen is seen to be a game-changer in the energy industry, and it is gaining prominence by lessening the obstacles it faces.

Increasing Use of Blue Hydrogen in Fuel Cell-powered Automobiles to Trigger Expansion of the Market

The global blue hydrogen market is being driven by an increase in demand for clean hydrogen in end-user sectors such as chemical, as well as rising industrialization and globalization. One of the most important end-user sectors for hydrogen is the chemical industry. The chemical sector consumes more than two-thirds of all hydrogen produced globally, mostly for the manufacturing of ammonia and methanol.

In the near future, the global blue hydrogen market is projected to be propelled by the increased use of hydrogen in fuel cell-powered automobiles. Fuel cells are a pollution-free mode of transportation that may be used to replace fossil fuels. Furthermore, governments from all over the world are supporting the usage of fuel cell cars as a way to minimize greenhouse gas emissions. They are giving subsidies and tax breaks, as well as increasing their investment in development of fuel cells vehicles’ infrastructure. As a result, the growing utilization hydrogen in the vehicle industry is expected to drive demand for blue hydrogen in the years to come.

Since it is connected with higher expenditures for CO2 storage and transport, as well as requiring monitoring of stored CO2, blue hydrogen confronts societal acceptability concerns. In the forthcoming years, this is anticipated to stymie growth of the global blue hydrogen market.

The Netherlands declared its plans for the world’s first hydrogen bourse in October 2020, making it the hydrogen center for Northwest Europe. As per research issued by the government commissions, the government intends to create a hydrogen commodity market as early as 2026. In order to help reduce carbon emissions, the Dutch government is putting a strong emphasis on blue or green hydrogen.

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The most sophisticated and cost-effective technique, steam methane reforming (SMR), currently holds the most market share and is projected to continue to do so in the next years. Steam methane reforming is used to generate blue hydrogen at many of the world’s biggest central oil and gas refinery plants and businesses.

Rising Demand for Blue Hydrogen in End Use Sectors to Drive Market in Asia Pacific

Due to growing demand for hydrogen in various end-user sectors such as fertilizers, chemicals, and refineries in countries like South Korea India, and China, the blue hydrogen market in Asia Pacific is projected to grow rapidly.

Europe has an important role to play in the global blue hydrogen market. Since many nations in this region place a strong emphasis on sustainable energy sources such as green or blue hydrogen, and presence of innovative policies such as the Hydrogen Initiative Declaration, Europe is likely to account for a large market share in the years to come. Due to growing demand for clean energy sources including green or blue hydrogen, the regional market is expected to grow in the years to come.

This article was written by Pragati Pathrotkar from TechBullion and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to