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Green Hydrogen with a strong Market Momentum

Green hydrogen or “green H 2 ” – hydrogen produced by using renewable or low-carbon sources of energy to split water into its components via electrolysis – is currently enjoying strong market momentum.

Governments around the world have set themselves decarbonization goals and are increasingly striving for energy independence. Many countries have developed national strategies, and Europe in particular has set itself ambitious targets for introducing green hydrogen. Indeed, in the period to 2030 Europe is likely to be the most dynamic region for the technology, with many small-scale and mid-scale projects clustered
in “hydrogen valleys” and utility-scale projects located in areas with access to abundant solar or wind power.

The unique value of green hydrogen is that it can be used to decarbonize sectors that  cannot be electrified, such as petrochemicals, iron and steel, or fertilizers. For this reason,
global green hydrogen  production is expected to grow massively in the coming years, the value pool arising from this ramp-up amounting to around EUR 500 billion by 2030.

The market for green hydrogen is likely to develop in two phases. Initially, in the five years between 2025 and 2030, the market will grow on the back of incentives offered by governments, especially in the European Union, the United States and Asia, combined with declining costs. The market for green hydrogen began with small-scale technological demonstration projects, with less than 1 MW electrolyzers.
Now, it is developing in the direction of multiple, large-scale green hydrogen production, with double-digit or even triple-digit MW electrolyzers.

Beyond 2030, the market will likely become self-sustaining. It will be driven by growing hydrogen supply routes  between countries where the cost of producing hydrogen is low and demand areas, with Europe becoming both an importer of green hydrogen and a major demand and production center in global
hydrogen supply chains. The main users of green hydrogen are expected to be oil and gas companies (for their refining processes), chemicals companies (foruse as feedstock), steel companies (for reducing iron) and producers of synthetic  fuels, such as ammonia for shipping and eSAF for aviation.

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