Hydrogen is increasingly recognised as a promising renewable energy source. It is gaining significant traction globally, evidenced by increasing investments, policy support, and technological advancements.
According to US market research firm MarketsandMarkets™, the global hydrogen market was valued at approximately USD 242.7 billion in 2023 and is projected to reach USD 410.6 billion by 2030, reflecting a compound annual growth rate (CAGR) of 7.8%.
Canadian-based Precedence Research calculated the global hydrogen market size at USD 262.13 billion in 2024, which is projected to reach around USD 556.56 billion by 2034. The market is expanding at a CAGR of 7.82% between 2024 and 2034. They said that the Asia Pacific hydrogen market will be USD 94.37 billion in 2024 and is expected to grow at a CAGR of 7.95% during the forecast year. The rising demand for clean energy solutions across various sectors drives this growth.
Hydrogen’s popularity is due to several key attributes that align with global sustainability goals. When used as a fuel, hydrogen produces only water vapor, resulting in no direct carbon dioxide (CO₂) emissions or other pollutants. This characteristic makes it an environmentally friendly alternative to fossil fuels.
According to Columbia Climate School’s ‘ State of the Planet ‘ blog, hydrogen contains nearly three times the energy per unit mass of traditional fossil fuels. This high energy content means that smaller quantities are needed to perform the same work, making it efficient for various applications.
Hydrogen can be used across multiple sectors, including transportation, industrial processes, and power generation. It also serves as an effective medium for storing surplus energy generated from renewable sources like wind and solar, addressing the intermittency issues associated with renewable energy. Hydrogen can be stored in various forms such as compressed gas and liquid hydrogen.
It can also be stored within solid materials through absorption or adsorption processes, such as metal hydrides, offering potential for higher energy densities. As liquid organic hydrogen carriers (LOHCs), organic compounds can reversibly absorb and release hydrogen through chemical reactions, facilitating storage and transport under ambient conditions.
While hydrogen offers significant advantages, challenges remain, such as reducing production costs, developing infrastructure for storage and distribution, and ensuring that production methods are environmentally sustainable. Addressing these challenges is crucial for hydrogen to fulfill its potential as a cornerstone of renewable energy systems.
Reports showed that governments and industries worldwide are investing heavily in hydrogen technologies, recognising their potential to drive economic growth and facilitate the transition to a low-carbon economy. As the most abundant element in the universe, hydrogen can be produced from various domestic resources, reducing dependence on imported fuels and enhancing energy security.
The hydrogen colour code
Although the gas is colourless, it is categorised with different colour codes like green, blue, grey, and other colours, based on its production methods. Two primary types are blue hydrogen and green hydrogen.
Blue hydrogen is derived from natural gas through Steam Methane Reforming (SMR) or Auto Thermal Reforming (ATR). These methods produce hydrogen and carbon dioxide (CO₂) as a by-product. To mitigate environmental impact, Carbon Capture and Storage (CCS) technologies are employed to capture and store the CO₂. Blue hydrogen still depends on fossil fuels, and the carbon capture process isn’t entirely efficient, leading to some residual emissions.
Green Hydrogen is generated by electrolysing water into hydrogen and oxygen using renewable energy sources like wind or solar power. This method produces no CO₂ emissions. Green hydrogen is considered the cleanest form of hydrogen; its production emits zero greenhouse gases, making it highly sustainable. (nsh)
Banner photo: This image was generated using OpenAI’s DALL·E image model through ChatGPT (2025). Prompt by user, composition by AI
