Comparing 7 vendors in Blue Hydrogen across 0 criteria.
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Emerging CompaniesInnovators 
PETRONAS
Xebec Adsorption
Air Products
Air Liquide
Linde
Aramco
Shell
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POWERED BY MARKETSANDMARKETS
Apr 23, 2024
The Blue Hydrogen Companies quadrant is a comprehensive industry analysis that provides valuable insights into the global market for Blue Hydrogen. This quadrant offers a detailed evaluation of key market players, technological advancements, product innovations, and emerging trends shaping the industry. MarketsandMarkets 360 Quadrants evaluated over 30 Blue Hydrogen companies of which the Top 7 Blue Hydrogen Companies were categorised and recognized as the quadrant leaders.
Blue hydrogen is primarily produced from natural gas using a process known as steam reforming, which combines natural gas and heated water to form steam. The result is hydrogen, with carbon dioxide as a byproduct. As a result, carbon capture and storage (CCS) is critical for capturing and storing carbon, thus leaving clean hydrogen. The market for blue hydrogen is defined as the sum of revenues generated by global companies involved in the production of blue hydrogen through various technologies, such as steam methane reforming, auto thermal reforming, and gas oxidation. Blue hydrogen involves various technologies that cater to several end-user industries such as petroleum refineries, power generation, chemical industries, and others.
The 360 Quadrant efficiently maps the Blue Hydrogen companies based on criteria such as revenue, geographic presence, growth strategies, investments, channels of demand, and sales strategies for the market presence of the Blue Hydrogen quadrant. The top criteria for product footprint evaluation included technology (steam methane reforming (SMR), auto thermal reforming (ATR) and Gas Oxidation), petroleum refinery, power generation, chemical industries, and other applications.Key trends highlighted in 360 Quadrants:
- The blue hydrogen market is projected to be valued at USD 44.5 billion by 2030, registering a CAGR of 11.9% during the forecast period. Decentralization, digitization, and decarbonization are just a few of the key operational changes that utilities are undergoing today, and these are the major factors expected to drive the global blue hydrogen industry during the forecast period.
- Policies are also being developed to support R&D and promote the use of clean fuels like hydrogen for a range of energy requirements in the dynamics of the Blue hydrogen industry. Blue Hydrogen companies are modifying their Blue Hydrogen portfolio to meet the demand of the transportation industries. For instance, in June 2022, One of the top power generation businesses in the UK, VPI, and Air Products and Chemicals, Inc. had a contract in place. Both businesses will strive to establish the Humber Hydrogen Hub, or "H3," as part of this collaboration. This finding will result in the mass production of low-carbon hydrogen, which VPI will use as a fuel substitute.
- The market for blue hydrogen in 2021 was dominated by the steam methane reforming sector, which held a 47.9% market share. A low-cost, low-energy way to make hydrogen is by SMR. Because raw ingredients (methane) are readily available, it is widely used. These elements are behind the segment's expansion. Some of the Blue Hydrogen companies in the domain include Aramco Shell and others.
- In 2022, the market for petroleum refineries was predicted to be worth USD 11.2 billion; from 2022 to 2030, it is anticipated to develop at the highest CAGR of 12.4%. This expansion can be ascribed to the increase in global demand for oil and natural gas for a variety of purposes, including the manufacture of plastic, transportation, and the production of power.
- A major aspect of creating development prospects for Blue Hydrogen companies is especially to produce specialized chemicals like methanol, ammonia, and others.
- Another primary reason driving the Blue Hydrogen companies is that hydrogen is mainly used in the chemical industry to produce ammonia and Methanol. Blue Hydrogen manufacturers are continuously introducing new technologies to meet the demand of customers. For instance, in March 2023, An agreement to jointly develop a new ammonia cracking technology was signed by Aramco, one of the top integrated energy and chemicals corporations in the world, and Linde Engineering, a pioneer in the production and processing of gases worldwide. With this partnership, Linde Engineering and Aramco will combine their expertise and resources in industrial research and development, lower-carbon hydrogen, and ammonia cracking technology.
- In 2021, North America held a 45.8% share of the global market for blue hydrogen, followed by Europe and Asia Pacific. Globally, significant legal assistance to reduce carbon emissions is what drives renewable energy generation projects (like solar and wind).
- This market is dominated by major Blue Hydrogen companies such as Aramco, Shell, Linde, Air Products and Others.
- Blue Hydrogen companies are adopting various strategies for acquisitions, product launches, and contracts & agreements to increase their share in the market. Some of the Blue Hydrogen companies are focusing on launching new technologies such as steam methane reforming, auto-thermal reforming, and gas oxidation. For instance, In April 2022, PPG acquired Arsonsisi's powder coatings business to expand its manufacturing capabilities in Europe, the Middle East and Africa region.
- Blue Hydrogen companies are also focused on building strategies to address the demand for the chemical industry. Cite an example, In 2022, to manufacture blue hydrogen at Uniper's Killinghome power plant site, Shell plc and Uniper S E agreed to a contract. Through this partnership, the two businesses will collaborate to decarbonize transportation, power, and industry across the Humber area.
- Most of the Blue Hydrogen companies are also focused on contracts and agreements, investments and expansions as essential growth strategies to boost market shares and expand regional presence in the blue hydrogen Industry.
- The Blue Hydrogen companies used investments and expansions as organic methods to diversify their product offerings and increase their operational footprint. Industry players like Shell plc, Linde plc, and Air Products adopted new product releases and investments & expansions as their primary approach.
The Full List
The Full List
| Company | Headquarters | Year Founded | Holding Type |
|---|---|---|---|
| Air Liquide | Paris, France | 1902 | Public |
| Air Products | Allentown, USA | 1940 | Public |
| Aramco | Dhahran, Saudi Arabia | 1933 | Public |
| Linde | Dublin, Ireland | 1879 | Public |
| PETRONAS | Kuala Lumpur, Malaysia | 1974 | Public |
| Shell | London, UK | 1907 | Public |
| Xebec Adsorption | Quebec, Canada | 1967 | Private |
Frequently Asked Questions (FAQs)
Blue hydrogen is a term used to describe hydrogen gas produced through a process called steam methane reforming (SMR) or autothermal reforming (ATR), where natural gas is the primary feedstock. The process involves reacting natural gas with high-temperature steam, resulting in the production of hydrogen gas and carbon dioxide (CO2) as a byproduct.
The term "blue" is used to indicate that the CO2 emissions generated during the production of hydrogen are captured and stored or utilized through carbon capture and storage (CCS) technologies. By capturing and sequestering the CO2 emissions, blue hydrogen aims to reduce its overall carbon footprint compared to traditional hydrogen production methods, which release CO2 directly into the atmosphere.
Carbon capture and storage (CCS) plays a crucial role in blue hydrogen production by mitigating the carbon emissions associated with the process. When producing blue hydrogen through steam methane reforming (SMR) or autothermal reforming (ATR), carbon dioxide (CO2) is produced as a byproduct. CCS technology involves capturing the CO2 emissions generated during hydrogen production and then storing or utilizing them to prevent their release into the atmosphere. In the context of blue hydrogen, CCS is employed to capture the CO2 emissions from the reforming process.
The captured CO2 can be transported to suitable storage sites, such as underground geological formations, where it can be securely stored for long periods. This prevents the CO2 from contributing to climate change by being released into the atmosphere. Alternatively, the captured CO2 can be utilized for other purposes, such as enhanced oil recovery (EOR). In EOR, the captured CO2 is injected into oil reservoirs, which helps to increase oil production while simultaneously storing the CO2 underground.
By integrating CCS into blue hydrogen production, the aim is to significantly reduce the carbon footprint associated with hydrogen generation, making it a lower-emission alternative to conventional hydrogen production methods. CCS allows for the continued use of natural gas as a feedstock for hydrogen production while mitigating its environmental impact by preventing CO2 emissions from entering the atmosphere.
Blue hydrogen offers several potential environmental benefits:
Reduced carbon emissions: By capturing and storing or utilizing the carbon dioxide (CO2) emissions produced during blue hydrogen production, this method significantly reduces greenhouse gas emissions compared to traditional hydrogen production methods. It helps to mitigate climate change and contributes to global efforts to reduce carbon footprints.
Transition to a low-carbon economy: Blue hydrogen can serve as a transitional solution on the path towards a more sustainable and decarbonized energy system. It allows for the utilization of existing natural gas infrastructure while reducing carbon emissions, making it a stepping stone towards a future hydrogen economy based on renewable sources.
Cleaner air quality: Blue hydrogen production reduces the release of pollutants associated with traditional fossil fuel use. By utilizing natural gas in a more controlled and efficient manner, the emissions of particulate matter, sulfur dioxide (SO2), nitrogen oxides (NOx), and other harmful pollutants can be significantly reduced, improving local air quality.
Potential for carbon-neutral or carbon-negative hydrogen: When coupled with carbon capture and storage (CCS) technology, blue hydrogen has the potential to achieve carbon neutrality or even carbon negativity. By capturing and permanently storing more CO2 than is produced during hydrogen production, blue hydrogen can contribute to the removal of CO2 from the atmosphere.
Utilization of existing infrastructure: Blue hydrogen can leverage existing natural gas infrastructure, including pipelines and storage facilities. This advantage allows for a more rapid deployment and integration of hydrogen into existing energy systems, potentially accelerating the transition to a hydrogen-based economy.
Scaling up blue hydrogen production faces several challenges:
Carbon capture and storage (CCS) infrastructure: CCS infrastructure is necessary to capture and store or utilize the carbon dioxide (CO2) emissions produced during blue hydrogen production. However, the development and deployment of CCS infrastructure on a large scale is a significant challenge. It requires substantial investments, suitable storage sites, and the development of transportation networks for CO2.
Cost implications: Blue hydrogen production involves additional costs compared to conventional hydrogen production methods. The implementation of CCS technologies adds expenses, including the capture, transportation, and storage of CO2. These additional costs can make blue hydrogen less economically competitive compared to other energy sources, especially in the absence of supportive policies or carbon pricing mechanisms.
Natural gas dependency: Blue hydrogen production relies on natural gas as the primary feedstock. This creates a dependency on fossil fuel resources, which may not align with long-term sustainability and decarbonization goals. While blue hydrogen can be a transitional solution, the goal is to eventually shift to renewable hydrogen sources like green hydrogen produced from renewable electricity.
Energy efficiency: The process of converting natural gas into hydrogen through steam methane reforming (SMR) or autothermal reforming (ATR) involves energy-intensive steps. Enhancing the energy efficiency of these processes is crucial to minimize energy waste and improve the overall sustainability of blue hydrogen production.
Scale and infrastructure requirements: Scaling up blue hydrogen production would require significant investments in new production facilities, infrastructure for CO2 transport and storage, and retrofitting existing infrastructure. The construction and expansion of such infrastructure may face logistical and regulatory challenges, including securing permits, ensuring safe transportation, and addressing public acceptance concerns.
Environmental concerns: Although blue hydrogen production aims to reduce carbon emissions, concerns exist regarding potential leaks of CO2 during capture, transport, or storage, which could undermine its environmental benefits. Ensuring rigorous monitoring, proper site selection, and secure storage are crucial for minimizing such risks.
Energy and Power Generation: Blue hydrogen can play a vital role in decarbonizing the energy and power generation sectors. It can be used as a clean fuel in gas turbines and fuel cells to produce electricity, providing a low-carbon alternative to traditional fossil fuel-based power generation. Blue hydrogen can help to reduce carbon emissions and enhance the sustainability of the energy sector.
Transportation: The transportation sector, including heavy-duty vehicles, shipping, and aviation, can benefit from blue hydrogen as a clean energy source. Hydrogen fuel cells can power vehicles, offering zero-emission transportation options. Blue hydrogen can serve as a transitional fuel until green hydrogen becomes more widely available, helping to reduce carbon emissions from transportation and improve air quality.
Industrial Processes: Blue hydrogen can be used as a feedstock in various industrial processes. Industries such as petrochemicals, refineries, ammonia production, and steel manufacturing often require hydrogen for their operations. By using blue hydrogen instead of hydrogen produced from fossil fuels without CCS, these industries can significantly reduce their carbon footprint and contribute to sustainable industrial practices.
Residential Applications: Blue hydrogen can be used for heating purposes in residential, commercial, and industrial buildings. It can replace natural gas as a cleaner alternative, providing heating and hot water while reducing carbon emissions. This application can help to decarbonize the heating sector and contribute to achieving climate targets.
Energy Storage: Hydrogen produced through blue hydrogen processes can be used as an energy storage medium. Excess renewable energy can be used to produce hydrogen, which can be stored and later converted back into electricity or used for various applications when needed. Blue hydrogen storage offers a way to balance intermittent renewable energy generation and enhance grid flexibility.
The Blue Hydrogen is projected to be valued at USD 44.5 billion by 2030, at a CAGR of 11.9% during the forecast of 2022-2030. In terms of growth potential, blue hydrogen can play a significant role in the early stages of the hydrogen economy, bridging the gap between fossil fuels and renewable hydrogen. It can leverage existing natural gas infrastructure, which facilitates faster deployment compared to developing entirely new infrastructure for green hydrogen. As CCS technologies mature and become more cost-effective, the growth potential for blue hydrogen may increase further.
The primary source of natural gas used in blue hydrogen production is conventional natural gas reserves. These reserves consist of naturally occurring deposits of methane, which is the main component of natural gas. Conventional natural gas reserves are typically found in underground geological formations, such as reservoirs or porous rock formations.
Exploration and production activities are carried out to extract natural gas from these reserves. Once extracted, the natural gas undergoes processing to remove impurities and contaminants before being used as a feedstock in blue hydrogen production processes like steam methane reforming (SMR) or autothermal reforming (ATR).
Carbon capture technologies used in blue hydrogen production typically include the following methods:
Post-combustion capture: This method involves capturing carbon dioxide (CO2) from the flue gas emitted during the hydrogen production process. The flue gas is treated with a solvent or absorbent material, such as amines, which selectively capture the CO2. After the CO2 is captured, it is separated from the solvent and compressed for transport and storage.
Pre-combustion capture: In this approach, carbon capture occurs prior to the hydrogen production process. The natural gas feedstock is first converted into a synthesis gas (syngas), which consists of hydrogen and carbon monoxide (CO), through steam reforming or partial oxidation. The CO is then reacted with steam to produce additional hydrogen and CO2. The CO2 can be captured before the hydrogen is separated and utilized.
Oxyfuel combustion: This method involves burning natural gas in a pure oxygen environment instead of air. By using oxygen, the resulting flue gas predominantly consists of CO2 and water vapor. The CO2 can be captured from the flue gas stream using similar post-combustion capture methods as mentioned earlier.
Chemical looping combustion: This technology involves using a metal-based material as a carrier for the combustion process. Natural gas is reacted with a metal oxide, producing hydrogen and metal oxide reduced to metal. The metal is then oxidized with air, and the cycle continues. The CO2 is captured during the oxidation step.
Hydrogen storage and transportation play crucial roles in the blue hydrogen value chain by enabling the distribution, utilization, and deployment of hydrogen as an energy carrier.
Storage: Hydrogen storage is essential to bridge the gap between hydrogen production and demand. Since hydrogen is a low-density gas, it often needs to be stored in a compressed or liquefied form to achieve sufficient energy density and facilitate transportation.
Transportation: Hydrogen transportation ensures the delivery of hydrogen from production sites to end-use locations. It involves the movement of hydrogen over short or long distances, often requiring dedicated infrastructure and specialized transportation methods.
Distribution network: Building a robust distribution network for blue hydrogen is a vital component of the value chain. This involves the development of infrastructure, such as hydrogen refuelling stations for transportation applications or dedicated pipelines for industrial use.
There are several international collaborations and initiatives are focused on promoting the development and adoption of blue hydrogen. Few are mentioned below:
Hydrogen Council: The Hydrogen Council is a global initiative composed of leading companies from various industries committed to advancing the hydrogen economy. It includes major energy companies, automakers, and industrial manufacturers.
Mission Innovation Hydrogen Challenge: Mission Innovation is a global initiative that brings together countries and private sector partners to accelerate clean energy innovation. The Hydrogen Challenge, launched under Mission Innovation, aims to advance hydrogen technologies, including blue hydrogen, by promoting research, development, and demonstration projects.
European Clean Hydrogen Alliance: The European Clean Hydrogen Alliance is an initiative of the European Commission to support the development and deployment of hydrogen technologies in Europe. It brings together industry stakeholders, national governments, and research institutions to promote cooperation and investment in hydrogen projects, including blue hydrogen.
Clean Energy Ministerial (CEM) Hydrogen Initiative: The CEM Hydrogen Initiative is a global collaboration of countries and organizations committed to advancing the use of hydrogen as a clean energy source. It focuses on promoting policy cooperation, sharing best practices, and facilitating investment in hydrogen technologies.
These collaborations and initiatives demonstrate the international recognition of the importance of hydrogen, including blue hydrogen, in achieving decarbonization goals.
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