Future Market Snapshot

As the energy consumpation is taking at gargantual volume in current utility sector in the world, e-Hydrogen has a huge potential that would see creating a mammoth 10 trillion euro market globally. Let's see the figures below.

10 trillion

Global Market by 2050 (euro)

2trillion

European Market by 2050 (euro)

65%

share of Cost for H2 production from Electricity (EU)

650fold

Increase of EU electrolyser market (by 2030E)

8000 fold

Increase of EU electrolyser market (by 2050E)

3fold

Increase in EU renewables annual additions (35GW to 90GW)

100%

Increase in EU power demand from clean H2 (2020-50E)

1.5euro

stimated solar to clean H2 cost by Iberia Airline (per kg)

Current H2 Market

It is quite difficult to know the exact cost of hydrogen right now. Let’s imagine scenarios that millions of hydrogen fuel cell cars were on the road.

Estimated costs of hydrogen per kilogram in variety of scenarios are follows

Source Cost per kg H2
Natural Gas [ Produced via steam reforming at fuelling station] $4 – $5
Natural Gas [ Produced via steam reforming off-site and delivered by truck] $6 – $8
Wind [via Electrolysis] $8 – $10
Neucler [via Electrolysis] $7.5 – $9.5
Solar [via Electrolysis] $10 - $12
Nuclear [ via Thermochemical Cycles – assuming the technology works on a large scale] $6.5 - $8.5
Solar [ via Thermochemical Cycles – assuming the technology works on a large scale] $7.5 – $9.5
At present per kg H2 cost $4 to $12, and per gallon Gasoline cost $1.60 to $4.80.

The major future markets for hydrogen depend primarily upon 4 factors

  • The future cost of hydrogen.
  • The rate of advances of various technologies that use hydrogen.
  • Potential long-term restrictions on greenhouse gases.
  • The cost of competing energy systems.

Eleven potential major markets for hydrogen are considered, several of which represent alternative markets. Each market is characterized by several parameters that impact the choices of preferred production technologies as illustrated in Table 2 and defined below

Market Product Oxygen Use Heat Use Existing Market Site Specific User Size Steady State Storage & Distribution
Refineries Liquid Fuel No Maybe Yes No Large Yes No
Heavy Oil and Tar Liquid Fuel Maybe Yes Yes Yes Large Yes No
Coal Liquefaction Liquid Fuel Yes Yes Yes Yes Large Yes No
Atmospheric Liquid Fuels Liquid Fuel No Maybe No No Large Yes No
Biomass Fuel Liquid Fuel No Maybe No Yes Medium Maybe Yes
CarboDioxide Recycle Fuel Liquid Fuel No No No Yes Medium Yes Distribution
Chemical Chemicals No Maybe Yes No Variable Yes No
Peak Electricity Nuclear System Peak Electricity Yes Maybe No Yes Large Yes Storage
Iron Iron No Yes Yes Yes Large Yes No
Aircraft H2 Fuel No No No Yes Medium No Yes
Hydrogen Direct Transportation H2 Fuel No No No Yes Small No Yes
At present per kg H2 cost $4 to $12, and per gallon Gasoline cost $1.60 to $4.80.
Application of clean H2 | Major H2 Markets

The biggest application of liquid H2 is in aircraft and vehicle industries.

  • Commercial Jets: Commercial aircraft can be fuelled with liquid hydrogen. According to Airbus Deutschland GmbH, they are working on a project named CRYOPLANE, which aimed to build hydrogen-fuelled aircraft.
  • Hypersonic Jets: Hypersonic aircraft require liquid-hydrogen fuel. The air velocity through a ram jet requires a fuel with a very fast flame temperature and diffusion rate to ensure combustion within the engine. Hydrogen is the only option. Liquid hydrogen is also used to provide active cooling to leading aircraft surfaces to avoid melting.This market depends upon the development of these jets.
  • Electric Aircraft: Aircraft can use electric motors and hydrogen fuel cells to power propellers. These systems have potentially very high efficiencies compared with alternative propulsion systems.
  • Hydrogen Auto and Truck Transport System: Hydrogen is proposed as the ultimate transport fuel for cars, trucks, and buses. Recent reports (U.S. National Research Council 2004) describe the various scenarios. This can be considered the ultimate end state of hydrogen development if the various technical barriers are eliminated.
ELECTROLYZER MANUFACTURING CAPACITY[GW], GETTING MOMENTUM

Source: The Hydrogen Stream: Green hydrogen market could hit $850 billion in 2050

  • Green hydrogen is projected to be the leading hydrogen production method by 2039.
  • Green hydrogen market to reach a $850 billion valuation in 2050,
  • 650 GW of electrolyzer manufacturing capacity and expects cumulative sales of $2 trillion.
  • renewable hydrogen supply costs would break even at approximately 3.0 €/kg with natural gas prices at 50 €/MWh (2025 price forecast by the IEA).
  • Masdar and Airbus have agreed to support the development of the global sustainable aviation fuel market development.
  • A new wave of power plants with Hydrogen Turbines
  • Current EU primary Energy Mix consists of 2% Hydrogen(H2) share and could reach upto 15% by 2050, an 750% increase.
  • Southern Europe could be a major producer/exporter of hydrogen.