The global grey hydrogen market was valued at $131.8 billion in 2022, and is projected to reach $174.9 billion by 2032, growing at a CAGR of 2.9% from 2023 to 2032.
Grey hydrogen is a type of hydrogen that is produced from fossil fuels, typically natural gas, through a process called steam methane reforming (SMR). This process produces hydrogen gas and carbon dioxide (CO2) as a byproduct. Grey hydrogen is the most common type of hydrogen produced globally and is widely used in industrial applications such as petroleum refining, ammonia production, and methanol production. Coal is one of the primary feedstocks for producing grey hydrogen through the coal gasification process. Coal gasification involves reacting coal with steam and oxygen to produce a mixture of hydrogen, carbon monoxide, and carbon dioxide. The hydrogen is then separated and purified for use in various applications. However, the production of grey hydrogen from coal has several environmental drawbacks. Firstly, coal is a fossil fuel, and its extraction and use generate significant carbon dioxide emissions, which contribute to climate change.
Grey hydrogen is typically used as the source of hydrogen gas in this process, as it is the most cost-effective method of producing hydrogen at scale. Methanol production is a significant consumer of hydrogen, with around 8-10 tons of hydrogen needed to produce 1 ton of methanol. However, as with ammonia production, it is important to note that the production of methanol using grey hydrogen generates significant carbon emissions, which contribute to climate change. Grey hydrogen can also be used in other refinery processes, such as hydrotreating and hydrocracking. Grey hydrogen is utilized in the desulfurization process, where sulfur compounds are removed from petroleum products. This is particularly important for meeting stringent environmental regulations on sulfur content in fuels, such as the sulfur limits in gasoline and diesel set by various countries.
Liquid hydrogen is used in aviation and especially aerospace sectors. Moreover, large-scale production of synthetic fuels derived from hydrocarbons and electric vehicles operating on fuel cells contributes to the rising demand for the product. Such demand potential must be met and thus needs speeding up grey hydrogen production. Grey hydrogen can be used as a fuel in transportation, particularly in heavy-duty vehicles such as buses and trucks. As the world seeks to reduce greenhouse gas emissions from the transportation sector, there is Increasing interest in fuel cell vehicles that use grey hydrogen as a fuel. Blue hydrogen has a similar production process to that of grey hydrogen with carbon capture in the process.
The carbon capture rate is assumed to be 98% and 68% with methane leakage of about 0.2% to 1.5% for grey and blue hydrogen, respectively. Green hydrogen is the cleanest hydrogen that is produced through electrolysis which has no leakage and zero carbon emissions only when the source of electricity is renewable sources such as solar or wind power. Green hydrogen is made by using clean electricity from surplus renewable energy sources, such as solar or wind power, to electrolyze water. Electrolyzers use an electrochemical reaction to split water into its components of hydrogen and oxygen, emitting zero-carbon dioxide in the process. This acts as a restraining factor for the grey hydrogen market growth.
Despite the environmental concerns associated with grey hydrogen, it still has important applications in various industries. For example, it is used in the production of fertilizers, which are essential for modern agriculture. Grey hydrogen can also be used as a feedstock for the production of other chemicals, such as methanol and synthetic fuels. In summary, grey hydrogen is a widely used type of hydrogen that is produced from fossil fuels. It has applications in power generation and various industrial processes, but its use contributes to CO2 emissions and climate change. As a result, there is growing interest in developing cleaner methods of producing hydrogen, such as green hydrogen.
The grey hydrogen market size is studied on the basis of source, production method, application, and region. By source, the grey hydrogen market is bifurcated into natural gas, coal, and others. Depending on the production method, the market is further classified into steam reformation, gasification, and others. By application, the market is divided into ammonia production, methanol production, refineries, chemical production, and others. By region, the grey hydrogen market analysis is done across North America, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa).
The major players operating in the grey hydrogen industry are Linde plc, Air Liquide, Orsted A/S, Iberdrola SA, Air Products & Chemicals, Inc., Indian Oil Corporation Ltd., Reliance Industries, China National Petroleum Corporation, Exxon Mobil Corporation, and Messer Group GmbH. The drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights the key areas of investment. In addition, it Includes Porter’s five forces analysis to understand the competitive scenario of the industry and the role of each stakeholder. The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of key players to Increase their market share and sustain the intense competition in the industry.
Grey hydrogen is a type of hydrogen that is produced from fossil fuels, typically natural gas, through a process called steam methane reforming (SMR). This process produces hydrogen gas and carbon dioxide (CO2) as a byproduct. Grey hydrogen is the most common type of hydrogen produced globally and is widely used in industrial applications such as petroleum refining, ammonia production, and methanol production. Coal is one of the primary feedstocks for producing grey hydrogen through the coal gasification process. Coal gasification involves reacting coal with steam and oxygen to produce a mixture of hydrogen, carbon monoxide, and carbon dioxide. The hydrogen is then separated and purified for use in various applications. However, the production of grey hydrogen from coal has several environmental drawbacks. Firstly, coal is a fossil fuel, and its extraction and use generate significant carbon dioxide emissions, which contribute to climate change.
Grey hydrogen is typically used as the source of hydrogen gas in this process, as it is the most cost-effective method of producing hydrogen at scale. Methanol production is a significant consumer of hydrogen, with around 8-10 tons of hydrogen needed to produce 1 ton of methanol. However, as with ammonia production, it is important to note that the production of methanol using grey hydrogen generates significant carbon emissions, which contribute to climate change. Grey hydrogen can also be used in other refinery processes, such as hydrotreating and hydrocracking. Grey hydrogen is utilized in the desulfurization process, where sulfur compounds are removed from petroleum products. This is particularly important for meeting stringent environmental regulations on sulfur content in fuels, such as the sulfur limits in gasoline and diesel set by various countries.
Liquid hydrogen is used in aviation and especially aerospace sectors. Moreover, large-scale production of synthetic fuels derived from hydrocarbons and electric vehicles operating on fuel cells contributes to the rising demand for the product. Such demand potential must be met and thus needs speeding up grey hydrogen production. Grey hydrogen can be used as a fuel in transportation, particularly in heavy-duty vehicles such as buses and trucks. As the world seeks to reduce greenhouse gas emissions from the transportation sector, there is Increasing interest in fuel cell vehicles that use grey hydrogen as a fuel. Blue hydrogen has a similar production process to that of grey hydrogen with carbon capture in the process.
The carbon capture rate is assumed to be 98% and 68% with methane leakage of about 0.2% to 1.5% for grey and blue hydrogen, respectively. Green hydrogen is the cleanest hydrogen that is produced through electrolysis which has no leakage and zero carbon emissions only when the source of electricity is renewable sources such as solar or wind power. Green hydrogen is made by using clean electricity from surplus renewable energy sources, such as solar or wind power, to electrolyze water. Electrolyzers use an electrochemical reaction to split water into its components of hydrogen and oxygen, emitting zero-carbon dioxide in the process. This acts as a restraining factor for the grey hydrogen market growth.
Despite the environmental concerns associated with grey hydrogen, it still has important applications in various industries. For example, it is used in the production of fertilizers, which are essential for modern agriculture. Grey hydrogen can also be used as a feedstock for the production of other chemicals, such as methanol and synthetic fuels. In summary, grey hydrogen is a widely used type of hydrogen that is produced from fossil fuels. It has applications in power generation and various industrial processes, but its use contributes to CO2 emissions and climate change. As a result, there is growing interest in developing cleaner methods of producing hydrogen, such as green hydrogen.
The grey hydrogen market size is studied on the basis of source, production method, application, and region. By source, the grey hydrogen market is bifurcated into natural gas, coal, and others. Depending on the production method, the market is further classified into steam reformation, gasification, and others. By application, the market is divided into ammonia production, methanol production, refineries, chemical production, and others. By region, the grey hydrogen market analysis is done across North America, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa).
The major players operating in the grey hydrogen industry are Linde plc, Air Liquide, Orsted A/S, Iberdrola SA, Air Products & Chemicals, Inc., Indian Oil Corporation Ltd., Reliance Industries, China National Petroleum Corporation, Exxon Mobil Corporation, and Messer Group GmbH. The drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights the key areas of investment. In addition, it Includes Porter’s five forces analysis to understand the competitive scenario of the industry and the role of each stakeholder. The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of key players to Increase their market share and sustain the intense competition in the industry.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the grey hydrogen market analysis from 2022 to 2032 to identify the prevailing grey hydrogen market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the grey hydrogen market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report Includes the analysis of the regional as well as global grey hydrogen market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Source
- Natural Gas
- Coal
- Others
By Production Method
- Steam Reformation
- Gasification
- Others
By Application
- Ammonia Production
- Methanol Production
- Refineries
- Chemical Production
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Messer Group
- Air Liquide
- Iberdrola S.A.
- Orsted A/S
- Exxon Mobil Corporation
- Reliance Industries Ltd - (RIL) India
- Linde plc
- Air Products & Chemicals Inc.
- China National Petroleum Corporation
- Indian Oil Corporation Limited
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: GREY HYDROGEN MARKET, BY SOURCE
CHAPTER 5: GREY HYDROGEN MARKET, BY PRODUCTION METHOD
CHAPTER 6: GREY HYDROGEN MARKET, BY APPLICATION
CHAPTER 7: GREY HYDROGEN MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report, titled, 'Grey Hydrogen Market,' The grey hydrogen market was valued at $131.8 billion in 2022, and is estimated to reach $174.9 billion by 2032, growing at a CAGR of 2.9% from 2023 to 2032.Grey hydrogen refers to hydrogen produced through the process of steam methane reforming (SMR), which is currently the most common method for hydrogen production. In SMR, natural gas (mostly methane) is reacted with steam under high temperatures and pressure to produce hydrogen gas and carbon dioxide (CO2) as a byproduct. The CO2 emitted during this process is released into the atmosphere, contributing to greenhouse gas emissions. Coal gasification is a process used to produce grey hydrogen from coal. The process involves reacting coal with steam and oxygen to produce a mixture of hydrogen, carbon monoxide, and carbon dioxide. Grey hydrogen is often the most cost-effective option for chemical production, but it generates significant carbon emissions. Grey hydrogen is typically used in those processes, as it is cost-effective and readily available. Grey hydrogen finds application in numerous other chemical processes. It can be used as a reducing agent, reactant, or feedstock for various reactions, such as hydrogenation, dehydrogenation, and synthesis of organic and inorganic compounds.
Naphtha reforming is a process in refineries where naphtha, a light petroleum fraction, is converted into higher-octane gasoline blending components and other valuable products. In naphtha reforming, the primary reaction involves the rearrangement and reconfiguration of hydrocarbon molecules to produce higher-octane compounds. This process typically employs a catalyst, such as platinum or platinum-rhenium, at high temperatures and pressures. Although grey hydrogen is not directly used in naphtha reforming, hydrogen is an essential component of the process. The hydrogen needed for naphtha reforming is typically obtained from other sources within the refinery, such as steam methane reforming (SMR) or other hydrogen production units. These hydrogen production units can generate grey hydrogen as a byproduct, which can then be used in naphtha reforming. Grey hydrogen is often produced through steam methane reforming (SMR), where natural gas reacts with steam to produce hydrogen and carbon dioxide. This grey hydrogen can be utilized within the refinery for various applications, including hydrotreating, hydrocracking, and other refining processes. However, it is not directly used in naphtha reforming itself.
The grey hydrogen market size is studied on the basis of source, production method, application, and region. By source, the grey hydrogen market is bifurcated into natural gas, coal, and others. Depending on the production method, the market is further classified into steam reformation, gasification, and others. By application, the market is divided into ammonia production, methanol production, refineries, chemical production, and others. By region, the grey hydrogen market analysis is done across North America, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa).
Europe is a large consumer of the product, and a major quantity of domestically produced grey hydrogen is used within the region. The presence of automobiles, construction, textiles, power generation, and building heating and cooling sectors drives the demand for grey hydrogen in the region, owing to their benefit in reducing carbon footprint. The use of grey hydrogen in Europe is driven by the need for cost-effective and reliable sources of hydrogen for industrial processes, particularly in the chemical, refining, and steel sectors. However, as with other regions, there is growing interest in the production of green hydrogen in Europe, particularly in countries with significant renewable energy resources such as Spain, Portugal, and Denmark. The European Union has set ambitious targets for the development of a hydrogen economy, with a goal of producing up to 40 gigawatts of renewable hydrogen by 2030 and up to 100 gigawatts by 2040. This will require significant investment in renewable energy infrastructure and the development of hydrogen storage and transport infrastructure.
Many countries in the region are investing in the development of hydrogen infrastructure to support the growth of the hydrogen economy. The majority of hydrogen production in these countries comes from oil refining and chemical production, with natural gas as the primary feedstock. Countries such as Saudi Arabia, Qatar, and the United Arab Emirates are significant producers of hydrogen, with the majority of hydrogen production coming from oil and gas processing. These countries have significant reserves of natural gas and are investing in the development of hydrogen infrastructure to support the growth of the hydrogen economy.
The major players operating in the grey hydrogen industry are Linde plc, Air Liquide, Orsted A/S, Iberdrola SA, Air Products & Chemicals, Inc., Indian Oil Corporation Ltd., Reliance Industries, China National Petroleum Corporation, Exxon Mobil Corporation, and Messer Group GmbH. The drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights the key areas of investment. In addition, it includes Porter’s five forces analysis to understand the competitive scenario of the industry and the role of each stakeholder. The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of key players to increase their market share and sustain the intense competition in the industry.
Key findings of the study
- By source, natural gas is projected to grow at the highest CAGR of approximately 3.1%, in terms of during the grey hydrogen market forecast period.
- By the production method, the steam reformation segment dominated the grey hydrogen market share by over 50% in 2021.
- By application, the ammonia production segment is projected to grow at the highest CAGR of approximately 3.2%, in terms of during the grey hydrogen market forecast period.
- By region, Asia-Pacific dominated the grey hydrogen market and is expected to grow at a CAGR of 3.1% during the forecast period.
Companies Mentioned
- Messer Group
- Air Liquide
- Iberdrola S.A.
- Orsted A/S
- Exxon Mobil Corporation
- Reliance Industries Ltd - (RIL) India
- Linde plc
- Air Products & Chemicals Inc.
- China National Petroleum Corporation
- Indian Oil Corporation Limited
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 400 |
| Published | May 2023 |
| Forecast Period | 2022 - 2032 |
| Estimated Market Value ( USD | $ 131.8 billion |
| Forecasted Market Value ( USD | $ 174.9 billion |
| Compound Annual Growth Rate | 2.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
