Chemical Blue Hydrogen Global Market Report 2025

The chemical blue hydrogen market size has grown exponentially in recent years. It will grow from $0.85 billion in 2024 to $1.07 billion in 2025 at a compound annual growth rate (CAGR) of 24.8%. The growth during the historic period can be attributed to net-zero and decarbonization goals, the implementation of carbon pricing and tax incentives, expansion of low-carbon industrial processes, geopolitical efforts toward energy diversification, and supportive government policies.

The chemical blue hydrogen market size is expected to see exponential growth in the next few years. It will grow to $2.56 billion in 2029 at a compound annual growth rate (CAGR) of 24.5%. The growth expected in the forecast period can be attributed to carbon emission regulations, the abundance and low cost of natural gas, rising industrial hydrogen demand, growth in domestic production, and increasing demand for low-carbon energy solutions. Key trends during this period include advancements in carbon capture and storage technologies, technological improvements in production methods, the role of blue hydrogen as a transition fuel for decarbonization, strategic collaborations and partnerships, and greater integration with renewable energy sources.

The growing demand for low-carbon energy solutions is expected to boost the expansion of the chemical blue hydrogen market in the coming years. Low-carbon energy refers to sources that emit significantly less carbon dioxide (CO₂) and other greenhouse gases compared to traditional fossil fuels. This demand is increasing as governments, corporations, and consumers aim to reduce greenhouse gas emissions and address global warming. Chemical blue hydrogen supports low-carbon energy efforts by providing a cleaner fuel option, capturing and storing CO₂ emissions during production to lower the carbon footprint of industries relying on hydrogen. For example, a report published by the UK’s Department of Energy Security & Net Zero in March 2025 indicated that low-carbon sources accounted for 65% of total electricity generation in 2024, setting a new record and marking a 4.7 percentage point rise compared to 2023. Consequently, the rising demand for low-carbon energy solutions is propelling growth in the chemical blue hydrogen market.

Leading companies in the chemical blue hydrogen market are focusing on developing advanced blue hydrogen technologies using autothermal reforming (ATR) and partial oxidation (POx) methods. Both ATR and POx are industrial processes for producing blue hydrogen, which is hydrogen generated from fossil fuels combined with carbon capture and storage (CCS) to reduce greenhouse gas emissions. In April 2023, Technip Energies NV, a France-based engineering and technology service provider for the energy sector, partnered with Casale Holding SA, a Swiss chemical manufacturer, to jointly develop and license advanced blue hydrogen technologies focused on ATR and POx processes. The partnership aims to provide scalable, low-carbon hydrogen production with carbon capture rates up to 99%, enabling large-scale and cost-effective blue hydrogen plants. Together, they offer a comprehensive package including process design, proprietary equipment, and full plant solutions, accelerating the global energy transition and supporting clients’ decarbonization goals.

In October 2024, Double Zero Holdings, a US-based investment firm, partnered with SJ Environmental to convert stranded natural gas into blue hydrogen. This collaboration targets stranded natural gas a significant environmental liability and transforms it into blue hydrogen, converting wasted methane into a valuable, low-carbon resource that supports the global shift toward cleaner energy and net-zero carbon targets. SJ Environmental, also US-based, specializes in innovative solutions for the oil and gas industry, focusing on natural gas and blue hydrogen technologies.

Major players in the chemical blue hydrogen market are Exxon Mobil Corporation, Shell plc, Uniper SE, TotalEnergies SE, BP p.l.c., Equinor ASA, Eni S.p.A., ENGIE SA, Iberdrola S.A., Suncor Energy Inc., thyssenkrupp AG, Linde plc, Mitsubishi Heavy Industries Ltd., Johnson Matthey Plc, Technip Energies N.V., Aker Solutions ASA, Petrofac Limited, Topsoe A/S, Aquaterra Energy Limited, Dastur Energy Private Limited.

North America was the largest region in the chemical blue hydrogen market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in chemical blue hydrogen report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the chemical blue hydrogen market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Chemical blue hydrogen refers to hydrogen produced from natural gas using methods like steam methane reforming, where carbon dioxide emissions are partially captured and stored through carbon capture and storage (CCS) technology. It is commonly used in chemical applications such as ammonia or methanol production and serves as a lower-emission alternative to gray hydrogen, although it is not entirely carbon-free.

The primary production methods for chemical blue hydrogen include steam reforming, coal gasification, water electrolysis, and methane pyrolysis. Steam reforming involves producing hydrogen gas by reacting hydrocarbons with steam at high temperatures in the presence of a catalyst. This process relies on various infrastructure components such as production facilities, transportation networks, storage systems, and distribution channels, serving a wide range of end users including power generation, industrial manufacturing, chemical manufacturing, and transportation sectors.

The chemical blue hydrogen market research report is one of a series of new reports that provides chemical blue hydrogen market statistics, including chemical blue hydrogen industry global market size, regional shares, competitors with a chemical blue hydrogen market share, detailed chemical blue hydrogen market segments, market trends and opportunities, and any further data you may need to thrive in the chemical blue hydrogen industry. This chemical blue hydrogen market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The chemical blue hydrogen market consists of sales of products including blue hydrogen gas, hydrogen storage systems, carbon capture and storage (CCS) equipment, hydrogen purification systems, and pipelines and compressors. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.