Blue Hydrogen Market Size - By Application (Petroleum Refining, Chemical and Others), By Technology (SMR, ATR, Partial Oxidation), Regional Outlook & Forecast, 2024 – 2032

Blue Hydrogen Market Size

Blue Hydrogen Market was valued at USD 2 billion in 2023 and is anticipated to grow at a CAGR of over 9.8% during 2024 to 2032. refers to hydrogen produced from natural gas using a process called steam methane reforming (SMR) or auto-thermal reforming (ATR), combined with carbon capture and storage (CCS) technology to reduce the carbon emissions associated with the production process. It significantly reduces CO? emissions, making it a cleaner alternative and can be scaled up relatively quickly using existing natural gas infrastructure, providing a bridge solution towards a low-carbon economy.
 

The adoption of blue hydrogen is gaining momentum globally, driven by supportive government policies, investments, technological advancements, and the need for sustainable and low-carbon energy solutions. Governments across various countries are providing financial incentives, subsidies, and grants to support the development and deployment of blue hydrogen projects, thereby augmenting the industry landscape.
 

Regulatory frameworks that set emission reduction targets and carbon pricing mechanisms encourage the adoption of blue hydrogen. Carbon taxes and cap-and-trade systems will make low-carbon hydrogen more competitive which will stimulate process adoption. Furthermore, significant investments from both public and private sectors are being directed towards blue hydrogen projects contributing to the business growth.
 

Blue Hydrogen Market Trends

Advancements in carbon capture and storage technologies are making blue hydrogen production more efficient and cost-effective. Innovations in capture methods, storage solutions, and utilization processes are key to reducing overall costs. Development of integrated systems that combine hydrogen production with CCS and renewable energy sources to optimize efficiency and reduce emissions. Furthermore, expanding and upgrading the infrastructure for transporting and storing both hydrogen and captured CO? is critical for scaling up blue hydrogen production will improve the business growth.
 

Blue Hydrogen Market Analysis

Based on application, the petroleum refinery segment is projected to surpass USD 2.5 billion by 2032, as refineries seek to balance production efficiency with environmental responsibility. Ongoing advancements in CCS technology, supportive regulatory frameworks, and increasing pressure to reduce emissions will drive the adoption of blue hydrogen in the refining sector. Additionally, partnerships and investments in hydrogen infrastructure will play a critical role in scaling up these initiatives.
 

Based on technology, the blue hydrogen market is segmented into SMR, ATR, and partial Oxidation. ATR is projected to grow by more than CAGR 16% by 2032. ATR integrates partial oxidation and steam reforming into a single vessel which may increase process efficiency and lower the overall complexity in the hydrogen production process. It is suitable for integration with carbon capture and storage (CCS) technologies. The greater concentration of CO_? produced during the ATR process makes the capture of CO_? more affordable and efficient than other reforming methods. Moreover, numerous initiatives undertaken by the governments, energy companies, and industry stakeholders toward ATR-based blue hydrogen projects, will enhance the technology adoption and increase production capacity.
 

North America blue hydrogen market is anticipated to grow over USD 1.5 billion by 2032. Introduction of several initiatives to promote hydrogen as part of its broader climate goals coupled with tax incentives for low-carbon hydrogen production will drive the product demand. Investments in hydrogen pipelines and storage facilities to support the transport and distribution of blue hydrogen along with development of hydrogen hubs, where production, storage, and utilization are co-located, will augment the business landscape. Moreover, major energy companies comprising Shell, ExxonMobil, and Chevron are investing in blue hydrogen projects, thereby leveraging their expertise in natural gas and CCS. 
 

Blue Hydrogen Market Share

Ongoing collaborative efforts across various sectors along with partnerships from various stakeholders, including energy companies, technology providers, financial institutions, and government bodies will drive the business scenario. These partnerships work alongside each other to combine assets, distribute risks, and use the numerous skills required in negative emissions technologies which are necessary for the production and consumption of blue hydrogen to solve the engineering and economic problems that are faced.
 

Blue Hydrogen Market Companies

Eminent players operating in the Blue Hydrogen industry are:

• Air Products Inc.
• Air Liquide
• Bechtel Corporation
• BP p.l.c.
• Eni
• Exxon Mobil Corporation
• Equinor ASA
• John Wood Group PLC
• Johnson Matthey
• MaireTecnimont Spa
• Saipem
• SK E&S CO.LTD.
• Shell plc
• Technip Energies N.V.
• TOPSOE
• thyssenkrupp Industrial Solutions AG
• Woodside
   

Blue Hydrogen Industry News

• In November 2023, Air Products and Chemicals, Inc. has announced the construction of a next-generation carbon capture and CO2 treatment facility on its Netherlands Rotterdam hydrogen production plant site, intending to commence operations in 2026. Blue hydrogen is expected to be produced for ExonMobil’s Rotterdam refinery and sent to consumers using the company’s pipeline distribution network. Additionally, the company’s linkage to the Porthos System, a consortium aimed at developing a carbon dioxide transport and storage system, will further enhance the firm’s competitive position within the industry.
   
• In December 2023, SK E&S CO. LTD associated with the local government along with international partners during the COP28 to sign a global Memorandum of Understanding for the purpose of developing the biggest low carbon hydrogen plant in South Korea. This will enable the company to take giant strides in achieving carbon neutrality while simultaneously improving its competitive edge.
   

Blue hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion & MT)” from 2021 to 2032, for the following segments:

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Market, By Application

• Petroleum refinery 
• Chemical
• Others

Market, By Technology

• SMR
• ATR
• Partial oxidation

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • Oman
  • UAE
  • Kuwait
  • Qatar
  • South Africa
• Latin America