North America Chemical Blue Hydrogen Market Size By Technology (Steam Methane Reforming, Auto Thermal Reforming, Partial Oxidation), 2024 – 2032

North America Chemical Blue Hydrogen Market Size

North America Chemical Blue Hydrogen Market size was valued USD 310 million in 2023 and is anticipated to grow at a CAGR of 2.4% by 2032. Blue hydrogen is a type of hydrogen produced through the steam methane reforming (SMR) process, coupled with carbon capture and storage (CCS) to mitigate carbon dioxide (CO2) emissions. It can serve as a cleaner alternative to traditional hydrogen sources in the Haber-Bosch process, which synthesizes ammonia from nitrogen and hydrogen. Further, it can be utilized in the direct synthesis of hydrogen peroxide, providing a more environmentally friendly alternative to traditional production methods.
 

Hydrogen is a versatile feedstock in the chemical industry, used in various processes such as ammonia production, hydrogenation, and methanol synthesis. Blue hydrogen provides a reliable and efficient source of hydrogen, enhancing the efficiency of chemical processes, which will give a positive industry outlook. Furthermore, the production initially requires investment in carbon capture and storage infrastructure but can be cost-competitive with conventional hydrogen production methods in the long term, thereby driving the business growth.
 

Blue hydrogen can enhance energy security by diversifying energy sources and reducing dependence on imported fossil fuels, relevant for countries like the U.S. equipped with abundant natural gas resources, as they can utilize these resources for blue hydrogen production domestically. Companies in the U.S., including energy companies, industrial gas suppliers, and chemical manufacturers, are investing in blue hydrogen projects and forming partnerships to develop and deploy the technology. Furthermore, ongoing efforts to develop the infrastructure needed to produce, transport, and distribute hydrogen, including production facilities, pipelines, and storage infrastructure, will support boost the growth trajectory.
 

North America Chemical Blue Hydrogen Market Trends

Increasing investment and innovation in CCS technologies, make them more economically viable and scalable for large scale blue hydrogen deployment. Governments, companies, and research institutions are collaborating to develop and deploy CCS solutions for blue hydrogen production, thereby creating favorable market conditions for the product adoption. Rising investments for hydrogen infrastructure development including the construction of new CCS facilities along with refurbishment of existing hydrogen production facilities will drive the product penetration.
 

For instance, the Alberta Petrochemicals Incentive Program (APIP), provides an investment of more than USD 160 million for Alberta’s Recovery Plan for industrial projects adding value to natural gas production in the province. Further, it will support to strengthen, diversify and bring new opportunities across the country.
 

North America Chemical Blue Hydrogen Market Analysis

Based on technology, the market is segmented into SMR, ATR and partial oxidation. Partial oxidation is projected to grow by more than USD 400 million by 2032 on account of its ability to efficiently produce hydrogen from various feedstocks, including natural gas, coal, or biomass. Further, it provides an alternative method for hydrogen production, particularly in regions where other options including steam methane reforming (SMR) may not be suitable or cost effective. Moreover, growing investment in partial oxidation with CCS technologies can support drive innovation and technological development in the field of CCS, leading to advancements that will continue to drive the business momentum.
 

Blue hydrogen produced through SMR with CCS offers a low carbon alternative to traditional hydrogen production methods, helping industries reduce their carbon footprint. It is a well-established and mature technology used for hydrogen production, accounting for the majority of blue hydrogen production. Additionally, coupling SMR with CCS for blue hydrogen production can support leverage the existing infrastructure and expertise, thereby strengthening the market landscape.
 

The U.S. chemical blue hydrogen market is anticipated to grow by more than USD 0.26 billion by 2032 fueled by the set ambitious goals to reduce greenhouse gas emissions and growing requirement for of hydrogen as a feedstock or for process heating. Increasing support and funding for hydrogen research, development, and deployment will drive the product demand. Furthermore, introduction of programs comprising the DOE's Hydrogen and Fuel Cell Technologies Office along with various federal initiatives aim to advance blue hydrogen technologies, thereby fueling the product adoption.
 

Canada has abundant natural gas resources, that serve as a feedstock for blue hydrogen production. Established expertise in natural gas extraction and processing, enables the country to become a significant producer of blue hydrogen, thereby creating significant growth prospects. Furthermore, growing support and funding for hydrogen research, development, and deployment with introduction of initiatives & funding programs comprising the Hydrogen Strategy for Canada and the Clean Growth Program aim to accelerate the blue hydrogen development across the country.
 

North America Chemical Blue Hydrogen Market Share

Air Products & Chemicals, Air Liquide, Bp p.l.c, Shell and Linde are some prominent players operating in the industry. Growing research and development activities aimed at advancing carbon capture technologies, leveraging hydrogen as a clean energy source for chemical applications will further support improving efficiency and reduce costs. Additionally, the manufacturers may license or transfer their technologies to other companies in exchange for royalties or other benefits. This allows them to monetize their intellectual property and expand their market reach.
 

North America Chemical Blue Hydrogen Market Companies

Eminent players operating in the North America Chemical Blue Hydrogen industry are:

• Air Liquide
• Air Products and Chemicals, Inc.
• BP p.l.c
• Bechtel Corporation
• Exxon Mobil Corporation
• Equinor ASA
• Linde plc
• Shell plc
• Technip Energies N.V.
• TransCanada PipeLines Limited
   

North America Chemical Blue Hydrogen Industry News:

• In October 2023, Air liquid announced the design and operation of a low carbon hydrogen production and distribution facility in Quebec, Canada.  Investment of over USD 200 Million, the production platform in line with the industrial and port zone's drive will support decarbonize the industry. Additionally, the group will offer a sustainable, reliable and competitive solution to its customers, thereby expanding its market presence.
   
• In May 2022, Bp along with Linde announced its CCS project to decarbonize the Texas Gulf Coast. The project will include low carbon hydrogen and CCS production. It is set to start by 2026, aiming to store 15 MMT of CO2 per year across multiple sites. Further, the hydrogen produced will be sold to customers coupled with Linde’s hydrogen pipeline network to enable the production of low carbon chemicals and fuels.
   

North America Chemical Blue Hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “MT & USD Billion” from 2019 to 2032, for the following segments:

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Market, By Technology, 2021 – 2032 (MT & USD Billion)

• Steam Methane Reforming
• Auto Thermal Reforming
• Partial Oxidation

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico