Hydrogen Market Trends

Increased interest in reduction of carbon footprint and achievement of net-zero carbon has fueled a significant increase in global demand for hydrogen. This gas is substituted as a direct substitute for fossil fuel in most of the heavy industries such as steel, power generation, and transport. Hydrogen is emerging as a critical component of the future sustainable energy mix as countries transition to renewable energy. 

To speed up the adoption of hydrogen, governments worldwide are establishing funds, incentives, and subsidies. Initiatives such as the EU Hydrogen Strategy, the U.S. Inflation Reduction Act, and Japan's Hydrogen Roadmap are accelerating large-scale hydrogen projects, infrastructure development, and research and development. These programs aim to promote public-private collaborations, spur international investments in hydrogen production and storage technologies, and reduce the cost of low-carbon hydrogen. 

Electrolysis technology, carbon capture, and renewable energy integration make hydrogen expensive to produce, especially green and blue hydrogen. Infrastructure issues further hinder adoption; there are still few pipelines, storage facilities, and hydrogen filling stations. Mass commercialization of hydrogen is difficult to achieve in poor nations lacking hydrogen infrastructure unless there are considerable cost reductions and improvements in the technology, particularly. 

Hydrogen can only be stored and transported liquefied at low temperature, high pressure in tanks or as a chemical carrier. Hydrogen transport cannot be scaled without the existence of hydrogen transport infrastructure worldwide, pipelines, designated shipping lanes, refueling stations, etc. Another reason is the transportation of liquid hydrogen requires super-low temperatures at -253°C, which significantly increases costs and poses technological problems. These aspects limit the utilization of hydrogen globally in international energy markets.