Blue Hydrogen Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Steam Methane Reforming, Gas Partial Oxidation, Auto Thermal Reforming), By Transportation Mode (Pipeline, Cryogenic Liquid Tankers), By Application (Chemicals, Refinery, Power Generation, Others) By Region & Competition, 2020-2030F

Market Overview

The Global Blue Hydrogen Market, valued at USD 18.22 Billion in 2024, is projected to experience robust expansion with a CAGR of 19.29% to reach USD 52.51 Billion by 2030. Blue hydrogen is defined as hydrogen produced from natural gas through processes like steam methane reforming, with the concomitant capture, utilization, and storage of carbon dioxide emissions. The market's expansion is driven by a global imperative for industrial decarbonization, the implementation of stringent emissions regulations, and the increasing integration of carbon capture, utilization, and storage technologies into existing hydrogen production facilities. Furthermore, supportive government policies and financial incentives are significantly propelling market adoption.

According to the Energy Institute, global blue hydrogen production capacity was 3.877 million metric tons per year in 2024. Despite these drivers, a significant impediment to market growth remains the substantial capital expenditure required for carbon capture infrastructure and the continued regulatory uncertainties surrounding long-term carbon pricing mechanisms, which affect project viability and investor confidence.

Key Market Drivers

The global imperative for decarbonization and the associated stringent climate policies represent a fundamental driver for the blue hydrogen market. Governments worldwide are increasingly implementing strategies to reduce industrial emissions and transition to lower-carbon energy carriers, positioning blue hydrogen as a viable solution given its established production pathways. According to the International Energy Agency's Global Hydrogen Review 2023, in September 2023, governments globally have committed over $170 billion in public funding to accelerate clean hydrogen development, driven by ambitious decarbonization targets. This policy support fosters project viability and attracts investment into blue hydrogen infrastructure. Concurrently, advancements in Carbon Capture, Utilization, and Storage technologies are directly enabling the scalable production of blue hydrogen. Continuous innovation in capture efficiency, transport, and secure storage significantly lowers the environmental footprint of natural gas-derived hydrogen, addressing critical emission concerns. According to the Global CCS Institute's Global Status of CCS Report 2024, in October 2024, the global pipeline of commercial CCUS facilities in operation or under development reached 628 projects, encompassing a cumulative capture capacity of over 416 million tonnes per annum, reflecting substantial progress in these essential decarbonization technologies. These technological improvements are crucial for optimizing blue hydrogen's economic competitiveness and environmental performance.

The convergence of these influential factors underpins a robust growth trajectory for the blue hydrogen sector. This is evidenced by expanding industry commitment and financial backing. According to the Hydrogen Council's Hydrogen Insights 2024 report, in September 2024, committed investments for clean hydrogen projects that reached final investment decision (FID) grew to approximately $75 billion across 434 projects. This substantial financial engagement underscores the market's response to both policy incentives and technological readiness, indicating a maturing industry poised for further expansion.

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Key Market Challenges

The substantial capital expenditure required for carbon capture infrastructure poses a significant impediment to the growth of the Global Blue Hydrogen Market. The high upfront investment associated with designing, constructing, and integrating carbon capture, utilization, and storage technologies into hydrogen production facilities creates considerable financial barriers for project developers. These elevated initial costs often render blue hydrogen projects less competitive against other energy alternatives, thereby hindering their widespread adoption and scalability. According to the International Energy Agency, in 2023, approximately USD 0.7 billion was invested globally in hydrogen supply projects incorporating carbon capture, utilization, and storage technologies. This comparatively modest investment highlights the challenges in securing the extensive capital necessary to expand blue hydrogen production, directly impacting project viability and tempering investor confidence in the sector's growth trajectory.

Key Market Trends

The blue hydrogen market is experiencing a notable shift towards specialized low-carbon derivatives and advanced production methods. A significant trend involves the growing focus on blue ammonia and methanol production for export markets. These carriers offer efficient transportation of hydrogen over long distances and leverage existing infrastructure for global trade, opening new avenues for decarbonization in hard-to-abate sectors. For instance, according to Japan's Ministry of Economy, Trade and Industry, in March 2025, a long-term fuel agreement was signed with Saudi Arabia to import 1 million tons of blue ammonia annually starting in 2026. This underscores the increasing demand from importing nations seeking to reduce their carbon footprint in power generation and industrial processes, propelling large-scale blue ammonia and methanol projects globally.

Concurrently, there is a discernable shift from traditional Steam Methane Reforming (SMR) to Autothermal Reforming (ATR) for new blue hydrogen facilities. ATR technology offers enhanced efficiency and higher carbon capture rates, often achieving more concentrated carbon dioxide streams that simplify capture and storage. This technological evolution is crucial for optimizing the environmental performance and economic competitiveness of new blue hydrogen production. According to the IEA's Global Hydrogen Review 2024, in October 2024, for fossil-based hydrogen production with carbon capture, utilization, and storage, 14% of the announced potential production had reached Final Investment Decision, reflecting an acceleration of FIDs in the preceding 12 months. This increasing commitment to advanced blue hydrogen projects is exemplified by Johnson Matthey's announcement in October 2023, where its LCH technology, incorporating autothermal reforming, was chosen for bp's H2Teesside project, a significant planned blue hydrogen facility in the UK designed to capture up to 99% of carbon emissions. This strategic adoption of ATR positions blue hydrogen as a more sustainable transitional fuel.

Segmental Insights

The Power Generation segment is rapidly expanding within the Global Blue Hydrogen Market due to its pivotal role in decarbonizing electricity supply and enhancing energy security. Blue hydrogen, produced from natural gas with integrated carbon capture and storage (CCS), offers a viable, lower-carbon alternative for generating power, aligning with global climate objectives and stringent emissions regulations. Its ability to serve as a reliable, on-demand fuel source complements intermittent renewable energy systems, thereby stabilizing grids and facilitating a smoother transition away from conventional fossil fuels. Furthermore, supportive government policies and financial incentives worldwide are stimulating investments in blue hydrogen production and its application in power facilities, accelerating market adoption and infrastructure development.

Regional Insights

Europe stands as a pivotal and rapidly expanding region within the global blue hydrogen market, driven by its firm commitment to ambitious climate objectives and energy transition. The region's dominance stems from robust policy frameworks, notably the European Commission's Green Deal and the EU Hydrogen Strategy, which actively promote low-carbon hydrogen adoption through supportive regulations and substantial investment initiatives. These strategic governmental efforts, including programs like Important Projects of Common European Interest, aim to foster a hydrogen-based economy, reducing reliance on fossil fuels and decarbonizing hard-to-abate sectors such as heavy industry and transportation across the continent. This proactive approach positions Europe as a key accelerator for blue hydrogen market development.

Recent Developments

• In June 2025, Air Products, alongside Air Products Canada Ltd. and Canadian governmental authorities, unveiled a multi-billion dollar plan for a net-zero blue hydrogen energy complex in Edmonton, Alberta. The facility, whose core construction began in 2018, is set to be operational in 2024 and will utilize advanced auto-thermal reforming (ATR) technology to capture over 95% of CO2 emissions from natural gas feedstock, storing them safely underground. This major new product launch in the blue hydrogen market aims to establish Edmonton as a hub for western Canada's hydrogen economy.

• In December 2024, Worley secured a significant engineering, procurement, and construction (EPC) contract for ExxonMobil's planned low-carbon hydrogen and ammonia facility in Baytown, Texas. This project, which aims to be among the world's largest upon startup, will produce up to 28.3 million cubic meters of low-carbon hydrogen daily while capturing over 98% of associated CO2 emissions. The collaboration with Worley represents a key advancement in the realization of this major blue hydrogen initiative, with a final investment decision anticipated in 2025 and an expected startup in 2029.

• In July 2024, Aramco solidified its commitment to the global blue hydrogen market by signing definitive agreements to acquire a 50% equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG). BHIG is a wholly-owned subsidiary of Air Products Qudra, a joint venture between Air Products and Qudra Energy. This strategic collaboration aims to foster the development of a lower-carbon hydrogen network within Saudi Arabia's Eastern Province, supporting both domestic and regional industrial customers. The partnership highlights a joint venture to expand low-carbon hydrogen production capabilities.

• In February 2024, bp announced a significant development for its H2Teesside blue hydrogen project by selecting BASF's OASE® white technology for carbon capture. This collaboration aimed to enhance the energy efficiency of the blue hydrogen production process, targeting a CO2 capture rate of up to 99.99%. The H2Teesside facility, located in north-east England, is projected to become one of the UK's largest blue hydrogen production sites, aspiring to reach 1.2 GW of hydrogen production by 2030. This initiative underscores a company's commitment to advancing cleaner energy solutions within the global blue hydrogen market.

Key Market Players

• Air Products and Chemicals, Inc.
• Equinor ASA
• Shell plc
• TotalEnergies SE
• Siemens AG
• Linde plc
• Mitsubishi Heavy Industries, Ltd.
• General Electric Company
• Iberdrola S.A.
• RWE Aktiengesellschaft

Report Scope:

In this report, the Global Blue Hydrogen Markethas been segmented into the following categories, in addition to the industrytrends which have also been detailed below:

• Global Blue Hydrogen Market, ByTechnology:

o   Steam Methane Reforming

o   Gas Partial Oxidation

o   Auto Thermal Reforming

• Global Blue Hydrogen Market, By Transportation Mode:

o   Pipeline

o   Cryogenic Liquid Tankers

• Global Blue Hydrogen Market, ByApplication:

o   Chemicals

o   Refinery

o   Power Generation

o   Others

• Global Blue Hydrogen Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Blue Hydrogen Market.

Available Customizations:

Global Blue Hydrogen Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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