As per the report by Global Market Insights, worldwide blue H₂ market was valued $1 B in 2021 and will surpass a revenue collection of $4.5 B by 2030 with an annual growth rate of 11% over 2022 to 2030.

The market growth is driven by the rising popularity of this technology worldwide. Lately, several global industries and regulatory organizations have begun to plan the inclusion of H₂ in their energy mixes. According to International Renewable Energy Agency studies, green H₂ is two to three times more expensive than blue H₂. Similarly, the intervention of major oil firms in the creation of blue H₂ is demonstrating its potential as an effective source of energy.

Blue H₂ calls for a wide range of applications in a variety of energy-consuming sectors. In fact, H₂ fuel is expected to alter the energy business, making it more sustainable and ecologically benign. Considering these trends, along with numerous energy consulting organizations worldwide, significant players in the energy sector and several governments are taking an active interest and investing heavily in blue H₂. For instance, in October 2021, John Bel Edwards, Louisiana Governor, and Air Products, a renowned American chemical and gas company, announced the construction of a $4.5-B clean energy complex in Louisiana, to position the state as a leader in the U.S. clean energy transition.

Enlisted below are three prominent trends likely to propel the blue H₂ market share in the coming years:

Rising need for decarbonization of petroleum refineries

In the last couple of years, global economies are under pressure to consider energy market possibilities to satisfy the Paris Climate Agreement's long-term temperature goals. In consequence, blue H₂ is registering a higher demand for its carbon neutral properties as the emissions are not diffused in the atmosphere. According to research by the World Resources Institute, using new technologies, such as fuel shifting to clean H₂, heat electrification, utilization and storage of carbon capture, and heat electrification can deeply decarbonize refineries.

Driven by this growing potential of H₂ on a wider commercial scale, industry participants are essaying several initiatives that favorably affect the decarbonization of the energy sector. In November 2021, twenty-eight firms, including oil titans BP, Shell, Equinor, and TotalEnergies, announced a new global initiative at COP26, to promote the substitution of extremely polluting grey H₂ with lower-carbon H₂.

Huge investments in blue H₂ market in the MEA region

Considering the strong presence of natural gas reserves, infrastructure facilities, and the surging investments due to direct decision-making, the Gulf nations have announced ambitious plans for a H₂ economy, highlighting the potential for blue H₂.

Moreover, blue H₂ is calling for significant demand as it provides these nations with diversification as it allows the preservation of economic and political influence even in a decarbonized world. Citing an instance, the UAE declared in November 2021 that it was working on a H₂ roadmap to position the country as a H₂ leader. It also disclosed plans to establish new value chains for the export of low-carbon H₂ and its derivatives, along with the manufacturing of steel and jet fuel using H₂.

Widespread adoption of autothermal reforming technology

The blue H₂ market will witness exponential growth from autothermal reforming technology as it captures more CO₂ and is more cost-effective. It hence offers enormous potential for debottlenecking current facilities as well as constructing new and efficient production plants. As carbon capture is included in the process of autothermal reforming, it necessitates the adoption of blue H₂ for production. To illustrate, in September 2021, the development arm of Air Products & Chemicals Inc. announced plans to establish H₂ plants in Louisiana and Alberta using autothermal reforming technology.

Considering the wide potential of H₂ for applications on a wider commercial scale, various key blue H₂ market participants are favorably deploying several strategies for the decarbonization of the energy sector. This technology is also emerging as one of the most feasible solutions as opposed to fossil fuels in this modern era.