Hydrogen market growth to surge in 2023

As part of developing low-carbon hydrogen, electrolysis capacity of over 1,065 GW is now in pipeline, report says

Given that hydrogen development is used in a variety of industries, it is necessary to complete the energy transition, meet the goals of decarbonisation, and position leading businesses as market experts. According to GlobalData, a leading data and analytics company, global green hydrogen production capacity reached over 109 kilo tons per annum (ktpa) in 2022, representing a 44% increase over 2021.

GlobalData’s recent publication “Hydrogen Transition Outlook and Trends: Q1 2023,” highlights deals, trends, and investments as useful benchmarks to identify those leading companies driving the hydrogen market growth.

Andres Angulo, Energy Analyst at GlobalData, comments: “During 2022, over 393 deals related to hydrogen were closed, representing a significant increase compared to 277 deals registered in 2021. This shows an upward trend in the low-carbon hydrogen market development, which could be decisive in achieving over 111 million tons per annum (mtpa) capacity worldwide by 2030. However, the partnerships represented 66% of the deals last year, and the number of deals decreased after Q2 2022 to numbers even below those seen in the same quarter in 2021. This could have been due to the companies trying to strengthen their core business and diversify the investment risk given the global economic situation.”

Green hydrogen trends

Investment and capital raising were crucial to the growth of the hydrogen economy in 2022, despite the high number of partnerships between businesses and government agencies. The value of mergers and acquisitions (M&A) transactions reached $24.4 billion last year, a 288% increase from 2021 levels. Venture finance deals, on the other hand, increased in value from $595.23 million to over $3,001.1 million.

In addition to the United States, Denmark, Egypt, Canada, and Portugal, over 111.9 mtpa of low-carbon hydrogen capacity was announced in 2022. Green Hydrogen International (GHI) announced in Canada two significant green hydrogen projects with a 43 mtpa capacity each and a single participant. Production is anticipated to begin in 2030.

With 56.3 mtpa of current and planned capacity, GHI, the Suez Canal Economic Zone, the New and Renewable Energy Authority, the Sovereign Fund of Egypt, and Egyptian Electricity Transmission Co. are the global leaders in low-carbon hydrogen. An electrolysis capacity of over 1,065 GW is currently in the pipeline as part of the development of low-carbon hydrogen and electrolysis as a key green production technology. This is basically being delivered by assembling organizations like Hydrogenics, Nel ASA, ThyssenKrupp, ITM Power, HydrogenPro, Enapter and Fitting Power.

Companies like Globeleq Africa, Linde, John Wood Group, ThyssenKrupp, H2-Industries, Alcazar Energy, and Samsung Engineering took advantage of the rising demand for hydrogen capacity during the previous year and rose to the top of the engineering, procurement, and construction (EPC) industry for environmentally friendly projects.

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