Green Hydrogen Markets: A Good Place to Invest?

Green hydrogen market trends indicate that it is a growing sector that investors may have to pay closer attention to in the future. It is estimated that the green hydrogen market will expand at a rate of 14.5% from 2021 to 2028, to reach an estimated market size of USD 2,720 million. There are numerous indicators that the demand and supply of green hydrogen will fulfill these estimations. A strong is the Green Hydrogen Catapult, a UN initiative focused on bringing down the cost of green hydrogen. In 2021, Green Hydrogen Catapult set the goal of doubling the number of green electrolyzer installations present from 25 gigawatts to 45 gigawatts by the year 2027. 

Green hydrogen is a valuable source of renewable energy at a time when there is an increasing demand for alternative sources of energy across the globe. The growing need for suitable forms of renewable energy across the world will play a large role in influencing Green Hydrogen Market Trends. Experts believe that as awareness of green hydrogen and its benefits become more known, the market will expand sizeably. 

Favorable Policy

The policies being introduced by governing bodies globally benefits the green hydrogen market in two ways. Firstly, there is a greater attempt to introduce regulations that reduce the impact of heavy industry. Second, regulations that attempt to reduce carbon emissions are being complemented with regulations and policies that favor the use of hydrogen in particular. This is because hydrogen has been acknowledged by governments and industries as an important pillar that can help countries reach net-zero emissions. Further, hydrogen can store energy from renewables with hydrogen-based fuels, allowing it to be utilized in areas where renewable energy resources are low.

Since hydrogen is seen as a suitable source of renewable energy, governments and institutions are adopting legislative proposals that can facilitate its growth. For example, The United Arab Emirates is aiming to hold a fourth of the global hydrogen market by 2030 and has created policies that align with doing so. In another example, Japan has promised to accelerate its hydrogen research and fund its promotion and use over the next 10 years. Countries all over the world are realizing the value of green hydrogen as a potential source of energy. For this reason, sizeable markets and innovation can be found in several countries such as North America, Germany, France, the U.K., Netherlands, Switzerland, Belgium, Italy, and Spain. In the eastern continents, growth and favorable circumstances green market hydrogen trends can be found in countries such as China, Australia, Japan, India, Singapore South Korea, Malaysia, Thailand, and Indonesia. 

Investing In the Green Hydrogen Market

How can one begin investing in the green hydrogen market? An important thing to understand is the segmentation of the industry. There are several avenues of green hydrogen that investors can choose from. Individuals need to understand the various types and conduct their market research to determine the segments they should invest in. Two important segment options for investment are: 

• Technology and Innovation: There is an increasing focus on innovation and technological advancements in the green hydrogen market. Governments are steadily increasing their investments in this segment as well. The tech and innovation hydrogen segment holds many forms of hydrogen production and research. Examples of these are alkaline electrolyzers, proton exchange membranes, and solid oxide electrolyzers. The Proton exchange membrane will likely hold the largest market share due to some of its functional benefits. Investors looking to capitalize in this sector should attempt to understand the external factors that are driving the various methods of research. 
  
• End-Use Industries: The green hydrogen market plays a role in several industries such as petrochemicals, food and beverages, medical, mining, and more. Investors should market research the external forces driving the market trends in each industry before coming to a decision.
  

CONCLUSION

Current opinions and projections of green hydrogen market trends indicate that it is a rich source of potential investments for interested individuals and organizations. The positive attributes of hydrogen that make it a suitable alternative source of energy have made it appear favorable in the eyes of governments and institutions. The hopes placed on green hydrogen as a way to reduce carbon fossil fuels can be seen by recent legislation and policy, its increasing global market presence, and an increase in technology & innovation funding. Many countries have set ambitious goals to achieve by 2027-2030, and it is an ideal time for investors to cash in on this opportunity.