Brown Hydrogen Market Outlook - 2030
The brown hydrogen market was valued at $30.4 billion in 2020, and is projected to reach $48.9 billion by 2030, growing at a CAGR of 4.7% from 2021 to 2030. Brown hydrogen is produced using coal gasification process. In coal gasification, coal is converted from its solid state into a gas. The gasification process breaks down coal into its chemical constituents, which includes methane gas. Coal is exposed to oxygen and hot steam under high pressure and temperatures. Gasification systems include partial oxidation of the coal with steam and oxygen in a high-temperature and elevated-pressure process. This results in creation of synthesis gas, which is a mix of carbon monoxide (CO) and hydrogen with carbon dioxide and some steam. The synthesis gas referred as syngas further undergoes reaction with water to increase the hydrogen yield. The gas can be cleaned in conventional ways for recovering hydrogen and the high concentration carbon dioxide stream which is sent for disposal after isolation.
The brown hydrogen market is driven by factors such as cheap raw material, less production cost, and availability of raw materials. In addition, the alternative process of production of hydrogen are comparatively more costly. For instance, the production cost of green hydrogen is more than brown hydrogen. Furthermore, the brown hydrogen production method i.e., coal gasification method is well established especially in Asia-Pacific. However, the market is hindered by high carbon foot print through coal gasification. In addition, the development of the renewable energy-based hydrogen i.e., green hydrogen market is also anticipated to hinder the market growth. On the contrary, the growing traction for coal gasification with carbon capture and storage is expected to offer lucrative opportunity during the forecast period.
The brown hydrogen market is segmented on the basis of technology, end-use industry, and region. On the basis of technology, the market is segregated into coal gasification with carbon capture storage and coal gasification without carbon capture storage. By end-use industry, the brown hydrogen market is divided into refining, chemicals, iron and steel, and others. Region-wise, the brown hydrogen market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The brown hydrogen market analysis covers in-depth information of the major industry participants. Some of the major players in the brown hydrogen market include Air Products, Air Liquide, Sasol, Sinopec, Iwatani Corp, J-Power.
The key players adopt numerous strategies, such as business expansion, acquisition, partnership, and agreement, to stay competitive in the brown hydrogen industry.
For instance, the alliance of Kawasaki Heavy Industries, Ltd.; Iwatani Corporation; Shell Japan Limited; Electric Power Development Co.,Ltd. started hydrogen production from the coal gasification and hydrogen refining facility in the Japan-Australia Hydrogen Energy Supply Chain project. J-Power is in charge of the coal gasification and hydrogen refining facility. This project is in partnership with numerous companies such as Kawasaki Heavy Industries, Ltd.; Iwatani Corporation; Shell Japan Limited; Electric Power Development Co. Ltd.
Brown Hydrogen Market, by Technology
By technology, the coal gasification without carbon capture storage segment garnered market share of 97.9% in 2020, in terms of volume and expected to grow at a CAGR of 9.7% during the forecast period. Coal gasification without carbon capture storage garnered highest share in 2020 and expected to grow at a CAGR of 9.7% during the forecast period in terms of volume. It has garnered 97.9% share in 2020. As of current scenario, for hydrogen production there are a greater number of coal gasification plants without carbon storage, especially in China in Asia-Pacific region. The coal gasification without carbon capture storage technology is economic, which is boosting the demand for hydrogen production.
Coal Gasification with carbon capture storage is projected as the most lucrative segment.
Brown Hydrogen Market, by End-Use Industry
By end-use industry, the chemical segment garnered market share of 47.8% in 2020, in terms of revenue and expected to grow at a CAGR of 10.0% in terms of volume during the forecast period. Some of the major manufacturers of ammonia are China, India, Russia, the U.S., Indonesia, Saudi Arabia, and others. In addition, some of the major consumers of ammonia are China, Eastern Europe, South West Asia, the U.S., Middle East, and others. Factors propelling the demand for ammonia growth of agricultural industry, rising use in the refrigeration systems and mining industry, and others.
By End Use Industry
Chemical is projected as the most lucrative segment.
Brown Hydrogen Market, by Region
Region-wise, Asia-Pacific is expected to grow at a CAGR of 9.8%, in terms of volume during the forecast period. This is attributed to presence of key brown hydrogen industrial participants and rising consumer base in China,
Asia-Pacific holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
Key benefits for stakeholders
- The report outlines the current market trends and future scenario of the market from 2021 to 2030 to understand the prevailing opportunities and potential investment pockets.
- The brown hydrogen market size is provided in terms of revenue and volume.
- The report provides an in-depth analysis of the market along with the current and future brown hydrogen market trends.
- This report highlights the key drivers, opportunities, and restraints of the market along with impact analysis during the forecast period.
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- The study provides a comprehensive analysis of the factors that drive and restrain the brown hydrogen market growth.
Impact of COVID-19 on the Brown Hydrogen Market
- The outbreak of COVID-19 in China and its spread across numerous countries around the world halted the manufacturing activities of industrial sectors, which correspondingly hampered brown hydrogen manufacturing as well.
- The raw material procurement was also challenged owing to outbreak of COVID-19.
- The impact of the COVID-19 on global supply chains will have the major impact on hydrogen technologies, for which a well-managed supply chain and huge capital are needed for demonstration.
Brown Hydrogen Market Report Highlights
By End-Use Industry
Key Market Players
Electric Power Development Co., Ltd. (J-Power), Air Liquide, Iwatani Corporation, SINOPEC GROUP, Air Products Inc., Sasol
As per perspective of CXOs of industrial participants, the market is expected to witness growth especially from Asia-Pacific. There increase in traction for brown hydrogen from countries such as India, Australia and Japan. As per India’s ministry of coal, it permitted a concession of 20% on coal revenue share for gasification in a step toward using cleaner sources of fuel, with a target to gasify 100 million tons of coal by 2030.In addition, Coal India Limited (CIL) is planning to set up a coal-gasification plant with an expected investment of $794 million in the Dankuni coal complex in West Bengal. Furthermore, CIL is also planning to invest another $3,422 million to build six other coal gasification plants with collective capacity of 6 million tons.