Dublin, Aug. 02, 2023 (GLOBE NEWSWIRE) -- The "United States Green Hydrogen Market - Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Electrolyser Technology, By Application, By Source, By Region and Competition" report has been added to ResearchAndMarkets.com's offering.
The United States Green Hydrogen market is poised for substantial growth in the forecast period up to 2028. With the nation's potential to produce over 17 million metric tons of green hydrogen annually by 2050, as projected by the Department of Energy's National Renewable Energy Laboratory (NREL), the future looks promising for this clean energy source.
Green hydrogen is produced through electrolysis, utilizing renewable energy sources like wind and solar power. Its early-stage development is expected to accelerate rapidly in the coming years as industries seek to decarbonize and reduce greenhouse gas emissions.
With the potential to replace fossil fuels in various applications, including transportation and industrial processes, numerous green hydrogen projects are already underway in the United States, with hydrogen fuel cell electric vehicles, refueling stations, and hydrogen's utilization in industrial processes at the forefront.
Additionally, state and federal policies, grants, and incentives further promote the growth of the green hydrogen market, setting the stage for a cleaner, more sustainable energy future in the United States.
Decarbonization goals are Increasing the Demand for Green Hydrogen in Region
Decarbonization goals represent the targets set by governments, organizations, and companies to reduce their carbon emissions and achieve net-zero emissions, or carbon neutrality, by a specific targeted year. The primary aim of these goals is to mitigate the impacts of climate change by limiting the concentration of greenhouse Green Hydrogen in the atmosphere, which is responsible for trapping heat and contributing to global warming.
Decarbonization goals are being pursued across various sectors, including energy, transportation, and manufacturing, and involve a range of strategies such as increasing the use of renewable energy sources, improving energy efficiency, and developing and deploying low-carbon technologies such as green hydrogen and carbon capture, utilization, and storage.
The pursuit of decarbonization goals is driven by the recognition of the urgent need to address climate change and its impacts, as well as the potential economic and social benefits of transitioning to a low-carbon economy. Companies and organizations that set ambitious decarbonization goals can reduce their exposure to climate risks and increase their competitiveness, while governments that pursue decarbonization policies can create jobs, stimulate economic growth, and improve public health and well-being.
Hence, it is expected that the market share of green hydrogen in the United States of America is going to rise in the forecasted period.
The rising Deployment of Renewable Energy Sources is Market Driving Factors
The increasing deployment of renewable energy sources is closely linked to the growth of the green hydrogen market, as renewable energy is a key input in the production of green hydrogen through the process of electrolysis. Electrolysis involves using electricity from renewable energy sources such as wind and solar power to split water molecules into hydrogen and oxygen.
As the deployment of renewable energy sources continues to increase, it will impact the potential for the production of green hydrogen in the USA. Such efforts can reduce greenhouse gas emissions across various sectors, including transportation, industry, and power generation.
The integration of renewable energy sources and green hydrogen can also have a significant impact on decarbonization efforts. For example, renewable energy can be used to power the production of green hydrogen, which can then be used to fuel hydrogen fuel cell electric vehicles or provide energy storage solutions.
This can help to reduce greenhouse gas emissions across various sectors, along with providing a clean and efficient energy source. Therefore, owing to the above factors, the United States ' green hydrogen market is going to rise in the forecasted period.
Growing Use of Green Hydrogen as an Energy Storage Solution is Market Growing Factor
The increasing demand for energy storage is driving the growth of the green hydrogen market, as green hydrogen has the potential to provide clean and efficient energy storage solutions.
Energy storage is becoming increasingly important as more renewable energy sources, such as solar and wind power, are being integrated into the grid. These sources of energy are intermittent and often do not match the demand for electricity, which creates a need for energy storage solutions. Green hydrogen can provide energy storage solutions by using excess renewable energy to produce hydrogen through electrolysis.
This hydrogen can then be stored and used to generate electricity when needed, providing a clean and efficient energy storage solution. Hydrogen energy storage systems have the advantage of being able to store energy for long periods of time, making them particularly well-suited for seasonal energy storage.
Hydrogen energy storage systems can also be used in conjunction with renewable energy sources to provide reliable and stable power. For example, excess renewable energy can be used to produce hydrogen, which can then be used to generate electricity during times when renewable energy sources are not available. This can help to reduce the need for fossil fuel-based electricity generation and provide a more sustainable and reliable source of power.
In addition to energy storage, green hydrogen can also be used as a fuel for a wide range of applications, including transportation, industry, and power generation. The versatility of green hydrogen as a fuel and energy storage solution makes it a promising technology for the transition to a low-carbon economy. Hence, it is expected that the market share of green hydrogen in the United States of America is going to rise in the forecasted period.
Favorable Government Policies Impacting the Market Growth
The US government has implemented several policies and incentives to support the development and adoption of green hydrogen in the country, including tax incentives, funding for research and development, public-private partnerships, renewable energy targets and incentives, carbon pricing, and regulations and standards.
These policies and incentives are critical in driving the growth of the green hydrogen market and supporting the broader transition to a low-carbon economy. The federal government provides tax credits for the production, purchase, and use of green hydrogen. The Alternative Fuel Excise Tax Credit provides a tax credit of $0.50 per gallon of green hydrogen, while the Business Energy Investment Tax Credit provides a tax credit of up to 30% for the installation of hydrogen fuel cell systems.
Such relaxation by the government is propelling the production and market share of the United States of America's green hydrogen market. Apart from these, the Department of Energy (DOE) provides funding for research and development to support the development of new technologies and processes for the production, storage, and use of green hydrogen.
Such as DOE's Hydrogen and Fuel Cell Technologies Office has several programs focused on advancing the development and commercialization of hydrogen and fuel cell technologies. Several states and cities have implemented carbon pricing mechanisms, such as carbon taxes and emissions trading systems, which incentivize the use of low-carbon fuels like green hydrogen.
The government has established regulations and standards for the production, distribution, and use of hydrogen, including the US Code of Federal Regulations and the National Fire Protection Association's Hydrogen Technologies Code. Therefore, these initiatives are propelling the demand and production of green hydrogen in the USA.
Recent Developments
- Air Products is developing a green hydrogen production facility in Louisiana, which will have a capacity of 1.2 gigawatts and produce over 30 tons of green hydrogen per day. The facility is expected to be operational by 2025 and will primarily serve customers in the Gulf Coast region.
- Plug Power's "Green Hydrogen Production Plant": Plug Power is building a green hydrogen production plant in Rochester, New York, which will have a capacity of 45 tons per day. The plant will primarily serve Plug Power's customers in the material handling and transportation industries and is expected to be operational by 2022.
- Nel Hydrogen's "Herning Hydrogen Hub": Nel Hydrogen is developing a green hydrogen production facility in Herning, Denmark, which will be powered by wind energy. The facility will have a capacity of 10 megawatts and produce 1,000 kilograms of green hydrogen per day. Nel Hydrogen is also planning to build a similar facility in the USA.
Competitive landscape
Company Profiles: Detailed analysis of the major companies in United States Green Hydrogen market.
- Iberdrola, S.A.
- Bloom Energy Corp.
- Plug Power Inc.
- Air Liquide
- Siemens Energy
- Air Products Inc.
- GKN Hydrogen
- Linde plc
- Cummins Inc.
- Getech Group plc
Report Scope:
United States Green Hydrogen Market, By Electrolyser Technology:
- PEM
- Alkaline
United States Green Hydrogen Market, By Application:
- Power Generation
- Transportation
- Industry Feedstock
- Others
United States Green Hydrogen Market, By Region:
- Northern & Eastern
- Middle & Western
- Southern
- Western
For more information about this report visit https://www.researchandmarkets.com/r/w8bpbt
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