Paul Rodden • Season: 2023 • Episode: 250
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In episode 250, KBR gets a big win with HyNet and could hydrogen be a $328 billion market by 2030. I'll go over all of this and give my thoughts on today's hydrogen podcast.
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KBR gets a big win with HyNet and could hydrogen be a $328 billion market by 2030. I'll go over all of this and give my thoughts on today's hydrogen podcast.
Okay, I'm going to actually skip the intro today so we can listen to a quick word from the sponsor of today's podcast. From water electolyzers to flow batteries and fuel cells, Nafion™ Proton Exchange Membranes play a major role in advancing the Hydrogen Economy. Through their high conductivity, superior strength, and chemical durability, Nafion™ membranes provide the performance needed to make green hydrogen safer, more sustainable, and more affordable. Learn how Nafion™ ion exchange materials support the decarbonization of energy across the globe at www.nafion.com. Now back to the show.
In a press release on September 26. KBR wins blue hydrogen technology and engineering contract for EET hydrogen facilities. KBR announced that it had been awarded a blue hydrogen process technology and front end engineering design or feed contract by EET hydrogen for its planned HPP2 low carbon hydrogen facility at HyNet, the UK is leading industrial decarbonisation project. Under the terms of the agreements KBR will provide technology licensing, proprietary engineering design and equipment catalyst and feed for up to 1000 megawatt plant capacity to be located at the Stanlow Manufacturing Complex. HyNet includes hydrogen production and supply and carbon capture and sequestration CCS to support the decarbonisation of hard to abate sectors in a region of concentrated conventional energy usage. And a quote from Jay Ibrahim president at KBR of sustainable technology solutions. We are excited to support EET hydrogen on this significant decarbonisation project, KBR will apply its proprietary hydrogen knowledge and technology to help deliver the largest blue hydrogen energy transition project in the UK.
He continues to say this strategic win attests to our commitment towards helping our clients with both their ESG and business objectives. KBR has been a leader in engineering design process, technology development, commercialization and plant design solutions for over 50 years. Okay, so a huge congratulations to KBR on this massive and historic win, as the feed engineering firm for HyNet. Hynet is a gargantuan opportunity to leverage a goldmine of existing infrastructure and drive the hydrogen economy forward in an area that very much needs it. A gigawatt facility on the western shores of the UK near Liverpool is vital as the UK continues to struggle with energy supply. Now the UK has begun to pull back on their aggressive push to remove hydrocarbons from their energy supply. And so now with the HyNet project moving forward, it will help continue their decarbonisation goals without continuing to downgrade the electricity supply.
Next in a research report from Fairfield and posted in benzinga.com, unlocking the future global hydrogen market set to reach $328 billion by 2030. A new report has shed light on the exciting prospects of the hydrogen market, revealing its immense potential as a pivotal subset of the clean energy sector, with the current global market worth approximately $185 billion. The report predicts that the hydrogen industry is poised for remarkable growth and could reach a staggering $328 billion By the end of 2030. Hydrogen already produced on a commercial scale to date has become a global industrial powerhouse, providing a wide range of applications. While currently accounting for less than 5% of the world's energy consumption. Hydrogen is on the brink of a transformative journey towards becoming a cornerstone of clean energy transitions. With aggressive government initiatives and burgeoning technological advancements.
It is expected to play a pivotal role in potentially contributing to a quarter of the world's energy consumption by 2050. Key hydrogen technologies including its use in steel manufacturing, shipping vessels and aviation are rapidly advancing and hold the promise of revolutionising industries. hydrogen powered trucks, airplanes and ships are on the horizon, while its applications extended producing fertilizers, heating homes, generating power, balancing electricity grids, and supporting heavy industries such as steel and cement production. And so in the report, there are five key findings. The first is projected growth, the hydrogen market is projected to reach $328 billion by the end of 2030 the second is sustainability drive. The global shift towards sustainability and clean energy is creating a robust foundation for the growth of the hydrogen ecosystem. The third is government support, government support and initiatives will play a pivotal role in nurturing the hydrogen industry. Number four is leading an on site production. On site captive production will continue to dominate contributing over 75% of the total hydrogen market revenue. And number five Asia Pacific dominance. The Asia Pacific region led by China maintains dominance with over 40% of the overall market share. And so what about the growth drivers? Well, the first is government commitment to sustainability. They say an increasing number of countries have committed to achieving net zero emissions with regulatory policies promoting sustainability and carbon footprint reduction exemplified by the Paris Agreement. Over 30 countries have released hydrogen roadmaps and public funding commitments exceed $300 billion by 2030.
The next growth driver is diversification by energy giants. Major energy players, like NextEra, Iberdrola, and Uniper are venturing into green hydrogen challenging the dominance of traditional oil companies. The electric vehicle boom is expected to boost hydrogen powers popularity due to its energy efficiency. The next growth driver is blue and green hydrogen production, the market is witnessing a shift towards blue and green hydrogen production, with both segments expected to experience robust growth rates from 2023 and to 2030. And the last growth driver they list is hydrogens role and transport. The transport sector including hydrogen fuel cell vehicles is set to experience significant growth due to the increasing demand for hydrogen in various industries. And on the overview of key segments, they say onsite hydrogen captive production, which Captive production for onsite consumption holds the lead with 75% of market share by value and growth opportunities across regions. They see Europe to lead Europe and North America are expected to witness substantial growth by 2030, with Europe taking the lead in planned hydrogen generation projects, and lastly, global hydrogen generation market.
The key players key players in the global market for hydrogen include Royal Dutch Shell, Totalenergies, Adani Green, Air Liquide and many others driving innovation and advancements in the hydrogen industry. The global hydrogen market is on the cusp of a transformative era, with governments industries and investors aligning to unlock its potential as a clean and sustainable energy source. As we venture into this hydrogen powered future, the possibilities are boundless, and the path to a greener world shines brighter than ever. Okay, so some interesting talking points to highlight from this overview. By now we've seen several of these research papers getting released, stating that hydrogen will be in the 300 to $500 billion range industry by 2030, and over a trillion dollar industry by 2050.
Now, I certainly believe that the potential is there to reach these numbers, but I'm skeptical that the industry will double in size in the next six years. If for no other reason than that so many of the upcoming projects still need to go through fid before they can even begin to look at profitability, and infrastructure still needs to be developed. Now, their key report findings are true and that there have been and there will continue to be a push to sustainability along with governmental support. Both of these factors will drive development and should allow for ease of access for development. But even with those roadblocks removed, technology still needs development. Supply chains still need to be established, transportation options still need to be evaluated, off takers solidified and economies of scale need to at least start to be realized. Now, it's possible that China will further dominate the market to the point that their technology saturates the markets and drives down costs to the point that makes the hydrogen economy a reality sooner than later. It happened with renewables and there's a very good chance that will happen with hydrogen. But I still believe more time is needed for the hydrogen economy to develop, because, to quote Chevron's Jeff Gustafson hydrogen is probably the biggest of all the new energy businesses, but it will take the longest to develop and will take the longest to become sustainable without significant policy support.
All right, that's it for me everyone. If you have a second I would really appreciate it if you could leave a good review on whatever platform it is that you listen to Apple podcasts, Spotify, Google, YouTube, whatever it is, that will be a tremendous help to the show. And as always, if you ever have any feedback, you're welcome to email me directly at firstname.lastname@example.org. So until next time, keep your eyes up and honor one another.
Hey, this is Paul. I hope you liked this podcast. If you did and want to hear more, I'd appreciate it if you would either subscribe to this channel on YouTube, or connect with your favorite platform through my website at www.thehydrogenpodcast.com. Thanks for listening. I very much appreciate it. Have a great day.