Green Hydrogen Perspectives from 2023 onwards

The generation of green hydrogen has become one of the most demanded energy solutions on the road to decarbonisation, the reduction of polluting emissions and the conservation of the environment. Relevant studies, such as that of Transparency Market Research, indicate that the green hydrogen market will grow by 50% over the next decade, increasing the size of the market from the current 2.1 billion euros to 133.58 billion euros by 2031. The electrolyser market will also continue to grow exponentially.

Numerous green hydrogen installations are currently being developed around the world, with strong support in particular from European governments who, through incentive policies, are seeking to ensure their growth in a global market, boosting both production and demand for clean hydrogen and advancing research and innovation projects.  The Green Deal programme, Fit for 55 and the hydrogen strategy enable the EU to be a driving force in the hydrogen market. 

According to a report by the consultancy DNV, Europe is a pioneer in this technology and hydrogen is expected to account for 11% of its energy mix by 2050. Europe is also leading the way in the production of electrolysers, followed by Asia, Australia and North America. Of the fourteen factories that will produce gigawatt-scale electrolysers, eight are located in Europe.

Spain is one of the countries with the greatest potential for green hydrogen production worldwide. Of all green hydrogen projects worldwide, 20% are being developed in our country, placing us only behind the United States. In addition, we are the fifth country in the world in wind energy, and the eighth in renewable generation. The main current Spanish projects focus on industrial and mobility applications, promoting its use as a renewable fuel in land, sea and air transport.

H2Med, the first renewable hydrogen corridor in the European Union, was recently inaugurated, making Spain the world’s first renewable hydrogen hub. H2MED will have the capacity to transport up to 2 million tonnes per year (MTPA) of renewable hydrogen, which is 10% of Europe’s expected consumption in 2030, according to REPowerEU.

The large-scale investments and strategic alliances taking place in the market also forecast strong growth prospects for the green hydrogen market. Mergers, acquisitions and partnerships are also an important part of the growth generation mechanism.