blue hydrogen market

What Is Blue Hydrogen?

Blue hydrogen refers to the industry term used to describe hydrogen produced either by Steam Methane Reforming (SMR) or Auto Thermal Reforming (ATR), where the CO2 is captured and stored permanently underground. This results in the production of low-carbon hydrogen that eliminates CO2, which lowers the environmental impacts on the planet.

Blue hydrogen serves as a transitional or intermediate move towards a more sustainable hydrogen economy. Compared to conventional methods of hydrogen production, blue hydrogen offers a significant reduction in carbon emissions as compared to conventional methods of hydrogen production.

How Will the Market For Blue Hydrogen Grow?

The global blue hydrogen market was valued at USD 16.06 billion in 2021 and is expected to reach USD 43.79 billion at a CAGR of 11.8% during the forecast period. The market is expected to experience high growth owing to the increase in the shift from carbon-neutral alternatives, which has majorly influenced the usage of blue hydrogen in manufacturing processes, heavy industrial operations, and refining industries.

Further, growing population levels from burning fossil fuels, significant investment in R&D for better energy alternatives, and increasing government favorable support towards renewable energy sources are expected to propel the blue hydrogen market growth during the forecast period.

For instance, in March 2022, Unilever launched a new low-carbon hydrogen capture project at their UK-based manufacturing facility. Under this project, the site will be able to access both 100% hydrogen & a blend of natural gas to easily fire a boiler.

Which Is More Cost-Effective to Produce: Blue Hydrogen or Green Hydrogen?

The green process to produce hydrogen is beneficial for sustainability, however, it increases expenses. Therefore, the cost of generating green hydrogen is very high. Meanwhile, the cost of storage equipment and CO2 capture is high, leading to an increase in the fuel price. However, it at least offers low-carbon fuel generation at a lower price than green hydrogen.

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What Are the Other Colors of Hydrogen?

  1. Green Hydrogen: It is produced by splitting water into hydrogen and oxygen by electrolysis.
  2. Grey Hydrogen: It is produced from fossil fuels, primarily natural gas, through Steam Methane Reforming (SMR) or Auto Thermal Reforming (ATR).
  3. Pink Hydrogen: It is produced via electrolysis, similar to green hydrogen
  4. Yellow Hydrogen: It is produced by electrolysis which is achieved only through solar power.

Which Region Holds the Largest Market Share?

Based on geography, North America witnessed the largest blue hydrogen market share in 2021 and is predicted to maintain its dominance over the forecast period. This largest share achievement can be attributed to the early adoption of cutting-edge production facilities, rising investment in research and development, as well as greater use of hydrogen in the electric vehicle and aerospace industries in nations like the United States and Canada.

For instance, in August 2022, a new type of insurance & re-insurance facility was established by Marsh, offering insurance capacity for both existing & new blue hydrogen projects. It was developed in partnership with Liberty Specialty and AIG to offer risk coverage of up to USD 300 million for the startup and construction phases of hydrogen projects.


With growing global demand for low-carbon solutions, developments in carbon capture and storage, and rising industrial applications, the blue hydrogen market is expected to experience immense growth during the upcoming years. In addition, many companies are emphasizing collaborations and investments in this field, which promises growth opportunities in the near future. For instance, in October 2021, USD 4.5 Bn blue hydrogen energy complex project was announced by Air Products announced it’s in Eastern Louisiana. With the completion of this project, the company will be capable of producing more than 750 Mn standard cubic feet/day of blue hydrogen.

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By Ankita Padiyar

Ankita Padiyar likes to play with words! She has been working in the content industry, with expertise in SEO content, social media content, website content, blogs, and articles for over 5 years. In addition to content writing, Ankita is a content publisher too, with hands-on experience with different CMSs. She works closely with B2B and B2C companies delivering engaging content that converts viewers into customers. She believes in "Dream Big" and thrives to achieve those dreams. When she isn’t writing, you can find her spending quality time with her 2-year toddler. Also, in her free time, she loves to explore new places. Don’t miss connecting with her on LinkedIn for networking!