Market Trends of North America Liquid Hydrogen Industry
Automotive Segment to Witness Significant Growth
- North America's liquid hydrogen market is expected to grow significantly due to the rising demand for clean fuel in the automotive industry. Liquid hydrogen offers more significant advantages because of its storage and transportation qualities.
- In an automotive application, liquid hydrogen can be used as a secondary energy source without emitting any CO2 using new technologies like Proton Exchange Membrane fuel cells to produce electricity for an electric drive and a direct fuel for ICE (internal combustion engines).
- In 2022, United States has the most significant number of hydrogen fueling stations in the North American region. There are about 54 operational hydrogen refueling stations in the country, followed by Canada (9 stations). Furthermore, as per the road map to a US hydrogen economy, 4,300 large hydrogen fueling stations in the United States were expected by 2030. This would be close to 70 times the number of operational large fueling stations in 2019.
- Moreover, according to United States Fuel Cell & Hydrogen Energy Association (FCHEA), by the year 2030, the country is expected to have 4,300 large hydrogen fueling stations. However, by 2050, transportation fuels are expected to account for the greatest volume of United States hydrogen demand becuase pollution all around the globe is increasing from vehicles and transportation over time. Pollution from fossil fuel-powered vehicles is emitted directly into the environment, which causes health risks.
- For instance, in May 2022, Air Liquide opened a new liquid hydrogen production facility and logistics center in Las Vegas last week, aiming to capitalize on emerging demand for liquid hydrogen as a fuel in the mobility sector. Hydrogen is gaining traction as a fuel within the shipping and logistics arena because it does not require downtime for charging like electric-powered vehicles. The new plant is capable of producing enough hydrogen to fuel 40,000 vehicles, using steam methane reforming, which derives hydrogen from natural gas. Such projects are likely to create positive demand for liquid hydrogen in automotive segment.
- Therefore, based on the above-mentioned factors, automotive segment is expected to witness significant demand in the North America liquid hydrogen market during the forecast period.
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United States to Dominate the Market
- The growth of the oil and gas downstream sector in the North American region is expected to impact the demand for hydrogen during the forecast period positively. As of August 2023, the United States refinery net input of hydrogen capacity stands at 7,099 thousand barrels.
- The shale revolution in the United States has resulted in an unprecedented oil refining capacity creation and expansion, primarily along the Gulf Coast. As a result, steady growth in the number of projects and investments has been witnessed in the oil and gas sector. Hydrogen is used to remove the sulfur content from the fuels produced in a chemical separation process called hydro-desulphurization.
- Also, the United States Energy Information Administration (EIA) reported the net input of hydrogen in oil refining as 80,919 thousand barrels, recording a growth of 5.2% as compared to 2021 levels. Hydrogen is also used extensively in the generation of ammonia and methanol and in providing industrial heat for chemicals and industrial applications.
- The United States has been at the forefront of hydrogen and related technology R&D, from its inception in the space program to enabling technology commercialization in transportation, stationary power, and portable-power applications. Over the years, the Department of Energy (DOE) has established robust R&D activities on hydrogen and related technology aligned with several statutory authorities, including the Spark M. Matsunaga Hydrogen Research, Development, and the Energy Policy Act of 2005 (EPACT).
- Air Products, in October 2022, planned to invest about USD 500 million to build, own and operate a 35 tonne/day facility to produce green (renewable) liquid hydrogen at a greenfield site in Massena, New York, as well as liquid hydrogen distribution and dispensing operations. Commercial operation of this facility is expected to commence in 2026-2027.
- In January 2024, Plug Power secured over USD one billion in government funding. It commenced producing liquid green hydrogen at its Georgia plant. Such developments are likely to create positive impact on the North America liquid hydrogen market during the forecast period.
- Therefore, based on the above-mentioned factors, United States is expected to dominate the liquid hydrogen market in North America during the forecast period.
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