Green hydrogen, produced using renewable energy, holds the key to decarbonizing sectors that cannot be easily electrified, such as petrochemicals, iron and steel, and fertilizers. The demand from these sectors, along with other potential offtakers, presents a significant opportunity, with the value pool from green hydrogen production expected to reach around EUR 500 billion by 2030.
While the potential is vast, the value chain for green hydrogen projects is still evolving. Market players are currently forming consortia to share risks, but as the market matures, roles are expected to become clearer. By the end of the decade, there will likely be a convergence toward more defined roles, with participants adopting either pure player, technology provider, or full solution provider models.
Choosing the right role and business model is critical for companies already in or considering entering the hydrogen market. Factors such as existing skills, the type of hydrogen project, geographical region, and partnership abilities must be considered. There is a limited window of opportunity for companies to shape the industry and secure a significant share of potential profits before the market becomes more established in the latter half of the decade.
