The global biohydrogen market, valued at US$ 73.4 Mn in 2023, is forecast to more than double in size, reaching approximately US$ 146.7 Mn by 2034, expanding at a CAGR of 6.5% from 2024 to 2034. This growth is driven by a global shift toward renewable energy sources amid intensifying climate change concerns and dwindling fossil fuel reserves.
A Green Alternative in a Climate-Conscious Era
The mounting impact of fossil fuel consumption on global warming has intensified the search for clean and sustainable energy sources. Biohydrogen has emerged as a promising contender. Unlike conventional hydrogen produced through fossil fuel-based processes, biohydrogen is derived from biological means—making it a low-emission, environmentally safe alternative.
Green hydrogen derived from wind and solar power is gaining attention for its vast potential in reducing greenhouse gas emissions, particularly in hard-to-abate sectors such as refineries, industrial processes, and ammonia production.
Biohydrogen: Understanding the Process
Biohydrogen production involves the utilization of renewable biomass, photosynthetic bacteria, and dark fermentation techniques. It leverages microbial metabolism to convert organic substrates into hydrogen without releasing greenhouse gases. Two key processes dominate the production landscape:
- Microbial Photosynthetic Processes: Using sunlight, algae, and bacteria convert water or organic substrates into hydrogen.
- Dark Fermentation: In this anaerobic process, bacteria ferment starches, sugars, and other organics to yield hydrogen, without requiring sunlight.
Moreover, biomass gasification—a thermochemical process using heat, steam, and oxygen—has proven to be an efficient method for hydrogen generation, utilizing agricultural and organic waste.
Market Drivers: Climate Policies and Energy Security
Several factors are fueling the rapid adoption of biohydrogen:
- Climate Change Mitigation: With rising concerns over global warming, governments are investing in net-zero targets and renewable infrastructure. Biohydrogen offers a viable path forward due to its clean production and use.
- Dwindling Petroleum Reserves: With petroleum extraction and oil well output declining globally, there is an urgent push toward sustainable energy alternatives. India’s domestic oil production, for instance, is projected to fall by over 20% by 2030.
- Rising Energy Consumption: According to the International Energy Agency (IEA), global energy consumption rose from 13,647 Mtoe in 2015 to 14,477 Mtoe in 2021. Biohydrogen is positioned to help meet this growing demand sustainably.
Regional Insights: Asia Pacific Leads the Charge
Asia Pacific emerged as the leading region in the global biohydrogen market in 2023. Countries such as Japan, China, India, and South Korea have outlined aggressive hydrogen strategies. These nations are:
- Scaling investments in green hydrogen infrastructure
- Launching pilot projects such as India’s 1,500 MW Nathpa Jhakri Hydro Power Station, producing 14 kg of hydrogen daily
- Increasing renewable capacity to support electrolysis-based hydrogen production
Japan’s revised Basic Hydrogen Strategy targets hydrogen supply growth from 3 million tons by 2030 to 20 million tons by 2050, setting a strong precedent for other countries.
Challenges: Infrastructure and Cost Barriers
Despite strong growth projections, the biohydrogen industry faces notable obstacles:
- High Production Costs: Electrolysis equipment and renewable energy inputs significantly raise capital expenditure.
- Infrastructure Limitations: Many developing countries lack the necessary systems for biohydrogen production, storage, and transportation.
- Policy Gaps: A globally unified regulatory framework for biohydrogen production and trade is still in development.
Competitive Landscape: Major Players and Recent Developments
Key companies like ExxonMobil Corporation, Linde Group, Air Products and Chemicals, Inc., BP, Shell Plc, and Chevron Corporation are driving innovation in the biohydrogen value chain. These firms are actively pursuing:
- Investments in electrolyzers and renewable hydrogen facilities
- Strategic partnerships and R&D in clean fuel technologies
- Regional expansion to tap into emerging market demand
In April 2024, H2Carrier proposed two offshore wind farms in Norway to produce green hydrogen aboard floating vessels. Likewise, White Martins, a Linde subsidiary, announced a new 5MW electrolyzer in Brazil to serve the local glass industry—signaling industrial-scale applications of biohydrogen.
Outlook: The Road Ahead for Biohydrogen
As climate action intensifies and petroleum dependency declines, biohydrogen stands at the forefront of the next energy revolution. Its potential to serve multiple industries—from automotive to chemicals—positions it as a cornerstone in the future clean energy mix.
With continued investment, policy support, and technology development, the biohydrogen market is set to play a pivotal role in global decarbonization efforts by 2034 and beyond.
