Trends

Expanding use of Sustainable Green Hydrogen Fuel in the Transport Sector

• Use of sustainable green hydrogen fuel in the transport sector is flourishing as the market for fuel cell electric vehicle (FCEV) expands. The trend is mainly strong in Asia where FCEV developments are rampant.
• The global stock of FCEV almost doubled to 25,210 units towards end of 2019 compared to the stock in 2018. 12,350 FCEV were sold in the same year compared to 5,800 sold in 2018.
• The United States is at the forefront of this trend followed by Japan and Korea. Statistics show that one in three FCEVs is in the US.
• The sales of FCEVs in Asian countries such Japan, Korea, and China have been increasing amid policies stimulating adoption of green hydrogen fuel. In Germany, hydrogen trains are already operational. The country expects to have over 40 green hydrogen fuel trains by 2022 to replace diesel engines.
• Use of sustainable green hydrogen fuel in the transport sector is a trend because it is contributing to tackling air pollution. Hydrogen fuel has proved to be critical to ensuring zero emissions in mass transportation.

Sustainable Green Hydrogen as a Microgrid Fuel

• Hydrogen is increasingly evolving into a more viable microgrid fuel source. The clean energy source is gradually replacing diesel and facilitating transition to fully decarbonized power systems amid falling prices.
• According to industry experts, hydrogen is becoming popular as a microgrid fuel because of its ability to be stored for long periods and offer power at night or in winter. Hydrogen microgrids are also taunted as the lasting solution to California energy crisis.
•  Stone Edge Farm in California is at the forefront of this trend. The organization operates its own hydrogen microgrid that has enabled it to withstand the impacts of the constant raging wildfires in California.
• A housing complex in Sweden is also using a microgrid that combines a range of energy sources including green hydrogen fuel.
• Use of green hydrogen fuel microgrids is a trend because beside leaving a low carbon-footprint, it can provide power for sustained periods. Hydrogen microgrids are also becoming common as a way of helping communities and businesses become more resilient and greener.

Hydrogen Fueling Stations Popping Up

• A notable trend in the sustainable green hydrogen fuel market is the expanding infrastructure of hydrogen refueling. Big industrial players such as Shell are investing heavily in hydrogen refueling.
• In 2019, only 83 hydrogen refueling stations were operational worldwide. However, new stations have been popping up in various parts across the globe, including 36 in Europe, 38 in Asia, one in Arabian region, and 8 in North America.
• At the end of 2019, a total of 470 stations were operational across the globe. 330 of the stations were open to the public similar to conventional stations. Numerous other green hydrogen fueling stations are also in the planning stage.
•  Graphs of the regional distribution of fueling stations are presented below.
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• Majority of the hydrogen fueling stations in North American are located in California, which has 48 fully functioning stations. Mobile hydrogen fuelers are also being developed to reinforce the hydrogen infrastructure expansion.
• The increased number of sustainable green hydrogen fueling stations is one of the driving forces behind the roll out of fuel cell electric vehicle.
•  Shell is at the forefront of this trend. The company has been aggressive in installing hydrogen refueling infrastructure in California, UK, and Germany. Shell plans to install 400 stations by 2023.
• Emergence of more hydrogen fueling stations is a trend because various governments are looking for ways to encourage adoption of hydrogen fuel-powered vehicles. More hydrogen fueling stations will give people confidence that they will access hydrogen fuel conveniently.
• Global energy giants such as Shell are also seeking to be industry leaders in hydrogen fuel infrastructure.

Psychographic Profiles of the Top Sustainable Green Hydrogen Fuel Customers

Values

• A common value shared among the top customers of sustainable green hydrogen is sustainability. Ensuring that the world is sustainable is a major feature of these customers.
• Specifically, the customers are concerned about the increased levels of carbon dioxide in the atmosphere from consumption of fossil fuels. Increased carbon dioxide has been linked to environmental pollution, global warming, and climate change.
• Many countries exploring the potential of sustainable green energy are driven by the desire to decarbonize the atmosphere and create a sustainable future in terms of energy consumption.
• Another key value of the top sustainable green hydrogen fuel customers is environmental responsibility. Environmental responsibility refers to the rational and responsible use of the natural resources and avoiding destruction of the environment through utilizing clean energy to avoid polluting the environment.
• Customers of sustainable green hydrogen fuel value environmental responsibility because they do not want to pollute the environment. The fact that green hydrogen is a clean energy is a key motivating factor for customers to use it.

Attitudes

• Most top customers of sustainable green hydrogen fuel will tend to have positive attitudes towards clean energy and a negative attitude towards non-renewable fossil fuels. This is quite obvious from their preference for the clean green hydrogen fuel over other more readily available fuels like petrol, diesel, coal, and electricity.
• Producing green hydrogen through electrolysis is still prohibitively expensive. Yet, even with the current high production costs, customers still prefer it over the cheaper and more readily available options like grey and blue hydrogen or fossil fuels. The preference is driven by the strong positive attitude towards clean energy, specifically the green hydrogen, and a negative attitude towards the unclean forms of energy.
• Top customers of sustainable green hydrogen fuel tend to have a strong determination. Currently, green hydrogen fuel is still in its infancy stages.
• However, customers are determined to make green hydrogen their energy of choice in the foreseeable future despite the current challenges in producing green hydrogen such as the prohibitive costs.
• Experts note that even in the midst of uncertainties regarding the future of green hydrogen, there are more positive indications of it becoming more affordable.

Interests

• Customers of sustainable green hydrogen fuel are interested in energy solutions that guarantee sustainable costs in the long-term. The customers are keen to reap the benefits of green hydrogen when the production costs drop, thus making the fuel more affordable than the alternatives.
• Globally, there is a shift in energy consumption where demand for clean renewable energy is growing while demand for non-renewable energy is declining. This is partly driven by the declining costs of the clean renewable energy vis-à-vis the non-renewable energy.
• This implies that green hydrogen fuel customers are partly interested in enjoying the cost benefits of this form of clean energy in the long-term as they anticipate the production costs to continue falling.
• Since most of the current customers of green hydrogen are still the producers, this interest in cost efficiency is quite profound for their long-term cost sustainability.

Green Hydrogen Fuel Market

Europe

• In 2019, Europe had the largest green hydrogen fuel market share by revenue with 57%. The market growth is fueled by massive investments by European economies seeking to transition to hydrogen-based green economy.
• Among the leading countries in Europe in green hydrogen fuel use in Europe are France and Germany. For instance, Germany’s current use of hydrogen equals approximately 55 TWh.
• The demand for green hydrogen fuel in Germany is also expected to increase by 10 TWh by 2030 because of market ramp-up impetus. Distribution of green hydrogen fuel for the transport sector in Europe is mainly done through hydrogen refueling stations.
• France has invested €7 billion in developing hydrogen industry with a target of 6.5 GW of installed capacity by 2030.
• The broader Europe region has a target of 40 GW production capacity of green hydrogen fuel by 2030.

North America

• Another leading market for green hydrogen fuel is North America with the second largest market share by revenue. The two leading countries in the region are the US and Canada. The growth in the region is spurred by the implementation of clean energy policies.
• In the US, California leads in market share following aggressive de-carbonization targets. The country produces approximately 11.4 million metric tons of hydrogen annually valued at about $17.6 billion. However, the county lags behind the European Union in both research investments and green hydrogen fuel infrastructure.
•  Canada has numerous green hydrogen projects, both functioning and in progress. For instance, Air Liquide is constructing a PEM electrolyzer with a 20 MW capacity. Such developments are driving the green hydrogen fuel market growth in North America.
• Distribution of green hydrogen fuel in the region is mainly through fueling stations and on-site use.

Asia Pacific

•  Asia Pacific is the other leading geography in green hydrogen fuel use with the third largest market share by revenue. The region remains a high-potential market considering that it is the fastest growing. Estimates show that Asia’s capacity will reach 10 GW over the coming decade.
•  Japan is one of the major growth drivers in the region. The country is the most advanced green hydrogen fuel market in the globe. Japan is a leader in hydrogen fuel-cell vehicle development spearheaded by companies such as Honda and Toyota.
• Commercially, Toshiba is building a green hydrogen plant with an estimated capacity of 10 MW. The government is also funding various projects and investing in research and development.
• Distribution in Asia Pacific is mainly through on-site use and green hydrogen fueling stations.