HYDROGEN TO BECOME A PROLIFIC SERVICE INDUSTRY

A wave of green and blue hydrogen projects that are poised to be developed in coming years could unlock about $400 billion worth of spending for the service industry between 2020 and 2035, a Rystad Energy industry analysis reveals. The figure excludes separate carbon capture and storage (CCS) development contracts, which could reach almost $35 billion for Europe alone.
Of the total pipeline, Rystad Energy has recently projected that about 30 gigawatts (GW) of green hydrogen capacity is expected to be operational by 2035. Blue hydrogen initiatives are also growing in popularity, with several mega-projects being discussed at present. For all of these planned projects to be realized, substantial investments would need to be made over the next few years.
For the projected development that Rystad Energy expects through 2035, as much as $400 billion worth of investments would need to be deployed into the hydrogen market globally. Transport and infrastructure will take the largest share of the spending pie, as this market segment is forecast to reach an attractive total of $130 billion.
Facility construction costs are next on the list, with suppliers targeting an estimated $120 billion. Equipment costs will reach some $70 billion, while engineering costs and maintenance, modifications & operations (MMO) will amount to about $25 billion each. All other categories of costs are calculated at below $10 billion per segment.
“At present, hydrogen projects, especially green hydrogen, are centered in Australia and Europe. In Asia, meanwhile, Japan and Korea are looking into importing hydrogen and developing international supply chains around the gas, especially within transportation. Hydrogen is also expected to feature in China’s forthcoming five-year energy plan, as well as in the plans presented by provincial authorities in the country,” says Audun Martinsen, Head of Energy Service Research at Rystad Energy.
A wave of green and blue hydrogen projects that are poised to be developed in coming years could unlock about $400 billion worth of spending for the service industry between 2020 and 2035, a Rystad Energy industry analysis reveals. The figure excludes separate carbon capture and storage (CCS) development contracts, which could reach almost $35 billion for Europe alone.
Of the total pipeline, Rystad Energy has recently projected that about 30 gigawatts (GW) of green hydrogen capacity is expected to be operational by 2035. Blue hydrogen initiatives are also growing in popularity, with several mega-projects being discussed at present. For all of these planned projects to be realized, substantial investments would need to be made over the next few years.
For the projected development that Rystad Energy expects through 2035, as much as $400 billion worth of investments would need to be deployed into the hydrogen market globally. Transport and infrastructure will take the largest share of the spending pie, as this market segment is forecast to reach an attractive total of $130 billion.
Facility construction costs are next on the list, with suppliers targeting an estimated $120 billion. Equipment costs will reach some $70 billion, while engineering costs and maintenance, modifications & operations (MMO) will amount to about $25 billion each. All other categories of costs are calculated at below $10 billion per segment.
“At present, hydrogen projects, especially green hydrogen, are centered in Australia and Europe. In Asia, meanwhile, Japan and Korea are looking into importing hydrogen and developing international supply chains around the gas, especially within transportation. Hydrogen is also expected to feature in China’s forthcoming five-year energy plan, as well as in the plans presented by provincial authorities in the country,” says Audun Martinsen, Head of Energy Service Research at Rystad Energy.
Rystad Energy is an independent energy research and business intelligence company based in Oslo, Norway.
(Source: Rystad Energy)