Hydrogen Energy Storage Market

[226 Pages Report] The global hydrogen energy storage market is estimated to grow from USD 11.4 billion in 2023 to USD 196.8 billion by 2028; it is expected to record a CAGR of 76.8% during the forecast period. Increasing global efforts to reduce greenhouse gas emissions and combat climate change play a pivotal role. Governments and organizations are incentivizing the transition to cleaner energy sources, making hydrogen an attractive option due to its potential for zero-emission energy storage and transportation. Additionally, the integration of hydrogen energy storage with renewable energy sources such as wind and solar power addresses the intermittency challenge, making it a reliable and sustainable solution for grid stabilization.

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Hydrogen Energy Storage Market Dynamics

Driver: Renewable energy integration with electricity grid

The world confronts the complex challenges posed by climate change and endeavors to curtail greenhouse gas emissions, renewable energy sources like wind and solar power have gained significant prominence within the global energy landscape. However, these sources exhibit an inherent intermittency, generating electricity solely when the wind blows or the sun shines, thus lacking the capability to provide a consistent power supply. This intermittent nature poses a critical challenge to the stability and dependability of the electricity grid. When surplus electricity is generated from renewable sources during periods of low demand, hydrogen energy can be harnessed for the process of electrolysis, which involves the conversion of water into hydrogen gas. This hydrogen can then be securely stored for future use. In instances where electricity demand surpasses supply, particularly during peak consumption times or when renewables are unable to generate power, the stored hydrogen can be efficiently converted back into electricity through the utilization of fuel cells or alternative technologies. This process ensures a reliable source of clean and sustainable energy. The capacity to store surplus renewable energy and release it when necessary, significantly augments the grid's flexibility and reliability. It empowers utility companies and grid operators to effectively manage the fluctuating nature of renewable energy sources, thereby guaranteeing a steady and uninterrupted power delivery. Furthermore, it facilitates the seamless integration of additional renewable energy into the grid, as surplus energy can be captured and preserved for utilization during periods of diminished renewable energy generation

Restraint: Low energy density as compared to conventional fuels

Low energy density is a substantial restraint for the hydrogen energy storage market. Energy density refers to the amount of energy stored in a given volume or mass of a substance. Hydrogen, while a promising energy carrier due to its clean-burning properties and versatility, has a relatively low energy density when considered by volume. This characteristic limit the amount of energy that can be stored in a given space, making it less efficient compared to other energy storage solutions like lithium-ion batteries.

Practical limitations are posed by hydrogen's low energy density, especially in applications where space is limited, such automobiles or small energy storage systems. To store the same amount of energy as a smaller and lighter lithium-ion battery, hydrogen storage tanks or containers need to be bigger or heavier. This can make it difficult to develop and incorporate hydrogen storage systems into a variety of uses, such as portable electronics and transportation. Furthermore, the transportation and distribution of hydrogen are impacted by the reduced energy density. It frequently needs to be compressed or liquefied to be transported efficiently, which uses energy and complicates the infrastructure. Hydrogen is less economically competitive compared to other fuels due to higher costs involved with storage and distribution due to bigger storage and transit volumes.

Opportunities: Development of hydrogen infrastructure across various countries

The development of a robust hydrogen infrastructure represents a significant opportunity for the hydrogen energy storage market. This infrastructure encompasses the entire hydrogen supply chain, from production and transportation to storage and distribution. A comprehensive hydrogen infrastructure facilitates the integration of renewable energy sources into the energy mix. Hydrogen produced using renewable energy (green hydrogen) becomes more accessible when there are efficient and expansive distribution networks in place. This synergy between renewable energy and hydrogen production further accentuates the need for hydrogen energy storage. Additionally, an extensive hydrogen infrastructure fosters collaboration between various stakeholders, including governments, industries, and research institutions. These collaborations can result in the development of supportive policies, standards, and incentives, which can drive investments in hydrogen energy storage technologies. Governments may incentivize the adoption of hydrogen storage market solutions as part of their decarbonization strategies, further propelling market growth.

Challenges: Increasing investments in battery storage technologies

Battery storage prices are going down on account of technological advancements and the rising demand for electric vehicles, as battery storage is cheaper than hydrogen energy storage. Major players in Asia Pacific, Europe, and North America are focusing on increasing investments in manufacturing lithium-ion batteries to cater to the need of electric vehicles and other power applications. According to the Energy Information Administration (EIA), solar, wind, and other non-hydroelectric renewables would be the fastest growing areas of the energy portfolio for the next two years. This is expected to trigger further interest in energy storage technologies, particularly lithium-ion batteries, which are evenly poised to be more than just a player in the grid.

Hydrogen Energy Storage Market Ecosystem

The hydrogen energy storage market ecosystem is a complex and dynamic network of interconnected players and technologies working in unison to harness the potential of hydrogen as a clean and versatile energy carrier. Hydrogen production is complemented by advanced storage and transportation solutions, encompassing high-pressure tanks, pipelines, and even liquefaction processes for efficient handling and distribution of hydrogen Industries and end-users, including power generation, transportation, and industrial sectors, form the market's demand side, driving the adoption of hydrogen-based energy solutions. Moreover, government bodies, research institutions, and private entity. Prominent companies in this market include Linde plc (Ireland), Plug Power Inc. (US), ENGIE (France), Iwatani Corporation (Japan), and FuelCell Energy, Inc. (US).

The gas segment, by storage form, is expected to be the largest market during the forecast period.

This report segments the hydrogen energy storage market based on storage form into three different forms: gas, liquid, and solid. The gas storage form segment is expected to hold the largest share during the forecast period. Gaseous hydrogen storage systems tend to be comparatively lightweight and compact, rendering suitable for a diverse array of applications, encompassing both transportation and stationary energy storage.

By application, stationary power is expected to be the fastest growing during the forecast period.

This report segments the hydrogen energy storage market based on application into two segments: stationary power and transportation. The stationary power segment is expected to be the fastest growing during the forecast period. Hydrogen serves as an ideal medium for storing and supplying power in stationary settings, offering a range of advantages. One primary application of hydrogen energy storage in stationary power is as a backup or grid-balancing solution. Hydrogen can be produced during periods of excess renewable energy generation. This surplus energy can be used to electrolyze water and generate hydrogen through a process known as power-to-gas. The stored hydrogen can then be readily converted back to electricity when renewable energy generation is insufficient, providing a reliable backup power source and helping to stabilize the grid.

“Asia Pacific: The second largest region in the hydrogen energy storage market.”

Asia Pacific is expected to be the second largest region in the hydrogen energy storage market between 2023–2028, followed by North America. The Asia Pacific region is emerging as a key player in the development and deployment of hydrogen energy storage systems. Several factors contribute to this growing interest in hydrogen-based energy solutions. First, Asia Pacific countries are facing increasing energy demand, rapid urbanization, and a pressing need to reduce greenhouse gas emissions. Hydrogen energy storage offers a promising avenue to address these challenges, particularly in sectors such as transportation, where fuel cell electric vehicles (FCEVs) are gaining traction. Additionally, the region's abundant renewable energy resources, including solar and wind power, create opportunities for green hydrogen production through electrolysis. Countries like Japan and South Korea have already made substantial investments in hydrogen infrastructure and are driving innovation in the field. Collaborative efforts, government incentives, and international partnerships are further propelling the growth of the hydrogen energy storage system market in the Asia Pacific, positioning it as a pivotal player in the global transition towards a sustainable energy landscape.

Key Market Players

The hydrogen energy storage market is dominated by a few major players that have a wide regional presence. The major players in the hydrogen energy storage companies include Linde plc (Ireland), Plug Power Inc. (US), ENGIE (France), Iwatani Corporation (Japan), and FuelCell Energy, Inc. (US). Between 2018 and 2023, Strategies such as new product launches, contracts, agreements, acquisitions, and expansions are followed by these companies to capture a larger share of the hydrogen energy storage market.

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Scope of the Report

This research report categorizes the hydrogen energy storage market based on storage form, technology, application, end-user and region.

On the basis of storage form:

• Solid
• Liquid
• Gas

On the basis of technology:

• Compression
• Liquefaction
• Material based

On the basis of application:

• Stationary Power
• Transportation

On the basis of end-user:

• Utilities
• Industrial
• Commercial

On the basis of region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Recent Developments

• In April 2023, Linde plc signed an MOU with Snam to develop clean hydrogen projects and related infrastructure in Europe. Linde and Snam will work in the areas of production, distribution, compression, and storage.
• In November 2021, Iwatani Corporation of America, a wholly owned subsidiary of Iwatani Corporation, and ITM Power, the energy storage and clean fuel company, partnered to deploy multi-megawatt electrolyzer-based hydrogen energy systems in North America.
• In October 2021, Plug Power Inc. acquired Applied Cryo Technologies, Inc. (ACT).  The acquisition of ACT adds significant capabilities, expertise, and technologies to Plug Power Inc. that will help the company expand the green hydrogen ecosystem.
• In August 2021, Linde plc inked a long-term agreement with Infineon Technologies for the on-site production and storage of high-purity green hydrogen.
• In January 2021, ENGIE and Total signed a cooperation agreement to build to develop, build, and operate the Masshylia project, France’s largest renewable hydrogen production site at Châteauneuf-les-Martigues in the South region. A cutting-edge management approach will be put into practice to oversee the production and storage of hydrogen.

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