Report highlights the growth in demand for hydrogen fuelNovember 12, 2014
Hydrogen production is getting better and the demand for this energy is growing
Freedonia, an industry market research firm, has released its new World Hydrogen Market report. The report identifies several trends that have emerged in the clean energy space, focusing on the hydrogen market. Hydrogen is quickly becoming a more popular alternative to conventional energy sources and the demand for fuel cell systems is growing. The report notes that growth is being driven by advances made in hydrogen production methods and technology.
Hydrogen production expected to increase by 3.5% annually through 2018
The report forecasts that hydrogen production will increase by 3.5% every year through 2018, reaching 290 billion cubic meters produced by that time. Advances in petroleum hydrotreating and hydrocracking refining operations are driving growth ahead. The forthcoming release of fuel cell vehicles has had a major impact on hydrogen production advancements. As these vehicles near launch, better ways to produce hydrogen fuel have become necessary. The popularity of these vehicles will likely affect the future of hydrogen production.
Emissions regulations are helping drive up the demand for hydrogen
Over the past 20 years, many countries have adopted strict emissions regulations. Some of these regulations have targeted transportation specifically, forcing automakers to develop cleaner vehicles in order to continue participating in their favored markets. Many automakers have been investing heavily in hydrogen production technology, hoping to help establish a working infrastructure before their new zero-emission vehicles are commercialized.
China may soon be the world’s largest producer of hydrogen fuel
The report notes that China is home to the largest growth in the demand for hydrogen. While the United States is expected to remain one of the world’s largest consumers of hydrogen fuel, China may soon become the world’s largest producer. The Chinese government has set its sights on the transportation space, calling for cleaner vehicles, especially those equipped with fuel cells. As such, new hydrogen production technology has emerged in China in order to support the growing need for clean transportation. The report predicts that demand for hydrogen in other countries will grow slowly through 2018.