BLUE HYDROGEN MARKET Challenges and Opportunities

One of the major challenges currently faced by this market is the high costs associated with the production of blue hydrogen and the carbon capture technologies involved. Producing blue hydrogen at scale requires natural gas as the primary feedstock which is then processed through steam methane reforming to produce hydrogen and capture carbon emissions. However, the carbon capture, utilization, and storage technologies needed to capture these carbon emissions from natural gas processing are still quite expensive.

Market Opportunity - Technological advancements enhancing the efficiency of hydrogen production methods

One of the major opportunities for the future growth of the market lies in continued technological advancements that can enhance efficiency and lower the costs of hydrogen production methods, especially those involving carbon capture. The adoption of emerging technologies like carbon capture and utilization that convert captured carbon into value-added products can boost the business case for carbon capture investments.