REPORT SCOPE
INTRODUCTION
OVERVIEW
The purpose of this report is to measure and forecast the demand for hydrogen as a chemical constituent and as an energy source. The report defines individual markets and technical applications for hydrogen. In regard to cutting-edge developments, areas such as nanotechnology and biological processing, where considerable research dollars have been expended, are covered.
Among the key trends in the hydrogen business are pipeline development and plant modernization. Hundreds of millions of dollars in projects to build new hydrogen production facilities, and new pipelines, have been announced in the last several years. Coincidentally, though, there have been significant cutbacks in government funding for hydrogen-related research.
THE FUEL OF THE FUTURE
Much has been said about hydrogen being the “fuel of the future” due to its abundance as an element and its nonpolluting combustion products. Less has been said about the fact that other forms of energy must be used to produce the hydrogen which will be used as fuel. Most hydrogen is bound up in compounds such as methane or water or more complex sources such as coal, and energy is required to break the hydrogen free from these compounds, then to separate, purify, compress, and/or liquefy the hydrogen for storage and transportation to usage points. Widespread production, distribution and use of hydrogen will require many innovations and investments to be made in efficient and environmentally acceptable production systems, transportation systems, storage systems and usage devices.
Hydrogen is primarily used in petroleum refining and as a chemical intermediate, particularly in the manufacture of agricultural fertilizers. Hydrogen has some utility as a fuel source in transportation, but numerous technical and economic barriers still exist to widespread deployment of either hydrogen-powered engines in vehicles or fuel cell-powered vehicles that use stored hydrogen.
Hydrogen is an energy carrier, much like electricity, and therefore requires a primary energy source to produce it. One of the primary economic barriers to more widespread use of hydrogen as a fuel is the fact that it requires significant energy inputs to produce hydrogen. In the U.S. virtually all hydrogen is made from natural gas, giving rise to significant quantities of unwanted and undesirable carbon dioxide (CO2) emissions.
Despite the unfavorable economics for uses of hydrogen other than refining and as a chemical intermediate, interest in it has always remained strong because hydrogen in transportation would not directly generate greenhouse gases. And if the hydrogen can be obtained via “renewable” resources such as wind or solar power or even biological processing, it would truly be emission-free.
The cheapest way to produce hydrogen is natural gas reforming or coal gasification at a central plant. Hydrogen, particularly high purity hydrogen, can be obtained indirectly from electricity via water electrolysis, a usually costly process due to the high energy input. Because all current processes to produce hydrogen generate significant amounts of CO2 emissions, large-scale hydrogen production from natural gas and coal would be environmentally acceptable only if combined with carbon capture and storage technologies.
During, and in many cases beyond, the forecast period of this report, some essential technologies that could be deployed to produce hydrogen include fossil sources with carbon sequestration (coal and natural gas), renewable energy sources (solar, wind, and hydroelectric), biological methods (biomass and biological), and nuclear energy.
SCOPE OF STUDY
This BCC study focuses on key hydrogen technologies and applications. It provides data about the size and growth of both captive and merchant hydrogen markets, company profiles, patent trends and industry trends. Cutting-edge developments, research priorities, and potential business opportunities are a key focus.
The report focuses on the following:
- The structure of the hydrogen industry, its driving forces, competitive aspects, market segmentation, distribution channels, pricing, and technology.
- Analysis of global market trends, with data for 2009, estimates for 2010, and projections of compound annual growth rates (CAGRs) through 2015.
- Assessment of hydrogen demand, with 5-year forecasts.
- Reviews of global environmental and energy regulations.
- Company profiles.
- Patent activity.
INTENDED AUDIENCE
With its broad scope and in-depth analyses, this study will prove to be a valuable resource, particularly for anyone involved with or interested in hydrogen as a chemical intermediate or an energy resource. It will be particularly useful for researchers and laboratory and government personnel working in research or company settings as well as business professionals such as marketing managers, strategic planners, forecasters, new product and business developers who are involved with most aspects of the hydrogen industry. It also will be of value to potential investors and members of the general public who are interested in acquiring a business-oriented view of the use of hydrogen in practical applications. The projections, forecasts, and trend analyses found in this report provide readers with the necessary data and information for decision-making.
METHODOLOGY
Both primary and secondary research methodologies were used in preparing this study. Research methodology was both quantitative and qualitative in nature, the latter relying on Delphi-style forecasting techniques. Initially, a comprehensive and exhaustive search of academic literature discussing hydrogen applications was conducted. These secondary sources include hydrogen and fuel cell journals and related books, trade literature, marketing literature, other product/promotional literature, annual reports, security analyst reports, and other publications. A patent search and analysis was conducted. Other sources include magazines, academics, technology suppliers, technical experts, trade association officials, government officials, and consulting companies.
INFORMATION SOURCES
As is the case with most industries and economic sectors, data resources analyzing the applications and markets for hydrogen have become vast. There are numerous peer reviewed, referred journals devoted solely to hydrogen technology, not to mention environmental journals that report on larger systems issues or strategic/economic issues in environmental management. Data sources that were employed include press releases on company websites covering application news, company news, marketing news, and product news as well as brochures, product literature, magazines, technical journals, technical books, marketing and other promotional literature, annual reports, security analyst reports, and other hydrogen-specific business digest publications. An extensive patent analysis was conducted to gauge technological innovation and to determine research activity as it applies to new product development.
ANALYST’S CREDENTIALS
The author of this report, Project Analyst Kevin Gainer, holds B.A. and M.A. degrees in quantitative economic analysis and technology forecasting and has 25 years of economic, industry intelligence, and market research experience. He is the author of six published books and dozens of technical papers, analyses, and studies published in conference proceedings, including many unpublished proprietary analyses within corporations. He has worked as a Research Editor and Project Analyst at BCC Research since 1985, and has authored numerous BCC technology market research reports and periodicals.
BCC ONLINE SERVICES
BCC offers an online information retrieval service. BCC’s home page, located at
www.bccresearch.com, enables readers to:
- Examine BCC’s complete catalog of Market Research Reports and place direct orders
- Subscribe to any of BCC’s many industry newsletters
- Read announcements of recently published reports and newly launched newsletters
- Register for BCC’s well-known conferences
- Request additional information on any BCC product
- Take advantage of special offers.
DISCLAIMER
The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature. This information does not constitute managerial, legal, or accounting advice; nor should it serve as a corporate policy guide, laboratory manual, or an endorsement of any product, as much of the information is speculative in nature. The authors assume no responsibility for any loss or damage that might result from reliance on the reported information or its use.
