Growing application as an alternative to fossil fuel and rise in demand for sustainable power source are driving growth according to Allied Market Research.
The global hydrogen energy storage industry has been impacted by COVID-19 but forecast to grow to $25.4 billion by 2027, registering a CAGR of 6.5%, according to Allied Market Research.
Growing application as an alternative to fossil fuel and rise in demand for sustainable power source are driving growth – in tandem with robust investment and government support – but high capital cost is expected to curb growth.
Shipment cancellations, project delays and personnel travel restrictions have impacted the sector. According to a survey of the Energy Storage Association, 62% of respondents faced delays in deployment of projects.
However tax schemes and financial support from local and state government will improve the outlook in the post-pandemic period, the report adds.
The gas segment accounted for nearly three-quarters of the global hydrogen energy storage market share in 2019, and is expected to dominate by the end of 2027, spurred by huge demand from the transport sector and low storage cost of compressed hydrogen.
The solid segment would register the fastest CAGR of 9.20% throughout the forecast period, owing to increasing demand from the automotive and transport sectors.
According to the United States Department of Energy, at hydrogen flow of 10 kg/hr, the storage costs for gas and solid type are $0.9/KG and $2.1/KG, respectively. However, at hydrogen flow of 10,000 kg/hr, the storage cost for gas and solid type are $0.25/KG and $2.1/KG, respectively.
Asia-Pacific held the major share in 2019, generating nearly half of the global hydrogen energy storage market. The emerging economies in Asia-Pacific are adopting various foreign equipment, thereby improving production efficiency.
LAMEA would generate the fastest CAGR of 8.60% until 2027, due to the increase in trade fairs and exhibitions that are promoting new technologies, the report predicts.
McDermott’s CB&I Storage Solutions and New Energy Development Company recently completed engineering for two 50MW projects. Each modular, expandable hydrogen facility will produce nearly 24,000kgs per day of renewable hydrogen.
GenCell Energy has raised $14.3 million from a series of international institutional investors led by BNP Paribas through its investment arm BNP Paribas Energy Transition Fund, together with TDK Ventures and additional investors.
Edward Lees, Director of the fund, said: “The Group believes that hydrogen and fuel cells have a strong role to play in the transition to a low carbon economy, whether in mobility, in industry or in energy storage.”
SSAB, LKAB and Vattenfall have started building a rock cavern storage facility for fossil-free hydrogen gas on a pilot scale next to HYBRIT’s pilot facility for direct reduction in Luleå, North of Sweden.