Guidehouse Insights Anticipates Ammonia Production, Fuel Refining, and Steelmaking to Lead Hydrogen Cluster Development

Policy incentives, falling low carbon hydrogen production costs, and rising carbon prices are expected to drive low carbon hydrogen consumption growth

BOULDER, Colo., March 31, 2022 /PRNewswire/ -- A new report from Guidehouse Insights reviews global hydrogen cluster development, concentrating on low carbon hydrogen consumption growth across key industrial applications and providing regionally segmented projections for industrial hydrogen consumption through 2031.

Industrial clusters are attracting growing attention for their role in the scale-up of hydrogen technologies. Concentrations of carbon-intensive industrial facilities benefit from large demand potential and access to well-developed infrastructure. Decarbonizing these applications requires substitution with low carbon hydrogen produced using renewable electricity or from fossil fuels with carbon capture and sequestration. According to a new report from Guidehouse Insights, the ammonia industry is expected to drive emerging demand for low carbon hydrogen in the industrial sector, followed by fuel refining, and steelmaking.

"An increasing number of national hydrogen strategies and roadmaps prioritize industrial clusters for low carbon hydrogen uptake," says Jacques Moss, research analyst with Guidehouse Insights. "A pipeline of cluster projects has also begun to emerge in key global markets at various stages of implementation."

The report anticipates three main drivers for low carbon hydrogen consumption growth over the forecast period: policy incentives aimed at industrial decarbonization, falling low carbon hydrogen production costs, and rising carbon prices in major markets. Replacing existing grey hydrogen supplies with low carbon hydrogen is anticipated to account for the majority of demand alongside new projects that are intended to supply green ammonia to international markets, according to the report.

The report, Hydrogen Industrial Clusters, delivers a comprehensive overview of global hydrogen cluster development, concentrating on low carbon hydrogen consumption growth across five key industrial applications: fuel refining, ammonia production, methanol synthesis, steelmaking, and industrial heating. It provides regionally segmented projections for industrial hydrogen consumption through 2031 as well as project-level insights on hydrogen cluster growth. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 12,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Hydrogen Industrial Clusters, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:
Jennifer Peacock
+1.404.575.3859
[email protected]

SOURCE Guidehouse Insights