Hydrogen Energy Storage Market Trends

Growth Drivers

• Government decarbonization targets: Around the world, countries are beginning to adopt hydrogen storage as a strategy to fulfill their targets for net-zero emissions. The goal of the 2022 REPowerEU Strategy was to produce 10 million tons and import 10 million tons by 2030. About 10% of the EU's energy demands are expected to be met by renewable hydrogen by 2050, greatly reducing the carbon footprint of energy-intensive industrial operations and the transportation sector. These supportive policies will stimulate further investment in new hydrogen storage infrastructures as part of a clean energy system and the decarbonization of industry.
• Growing industrial hydrogen demand: Industrial decarbonization is the overarching driver for investment in hydrogen storage. The demand for hydrogen worldwide increased to about 97 million tons in 2023 and nearly 100 million tons in 2024. The demand corresponding to oil refining and ammonia production, and as companies transition from grey hydrogen to low-carbon hydrogen, storage solutions will ensure supply reliability and that there is energy available to maintain industrial operations. For example, in 2023, the production of low-emission hydrogen stayed below 1% of the total hydrogen produced worldwide. The transition will require hydrogen storage solutions at scale to include compressed gas tanks, liquid hydrogen storage, and underground caverns, with the continuous nature of industrial energy demands.
• Growth of hydrogen mobility and fuel cells: As hydrogen mobility grows across fuel cell vehicles, buses, trucks, trains, and ships, hydrogen storage opens new opportunities for those looking to capitalize on hydrogen. Hydrogen refueling stations have a need for efficient storage solutions, which can manage these quantities of hydrogen while ensuring a reliable fuel supply. With the energy potential for hydrogen and transportation quickly accelerating hydrogen adoption, especially in heavy-duty transport, the ability to provide widespread hydrogen storage opportunities is enabling rapid market growth.

Emerging Trade Dynamics in the Market

Trade Data for Containers for Compressed or Liquefied Gas

Source: WITS

Challenges

• Lack of standardization: In the hydrogen storage sector, there are no commonly agreed-upon technical norms and rules. The lack of consistent regulations impedes cross-border trade and technology transfer, and unfavorable infrastructure investment.  Inconsistency in purity requirements for various applications is also a barrier when considering logistics. Establishing standards, which will enable interoperability of markets, is important to scaling the hydrogen economy.
• Limited renewable hydrogen supply: The production of green hydrogen is extremely limited, especially if it is produced through renewable energy. According to the WTO, 96% of hydrogen produced globally is produced from fossil fuels (i.e., gray hydrogen). In addition, electrolyzer capacity is limited (total installed capacity was approximately 1.4 GW in 2023). The gap will limit the amount of low-carbon hydrogen available for storage. For as long as affordable renewable hydrogen is not widely available, the storage of clean hydrogen will be limited.