Market Research Report

Global Underground Hydrogen Storage Market Research Report: Forecast (2024-2030)

Underground Hydrogen Storage Market Report - By Type of Storage (Salt Caverns, Porous Media, [Depleted Gas Reservoir, Aquifer], Others (Engineered Rock Caverns, etc.)), By Hydrogen...Purity (Pure Hydrogen, Blended Hydrogen), By End Users (Energy (Power Generation & Heating), Industrial (Feedstock & Reducing Agent), Transportation (Logistics & Mobility)), Others Read more

  • Energy
  • Feb 2024
  • 205
  • PDF, Excel, PPT

Market Definition

The process of storing hydrogen produced in underground reservoirs or caverns is known as underground hydrogen storage. This method of storing hydrogen is predicted to balance the energy demand and supply, reduce volatility in energy prices in the forthcoming years, and thus advance the development of the hydrogen economy across the globe.

Market Insights & Analysis: Global Underground Hydrogen Storage Market (2024-30):

The Global Underground Hydrogen Storage Market is estimated to grow at a CAGR of around 28.45% during the forecast period, i.e., 2024-30. The continuously increasing global carbon emissions due to the incessantly fueling energy demand from the past years have directed the world’s need for clean energy. The growing global population & urbanization have also been pushing the need for clean energy with low or no carbon emissions to support day-to-day activities. As per the International Energy Agency, in 2022, the global carbon emission from energy combustion & industrial use stood at nearly 36.8 Gt, which is approximately a 0.9% increase from 2021.

Report Coverage Details
Study Period Historical Data: 2019-22
Base Year: 2023
Forecast Period: 2024-30
CAGR (2024-2030) 28.45%
Regions Covered North America: US, Canada
Europe: Germany, The UK, France, Spain, France, The Netherlands, Others
Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific
Latin America: Mexico, Brazil, Argentina, Rest of Latin America
Middle East & Africa: UAE, Saudi Arabia, Oman, Rest of MEA
Key Companies Profiled ACES Delta LLC, HyStock (A Gasunie Company), RAG Austria AG, EWE, Enagas SA, Air Liquide, Linde Plc, Engie, Uniper SE, Texas Brine Company, LLC, WSP, Hychico SA, H2eart for Europe, Atco Mining Inc., and others
Market Value USD Million/Billion

 

Hydrogen has not only proven to be an effective clean energy carrier but also portrays a considerably high energy density, around 120 MJ/kg, more than that of conventional gasoline or diesel. This notable energy density positions hydrogen as a viable option for numerous sectors, potentially offering a complete substitution for fossil fuels. Moreover, given that the current hydrogen production primarily relies on fossil fuels, there is a necessity for clean production processes.

Furthermore, the political tension and uncertainties amongst the nations around the world have created fear amongst the energy-dependent nations & resulted in volatile prices in recent years. Global disruptions such as the Russia-Ukraine war and the Israel-Hamas war have only proved the need for energy storage. The conventional production of hydrogen and the capture & storage of carbon during the process is also a viable solution only if there is a continuous supply of fossil fuels at economical prices.

With surging research & development in the application of hydrogen in various sectors, the demand for hydrogen is predicted to soar rapidly. In line with the soaring demand for hydrogen, nations across the globe have been consistently investing to develop sufficient production facilities to satiate the future demand. In 2024, a European hydrogen storage alliance, ‘H2eart for Europe,’ underlined the need for hydrogen storage facilities in Europe, considering the future rising demand for hydrogen and the under-construction of hydrogen projects.

Thus, the increasing hydrogen demand and unstable production of low-carbon hydrogen have generated the demand for storage facilities and are estimated to further stimulate the Global Underground Hydrogen Market in the forecast years.


Global Underground Hydrogen Storage Market Research Report: Forecast (2024-2030)

Global Underground Hydrogen Storage Market Driver:

Consistently Widening Horizons for End Uses of Hydrogen – Due to the current heavy demand for hydrogen, primarily as an industrial feedstock and considering its zero-emission combustion properties, hydrogen has gained considerable traction in previous years. The need for a clean alternative fuel as an energy source has been a key motivator driving research & development in the hydrogen industry for the past decade.

The evolution of hydrogen production from green & other clean energy sources has further opened new pathways for its usage, contributing to a carbon-neutral world. Hence, the utilization of hydrogen as an automotive fuel, for electricity generation, as an energy carrier and storage medium, and for heating, cooling, and decarbonizing the metal industry is flourishing globally, further driving the Underground Hydrogen Storage Market.

Global Underground Hydrogen Storage Market Challenge:

High Risk of Leakages to Hinder the Industry – The presence of microbes in the underground earth surfaces creates difficult conditions for high concentrations of hydrogen if stored in the reservoirs. These microbes react with the hydrogen and form poisonous and corrosive gases, which, in turn, deplete the surfaces of the reservoirs, hence causing leakages, further contributing to limiting the Underground Hydrogen Storage Market growth.

Global Underground Hydrogen Storage Market (2024-30): Segmentation Analysis

The Global Underground Hydrogen Storage Market study by MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment & includes predictions for the period 2024–2030 at the regional level. In accordance to the analysis, the market has been further classified as:

Based on Type of Storage:

  • Salt Caverns
  • Porous Media
    • Depleted Gas Reservoir
    • Aquifer
  • Others

Salt caverns are the proven method for hydrogen storage and thus have dominated the Underground Hydrogen Storage Market. The US, the UK, and Germany have pioneered the underground storage of hydrogen in the form of salt caverns. These salt caverns also provide high pressure to store hydrogen appropriately. Moreover, /such salt caverns are also economical to operate, have minimum leakage issues due to the compactness of salt rocks, as well as high recovery efficiency while extracting & injecting hydrogen.

Nevertheless, there are many research studies, ongoing for the viability of porous media and especially depleted gas reservoirs across the globe. If proven, this medium is estimated to notably cater to the large capacities for securely storing hydrogen and hence witness tremendous growth in the forthcoming years.

Based on Hydrogen Purity:

  • Pure Hydrogen
  • Blended Hydrogen

Pure Hydrogen segment accounts for the majority of the Underground Hydrogen Storage Market. Storing pure hydrogen is critical and risky as the majority of the hydrogen stored underground is blended, which ranges anywhere from 45 to 95% of hydrogen and the rest of other gases, such as carbon dioxide. Storing high-purity hydrogen has been the main goal of the players. However, only a few have sustained storing pure hydrogen. Moreover, the presence of microbes storing pure hydrogen reacts with microbes and forms hydrogen sulfide gas, which is corrosive and toxic, causing leakages in the reservoirs, further impacting the share of pure hydrogen in the market.

Based on End User:

  • Energy (Power Generation & Heating)
  • Industrial (Feedstock & Reducing Agent)
  • Transportation (Logistics & Mobility) 

Industrial feedstock is the key application of hydrogen to fulfill the demand in chemical manufacturing industries. With the growing chemical manufacturing hubs in regions such as China, India, Brazil, and the European Nations, the demand for hydrogen as feedstock for fertilizer, pharmaceutical, food, and other industries is anticipated to grow.

In addition to this, the national initiatives to use hydrogen feedstock for decarbonizing sectors such as the steel & cement industry, methanol production, and ammonia production would also increase the demand for industrial hydrogen and maintain the share of industrial end users in the Global Underground Hydrogen Storage Market in the forecast period.

Global Underground Hydrogen Storage Market (2024-30): Regional Projection

Geographically, Global Underground Hydrogen Storage Market expands across:

  • North America
  • Latin America
  • Europe
  • Asia-Pacific
  • The Middle East & Africa

North America currently possesses a high share of underground gas storage (UGS) reservoirs along with special underground hydrogen storage facilities. The UGS facilities across the United States and Canada would provide a perfect facility for storing hydrogen in the future when the transition to hydrogen as an energy carrier initiates. Even though there are proven UGS facilities in the region, there are global energy conglomerates along with national government support have expedited the expenditure in the construction and advancement of specialized underground hydrogen storage facilities in the region.

The United States has a notable potential for underground hydrogen storage in terms of gas storage facilities present in the country. Also, in line with the presence of many key hydrogen industry stakeholders who have heavily invested in developing a clean hydrogen economy in the nation, the demand for underground hydrogen storage could rapidly surge in the latter part of the decade.

Global Underground Hydrogen Storage Industry Recent Development:

  • 2024: H2eart for Europe, an alliance of 11 European Storage System providers across 7 countries has been formed with the combined goal of attaining EU climate targets and fostering hydrogen storage for the region. The companies include RAG Austria, Nafta, OMG, Gasunie, HGS, Teréga, Snam, Uniper, VNG, Storengy, and RWE.
  • 2023: Atco Mining Inc., announced the completion of the feasibility study and its results for its Flat Bay Salt Project in Southwestern Newfoundland, Canada. The company reported that on an optimistic level, the project could provide a total hydrogen capacity of nearly 250,000 tons in 14 salt caverns, whereas on the conservative case, the project would provide a total hydrogen capacity of at least 130,000 tons in about 7 salt caverns.

Gain a Competitive Edge with Our Global Underground Hydrogen Storage Market Report

  • Global Underground Hydrogen Storage Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
  • This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
  • Global Underground Hydrogen Storage Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

Frequently Asked Questions

   A. The Underground Hydrogen Storage Market is expected to grow at a compound annual growth rate (CAGR) of around 28.45% from 2024 to 2030.

   A. The consistently widening horizons for end uses of hydrogen is the prominent factor driving the demand for the Underground Hydrogen Storage Market from 2024 to 2030.

   A. ACES Delta LLC, HyStock (A Gasunie Company), RAG Austria AG, EWE, Enagas SA, Air Liquide, Linde Plc, Engie, Uniper SE, Texas Brine Company, LLC, WSP, Hychico SA, H2eart for Europe, Atco Mining Inc., and others, are the key stakeholders in Underground Hydrogen Storage Market

   A. Industrial (Feedstock & Reducing Agent) held the largest share in the Underground Hydrogen Storage Market in 2024.

   A. North America is predicted to offer significant growth prospects in the Underground Hydrogen Storage Market.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Global Hydrogen Industry Outlook, 2023
    1. Current Scenario
      1. Production vs Consumption (in MMT)
      2. Conventional Hydrogen Vs Clean Hydrogen
      3. Government Initiatives Towards Production of Green Hydrogen
    2. Hydrogen Value Chain Analysis
  5. Global Hydrogen Use Case Critical Analysis, 2023
    1. Current Uses (Industrial Feedstock)
    2. Future Potential (Hydrogen Economy)
  6. Global Clean (Blue + Green) Hydrogen Projects, 2023
  7. Global Underground Hydrogen Storage Consortium & Associations, 2023
  8. Global Underground Hydrogen Storage Market Dynamics
    1. Growth Drivers
    2. Challenges
    3. Impact Analysis
  9. Global Underground Hydrogen Storage Market Policies & Regulations
  10. Global Underground Hydrogen Storage Market Outlook, 2020-2030F
    1. Market Size & Analysis
      1. By Volume (Billion Cubic Meters)
    2. Market Share & Analysis
      1. By Type of Storage
        1. Salt Caverns - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        2. Porous Media - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
          1. Depleted Gas Reservoir
          2. Aquifer
        3. Others (Engineered Rock Caverns, etc.) - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
      2. By Hydrogen Purity
        1. Pure Hydrogen - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        2. Blended Hydrogen - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
      3. By End Users
        1. Energy (Power Generation & Heating) - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        2. Industrial (Feedstock & Reducing Agent) - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        3. Transportation (Logistics & Mobility) - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
      4. By Region
        1. North America
        2. Latin America
        3. Europe
        4. Asia-Pacific
        5. The Middle East & Africa
  11. North America Underground Hydrogen Storage Market Development, 2020-2030F
    1. Market Size & Analysis
      1. By Volume (Billion Cubic Meters)
    2. Market Share & Analysis
      1. By Country
        1. The US - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        2. Others - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
    3. Country-wise Readiness for Underground Hydrogen Storage
      1. The US
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      2. Canada
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
  12. Latin America Underground Hydrogen Storage Market Outlook, 2020-2030F
    1. Market Size & Analysis
      1. By Volume (Billion Cubic Meters)
    2. Market Share & Analysis
      1. By Country
        1. Argentina - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        2. Others - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
    3. Country-wise Readiness for Underground Hydrogen Storage
      1. Mexico
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      2. Brazil
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      3. Argentina
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      4. Rest of Latin America
  13. Europe Underground Hydrogen Storage Market Outlook, 2020-2030F
    1. Market Size & Analysis
      1. By Volume (Billion Cubic Meters)
    2. Market Share & Analysis
      1. By Country
        1. The UK - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        2. Germany - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        3. The Netherlands - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        4. Spain - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        5. France - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        6. Others - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
    3. Country-wise Readiness for Underground Hydrogen Storage
      1. The UK
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      2. Germany
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      3. The Netherlands
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      4. Spain
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      5. France
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      6. Italy
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      7. Rest of Europe
  14. Asia-Pacific Underground Hydrogen Storage Market Outlook, 2020-2030F
    1. Market Size & Analysis
      1. By Volume (Billion Cubic Meters)
    2. Market Share & Analysis
      1. By Country
        1. China - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
        2. Others - Market Size & Forecast in Billion Cubic Meters, 2020-2030F
    3. Country-wise Readiness for Underground Hydrogen Storage
      1. China
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      2. India
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      3. Japan
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      4. South Korea
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      5. Australia
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      6. Rest of Asia-Pacific
  15. The Middle East & Africa Underground Hydrogen Storage Market Development, 2020-2030F
    1. Country-wise Readiness for Underground Hydrogen Storage
      1. The UAE
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      2. Saudi Arabia
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      3. Oman
        1. Potential Storage Capacity
        2. Research & Development
        3. Future Hydrogen Demand in the Country
        4. Government Initiatives to Boost Hydrogen Development
        5. Others
      4. Others
  16. Global Underground Hydrogen Storage Market Key Stakeholders
    1. Hydrogen Producers
    2. Storage Facility Providers
    3. Company Profiles
      1. Advanced Clean Energy Storage I, LLC
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. HyStock (A Gasunie Company)
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. RAG Austria AG
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. EWE
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. Enagas SA
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Air Liquide
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Linde Plc
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Engie
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Uniper SE
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. Texas Brine Company, LLC,
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      11. WSP
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      12. Hychico S.A.
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      13. H2eart for Europe
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      14. Atco Mining Inc.
        1. Business Description
        2. Product & Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      15. Others
  17. Disclaimer


Underground Hydrogen Storage Market Segmentation Slide