| Summary: What are the different industrial uses of hydrogen? What is the outlook for hydrogen consumption by 2050? Could hydrogen revolutionize the entire industrial sector with its wide-ranging applications? Below is a round-up article showcasing hydrogen’s vast and growing uses across various industrial sectors. |
An Introduction to Hydrogen Growth Trends
As of 2024, the global hydrogen market was valued at approximately USD 204.5 billion and is projected to grow at a compound annual growth rate (CAGR) of 12.2% from 2025 to 2034. This growth trajectory underscores hydrogen’s expanding role in the global energy landscape, driven by its potential to decarbonize various industrial sectors.
As forecasted by the Hydrogen Council, hydrogen demand is expected to skyrocket to 660 Mt by 2050, driven by global decarbonization efforts, Hydrogen is expected to supply 25% of the world’s energy needs.
Hydrogen is gaining traction as a clean energy alternative, especially in the European Union, which is leading the charge with large-scale investments and policy frameworks to achieve carbon neutrality. Similarly, the Asia-Pacific region, particularly China, Japan, and South Korea, is ramping up hydrogen adoption for industrial and mobility applications.
Here’s a look at how hydrogen became part of the industrial landscape.
What is Hydrogen’s Role in Industries?
Hydrogen as a Clean Energy Source
Hydrogen’s versatility and zero-emission potential make it a cornerstone of clean energy strategies. When produced from renewable sources (green hydrogen), it becomes a sustainable alternative to fossil fuels.
Key Applications:
- Power Generation: Fuel cells convert hydrogen into electricity with only water vapor as a byproduct. Hydrogen turbines are also replacing natural gas in power plants.
- Transportation: Fuel cell electric vehicles (FCEVs) offer fast refueling and long range. Hydrogen is also being used in buses, trains, trucks, and aircraft.
- Storage: Hydrogen stores renewable energy for long durations, helping stabilize grids powered by solar and wind.
Decarbonizing Industry and Energy
Hydrogen supports deep decarbonization in hard-to-abate sectors:
- Steel: Replaces coal in steelmaking, cutting CO₂ emissions by up to 95%.
- Chemicals: Critical for ammonia and methanol production.
- Refining: Used in desulfurization and hydrocracking to meet clean fuel standards.
Hydrogen blending in gas infrastructure is also being explored as a transitional solution.
Hydrogen in Specific Industrial Applications
1. Hydrogen in the Chemical Industry
Hydrogen is a foundational element in the global chemical industry, serving as a key feedstock in the synthesis of several vital chemical products.
Let’s look into one of the most critical industrial uses of hydrogen—ammonia production—highlighting its significance and strategic role in the sector.
a) Ammonia Production and the Haber-Bosch Process
What is the Haber-Bosch Process?
The Haber-Bosch process was developed in the early 20th century. It allows for the large-scale synthesis of ammonia (NH₃) by combining nitrogen (N₂) from the air with hydrogen gas (H₂) under high pressure and temperature in the presence of a metal catalyst (usually iron-based).
Equation:
N₂+3H₂→2NH₃
Why is this Important?
Ammonia is essential for the production of:
- Fertilizers (urea, ammonium nitrate)
- Explosives
- Cleaning products
- Synthetic fibers and plastics
What is Hydrogen’s Role in Ammonia Synthesis?
Hydrogen is not just a supporting player—it’s a core reactant. The purity and consistency of hydrogen are critical in industrial applications of hydrogen, particularly in the production of ammonia. The chemical reaction cannot proceed efficiently without a reliable hydrogen supply, affecting yield and quality.
To meet the required production volumes, hydrogen is typically sourced from:
- Natural gas steam reforming (dominant method)
- Coal gasification (in some regions)
- Electrolysis of water (gaining traction as green hydrogen)
Today, more than 80% of global ammonia production is used in fertilizers, directly supporting the global food supply.
According to MarketsandMarkets, the global demand for hydrogen in ammonia production continues to surge, driven by agricultural demands and the global push toward food security.
b) Methanol Synthesis: Another Pillar of Hydrogen’s Industrial Applications
Methanol (CH₃OH), often dubbed the “building block” of the chemical industry, is another major product synthesized using hydrogen. Methanol is used in plastics, solvents, antifreeze, adhesives, and even as a clean-burning fuel.
The Methanol Production Process
Methanol is industrially produced via a catalytic process using hydrogen gas and carbon monoxide (CO) or carbon dioxide (CO₂):
CO+2H₂→CH₃OH
CO₂+3H₂→CH₃OH+H₂O
This reaction typically occurs under high pressure and moderate temperatures in the presence of a copper-based catalyst.
Why Methanol Matters in Industry?
Methanol is a vital component in several downstream industries:
- Formaldehyde production: Used in the manufacture of plastics, resins, and insulation.
- Acetic Acid: Key to the production of adhesives, coatings, and food preservatives.
- Methyl Tert-Butyl Ether (MTBE): A gasoline additive to improve combustion
- Clean fuel: Used directly or blended with gasoline; also being explored as methanol fuel cells.
Uses of Hydrogen Gas in the Methanol Industry
With the rise of low-carbon initiatives, hydrogen’s role in methanol production is under reinvention. Conventional production often relies on gray hydrogen (from natural gas), but there’s a clear shift toward using green hydrogen for sustainable methanol.
For instance:
- Carbon Recycling International (CRI) in Iceland is producing methanol using CO₂ captured from emissions and green hydrogen—creating “e-methanol”.
- This process captures CO₂, reuses it with clean hydrogen, and produces a circular fuel and chemical feedstock with a low environmental footprint.
Example of Hydrogen Uses in Industrial Methanol Facilities
BASF, A global chemical giant, is heavily investing in green hydrogen infrastructure to decarbonize its methanol and chemical production lines. Their integrated sites in Germany are a model for how hydrogen’s industrial uses are evolving toward sustainability.
2. Hydrogen in Oil Refining
One of the major industrial uses of hydrogen is in the oil-refining process, where hydrogen is indispensable in upgrading crude oil into valuable end products. Hydrogen ensures the refining process is efficient, cleaner, and compliant with environmental standards, from improving fuel performance to reducing pollutants.
a) Hydrocracking: Maximizing Yield from Crude Oil
Hydrocracking is a refinery process that breaks down large, heavy hydrocarbon molecules into lighter, more valuable products such as:
- Gasoline
- Jet fuel
- Diesel
- Naphtha
How it works: Hydrocracking combines high pressure, high temperature, a catalyst, and hydrogen gas to “crack” the heavy hydrocarbons. Hydrogen stabilizes the molecular fragments and prevents the formation of unwanted byproducts.
Industrial Benefits:
- Increases overall fuel yield
- Produces cleaner-burning fuels
- Enhances octane number for better engine performance
- Reduces sulfur and nitrogen impurities
b) Hydrodesulfurization (HDS)
Another vital refining application is hydrodesulfurization, a process that removes sulfur from petroleum fractions to prevent:
- Sulfur oxide (SOx) emissions, which contribute to acid rain
- Catalyst poisoning in downstream petrochemical applications
Reaction example:
R-S+H₂→RH+H₂S
Here, hydrogen reacts with sulfur-containing compounds in the presence of a catalyst to yield hydrogen sulfide gas (H₂S), which is then removed from the system.
Industry Use Case:
Refineries worldwide are increasingly investing in hydrogen-intensive desulfurization units to meet the strict fuel emission regulations set by the International Maritime Organization (IMO) and Euro VI vehicle emission standards.
Examples of Hydrocracking and HDS
Shell
- Shell has integrated blue hydrogen (derived from natural gas with carbon capture) in their refineries to reduce CO₂ emissions during hydrocracking and HDS.
ExxonMobil
- ExxonMobil has developed advanced hydroprocessing technologies with optimized hydrogen consumption for better energy efficiency and reduced carbon footprint.
Read on: Carbon Capture Storage & Process Safety
3. Hydrogen as a Fuel Source
As industries and governments push toward net-zero emissions, hydrogen is gaining traction as an industrial reactant and a clean fuel alternative in energy systems and transportation. Hydrogen’s industrial applications are transforming into power generation and fuel for mobility, reshaping the future of energy.
a) Power Generation with Hydrogen Fuel Cells
Hydrogen fuel cells convert chemical energy into electricity by reacting hydrogen gas with oxygen, producing only water and heat as byproducts. These systems are used in:
- Grid-scale backup power solutions
- Remote and off-grid energy supplies
- Peak load balancing for renewable energy grids
Fuel cell technology is especially valuable for integrating with intermittent renewables like solar and wind, acting as both an energy storage medium and dispatchable power source.
b) Hydrogen in Transportation: Clean Mobility on the Rise
Hydrogen is increasingly powering the next generation of zero-emission vehicles, especially where battery-electric options face limitations,
- Fuel cell electric vehicles (FCEVs) like the Toyota Mirai and Hyundai NEXO
- Hydrogen buses, trucks, and trains for long-haul transport
- Hydrogen-fueled ships and potential for aviation
Advantages:
- Fast refueling times (under 5 minutes)
- Long driving ranges (500–700 km)
- Suitable for heavy-duty and commercial fleets
Challenges:
- High infrastructure costs (hydrogen stations, pipelines)
- Hydrogen production and distribution hurdles
- Public awareness and market readiness
Still, with countries like Japan, Germany, and South Korea leading hydrogen mobility strategies, the role of hydrogen in industrial and transportation sectors continues to grow.
Safety Considerations in Industrial Hydrogen Facilities
While hydrogen offers vast potential across industrial applications, its use comes with unique safety challenges that require careful engineering, risk assessment, and operational discipline. Understanding the process safety considerations of hydrogen systems is essential for protecting people, infrastructure, and the environment.
Process Safety Studies for Hydrogen Facilities- Ensuring Operational Integrity
Hydrogen facilities operate under high pressure and often involve elevated temperatures and complex equipment. A minor leak or equipment failure can lead to fire, explosion, or toxic exposure. To manage these risks, organizations implement formal safety studies during the design and operational phases of the facility.
Conclusion
Hydrogen’s versatility makes it an essential resource across industries—from chemicals and refining to metallurgy and clean energy. As its use expands, ensuring thorough safety protocols through process safety studies and hydrogen safety training is critical to minimizing risks and maximizing benefits.
As the push for sustainability and decarbonization grows, hydrogen is taking center stage in industrial innovation—unlocking a cleaner, more efficient industrial future, provided it is used safely and responsibly.
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