Colombia Hydrogen Generation Market Size, Share & Trends Analysis Report By Systems (Merchant, Captive), By Technology (Steam Methane Reforming, Coal Gasification), By Application, And Segment Forecasts, 2022 - 2030

Report Overview

The Colombia hydrogen generation market size was valued at USD 303.14 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.6% from 2022 to 2030. The growth is anticipated to be driven by the rising demand for cleaner fuel and the increasing governmental regulations for the desulphurization of petroleum products. Hydrogen is an effective energy carrier, and this attribute is expected to contribute significantly to its further penetration into newer markets.

Colombia’s electricity demand is anticipated to witness an increase of nearly two-thirds of the current demand in the forecast period. Focus on projects related to distributed power & utility is anticipated to bolster the demand for hydrogen generation market growth over the forecast period.

In September 2021, Colombia announced for hydrogen roadmap to take a position in the Latin America hydrogen industry. The major goal of Colombia's hydrogen road map is to speed up the creation and national adoption of more environmentally friendly hydrogen. With the help of this procedure, the nation will be able to cut its carbon emissions and fulfill the ambitious climate promises it made to the 2015 Paris Agreement. But to get there, they must accomplish a number of short, medium, and long-term goals and milestones.

The Ministry of Energy and Mines will use this roadmap to continue the decarbonization of the energy sector. This tool offers a study of the pathways for hydrogen generation, domestic consumption, export potential, and mitigation potential. Additionally, it identifies the regulatory adjustments required to advance hydrogen-based technology and thus moves on to the following stage, which entails carrying out a hydrogen deployment strategy and outlining the parameters of the Colombian hydrogen supply chain.

Technology Type Insights

In terms of revenue, steam methane reforming held the largest share of 94.45% in 2021. In Colombia, steam methane reformers are utilized to produce the majority of the hydrogen needed in refineries. The steam methane reforming process is a mature and advanced technology in hydrogen generation. Other factors driving the growth of the Colombia hydrogen generation market include operational benefits such as high conversion efficiency associated with the steam methane reforming process. The Steam Methane Reforming segment is expected to keep its lead over the forecast period.

Coal gasification, which uses coal as a raw material for producing hydrogen, has been in practice for nearly two centuries, moreover, is it also recognized as a mature technology for hydrogen generation. Colombia has a huge domestic resource in coal. The use of coal to generate hydrogen for the transportation sector is expected to aid Colombia in reducing its dependency on imported petroleum products.

Technologies considered under the others segment include electrolysis and pyrolysis processes. Over the last decade, there has been an increase in new electrolysis installations to produce hydrogen from water, wherein PEM technology is gaining a significant share in the market as the process emits only oxygen as a byproduct without carbon emission.

Systems Insights

The captive segment led with a revenue share of 61.49%. The market is anticipated to expand significantly because the captive generation of hydrogen, which is defined as on-site generation, eliminates several issues related to the transportation and distribution of hydrogen. In Colombia and its bordering countries, captive hydrogen production accounts for the majority of supply routes. A minor amount of merchant hydrogen production is also carried out in the region. There was a 2.5 Mt H2/year demand for pure hydrogen.

Ammonia manufacturing (1.2 Mt2/year) and oil refining (1.3 Mt H2/year), as well as demand from other sectors like electronics, food, processing, glass-making, and transportation, are the sources of pure hydrogen demand. Site hydrogen generation in small-scale industries has gained more popularity owing to new technologies being offered at affordable prices in comparison to delivered distribution channels. Colombia and Chile accounted for almost 8% of the regional hydrogen demand in 2019. In Colombia, oil refining is responsible for most of the demand for hydrogen.

Application Insights

The ammonia production segment led the industry and accounted for the largest revenue share of more than 50.0% in 2021. The segment will maintain its lead throughout the forecast period. Ammonia’s potential as a carbon-free fuel, hydrogen carrier, and energy store represents an opportunity for renewable hydrogen technologies to be deployed at an even greater scale. Hydrogen is typically produced on-site at ammonia plants from a fossil fuel feedstock.

The market is anticipated to witness steady growth in all segments as the demand for hydrogen increases. Methanol is currently considered one of the most useful chemical products and is a promising building block for obtaining more complex chemical compounds, such as acetic acid, methyl tertiary butyl ether, dimethyl ether, methylamine, etc. Methanol is the simplest alcohol, appearing as a colorless liquid with a distinctive smell, and can be produced by converting CO2 and H2, with the further benefit of significantly reducing CO2 emissions in the atmosphere.

One of the key factors propelling the expansion of Colombia's hydrogen generation market is projected to be the growing use of hydrogen in the transportation sector. A variety of fuels, including coal, biomass, natural gas, and other non-renewable and renewable energy sources, are used to create hydrogen. It can also be applied as a pure gas to withstand very small amounts of other gases or pollutants. Additionally, the gas is used as a feedstock or fuel in industrial processes as a component of a gaseous mixture with gases that include carbon.

Turning crude oil into various end-user products such as transport fuels and petrochemical feedstock—are some of the major applications of hydrogen. Hydrotreatment and hydrocracking are the main hydrogen-consuming processes in the refinery. Hydrotreatment is used to remove impurities, especially Sulphur and accounts for a large share of refinery hydrogen use in Colombia. Hydrocracking is a process that uses hydrogen to upgrade heavy residual oils into higher-value oil products.

Key Companies & Market Share Insights

The Colombia hydrogen generation industry is competitive with key participants involved in R&D. Constant innovation done by the vendors has become one of the most important factors for companies operating in this industry. For instance, In May 2021, Promigas and Sumitomo corporation formed a partnership to accelerate hydrogen mobility in Colombia. The companies will jointly research into the potential of hydrogen as a mobility fuel in the country. Some prominent players in the Colombia hydrogen generation market include:

• Linde plc

• Air Products and Chemicals, Inc

• Air Liquide International S.A

• Messer SE & Co. KGaA

• SOL SpA

• Claind srl

• HYGEAR

• Siemens Energy

• Engie

• Cummins Inc.

Colombia Hydrogen Generation Market Report Scope

Colombia Hydrogen Generation Market Segmentation

This report forecasts revenue and volume growth on the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. Forthis study, Grand View Research has segmented the Colombia hydrogen generation market report based on technology, application, and system:

• Technology Outlook (Volume, Kilo Tons; Revenue, USD Million, 2019 - 2030)

  • Steam Methane Reforming

  • Coal Gasification

  • Others

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2019 - 2030)

  • Methanol production

  • Ammonia Production

  • Petroleum Refining

  • Transportation

  • Power Generation

  • Others

• Systems Outlook (Volume, Kilo Tons; Revenue, USD Million, 2019 - 2030)

  • Captive

  • Merchant