Pink Hydrogen Market Size, Share & Trends Analysis Report by Form, By Technology, By Application, By Region, And Segment Forecasts, 2024 To 2030

While pink hydrogen is in its early stages of development, the growing interest in it as a clean energy source has been driving investments. Pink hydrogen is produced through electrolysis powered by nuclear energy, which emits minimal greenhouse gases (GHG) and exhibits the potential to aid countries aiming for net-zero emissions by 2050. In contrast to green hydrogen, which has a capacity factor of 55%, pink hydrogen plants have a capacity factor of 95% due to the steady base load profile of nuclear power compared to the intermittent load supply of renewable power sources.

Governments worldwide are implementing stricter regulations and offering incentives for clean energy adoption, further propelling market growth. Countries, such as the UAE, France, Canada, and China, are conducting studies to leverage the heat from existing nuclear reactors for electrolysis, thus potentially becoming significant producers. Moreover, countries in MENA, like Morocco, Egypt, and Saudi Arabia, have ambitious hydrogen development plans, and R&D in pink hydrogen is a part of their strategy.

The pink hydrogen value chain is a collaborative network of entities working together to bring low-carbon hydrogen to market. Raw material providers, such as existing nuclear power plants and water treatment facilities, provide high-purity water for efficient electrolysis.

Technology developers, such as Siemens Energy and ITM Power, specialize in advanced electrolysis systems that efficiently convert nuclear electricity into hydrogen. Manufacturers, such as Linde, Air Products, and Plug Power, design and build the infrastructure for pink hydrogen production, including electrolyzers, storage tanks, and transportation equipment. End-users, such as refineries, automotive, and power generation companies, utilize pink hydrogen for clean energy solutions.

According to the IEA, low-emission hydrogen demand is expected to increase fourfold to reach about 38 million tons by 2030. This facilitates the requirement for pink hydrogen to meet this growing need. Also, governments worldwide are implementing various policies to support the development and adoption of low-carbon hydrogen.

For example, Feed-in Tariffs (FITs) in Europe offer guaranteed payments to producers of low-carbon hydrogen for a set period. This provides financial stability and encourages investment in production facilities. Also, Production Tax Credits (PTCs) implemented in the U.S. offer tax breaks to companies that produce low-carbon hydrogen. This reduces production costs and makes it more competitive with traditional high-carbon options.

North America, including the U.S. and Canada, followed by Europe, which includes France, the UK, and Sweden, has established nuclear power programs and is exploring low-carbon hydrogen production. Several European countries have significant nuclear infrastructure and are pursuing clean energy solutions. France, for example, is a leader in nuclear power, while the UK is investing in hydrogen development. As a significant nuclear power producer, China will soon see potential in pink hydrogen.

Some of the key vendors operating in the market include Air Products and Chemicals, Inc., OKG Aktiebolag, Siemens Energy, Exelon Corporation, Linde Plc, Air Liquide, Hydrogen Systems, Nel ASA, Iberdrola, S.A., Plug Power Inc., and SGH2 Energy.

Prominent players in the marketplace continuously evaluate organic and inorganic growth strategies regarding R&D, collaborations, and partnerships across the value chain. For instance, in October 2023, the UAE initiated the investigation of pink hydrogen production by capitalizing on the heat from nuclear plants. The UAE planned to produce 1.4 million tons of hydrogen annually by 2031.

Similarly, in November 2022, the U.S. government intended to establish its first pink hydrogen demonstration plant at the Nine Mile Point nuclear power station in New York. The facility shall encompass low-temperature electrolyzers to produce hydrogen used as a reactor coolant at the plant. The U.S. DoE awarded USD 5.8 million to the project owner Constellation Energy to produce low-emission hydrogen.