Underground Hydrogen Storage Market Size, Share & Trends Analysis Report By Storage Type (Porous Media Storage, Salt Caverns, Engineered Cavities), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global underground hydrogen storage market size was estimated at 2,160.81 MCM in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 10.7% from 2023 to 2030. The growth of the underground hydrogen storage market is primarily attributed to research & development in hydrogen technologies and increasing acceptance of alternative forms of energy. Increasing applications of hydrogen across several sectors are expected to further propel market growth.

Hydrogen storage is a leading-edge technology that involves detailed technical expertise and components used for manufacturing. Therefore, various regulations and procedures must be followed to manufacture and maintain the structural integrity of underground hydrogen storage facilities. The U.S. market is anticipated to witness substantial growth in the forecast period owing to the large volumes of hydrogen produced in the country.

The U.S. is among the early adopters of clean energy solutions in the world for manufacturing, transportation, and power generation sectors. The U.S. underground hydrogen storage market has been growing with technological advancements, real-time data delivery related to gas injection, and increasing awareness regarding hydrogen gas being a clean fuel.

The U.S. underground hydrogen storage market concentrates on salt formations owing to their high deliverability and cycling rates. Huge investments in the development of underground hydrogen facilities have augmented the growth of the underground hydrogen storage market in the U.S.

Storage Type Insights

The storage type segment consists of porous media storage, salt caverns, and engineered cavities. The salt caverns segment led the market and accounted for 99.53% of the global volume share in 2022.

Salt caverns are salt domes and bedded salts with high deliverability and have a short cycle of 10 to 20 days. These caverns are the most expensive among other storage types owing to the new infrastructures and solution mining required by them. Unlike depleted reservoirs, salt caverns require less cushion gas injection of approximately 20–30%.

Porous media storage accounted for the second highest market share in the underground hydrogen storage market. Its storage consists of limestone, formations, shale, and conglomerates, which ensure high permeability and void fractions for hydrogen storage. It includes gas and depleted fields and aquifers. Porous media storage has been proposed as an effective and sustainable storage type for underground hydrogen to balance renewable energy supply and seasonal demand.

Engineered cavities are underground gas storage facilities such as mine shafts, which have been modified to store hydrogen. Establishing hydrogen storage facilities based on engineered cavities is still in the research and development phase and is expected to have a positive outcome in the near future. A number of pilot projects have been carried out while conceptual designs of these facilities are being prepared to scope their proposed outcome.

Regional Insights

Europe dominated the global market in 2022 and accounted for the largest volume share of over 53.88%. Europe has been investing heavily in hydrogen energy as an alternate power source. Countries in the region are looking for energy independence and are increasing their domestic underground hydrogen storage capacities. The government of the UK has been investing heavily in developing its hydrogen generation and storage capabilities. The country plans to become a major player in the emerging hydrogen economy.

North America is anticipated to emerge as a leading regional market for underground hydrogen storage over the forecast period, owing to technological advancements, real-time data delivery related to gas injection, and increasing awareness regarding natural gas being a clean fuel.  

Asia Pacific is expected to have significant demand for underground hydrogen storage facilities in the coming years, owing to the large-scale adoption of hydrogen in industrial applications such as oil refining and the production of methanol and ammonia. The presence of a large number of refineries in China and India is expected to drive the utilization of underground hydrogen storage in the region. Moreover, countries such as Japan and Australia are evaluating greener and cleaner technologies for hydrogen generation, which is further expected to boost the requirement for underground hydrogen facilities in the region over the forecast period.

Key Companies & Market Share Insights

The global underground hydrogen storage industry is a highly competitive market owing to the presence of major industries, as these companies are fairly concentrated and highly competitive. Some of the prominent players operating in the global underground hydrogen storage market are:

• Air Liquide

• Air Products and Chemicals, Inc.

• Engie

• Linde plc

• Texas Brine Company, LLC

• Uniper SE

• WSP

Underground Hydrogen Storage Market Report Scope

Global Underground Hydrogen Storage Market Segmentation

This report forecasts volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global underground hydrogen storage market report based on type and region:

• Type Outlook (Volume, TCM, 2018 - 2030)

  • Porous Media Storage

  • Salt Caverns

  • Engineered Cavities

• Regional Outlook (Volume, TCM, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • Australia

    • China

    • India

    • Japan

  • Latin America

    • Mexico

    • Brazil

  • Middle East & North Africa

    • Algeria

    • Egypt

    • Libya

    • UAE