The global hydrogen gas turbines market size was valued at USD XX Bn in 2022 and is likely to reach USD XX by 2031, expanding at a CAGR of XX during 2023–2031. The market growth is attributed to the increasing demand for hydrogen gas turbines for power generation purposes across various industries.
Rising implementation of strict government regulations aimed at reducing carbon emissions is boosting the adoption of renewable energy systems. Furthermore, significant investments in the exploration and trade of natural gas is propelling the usage of renewable energy systems. This, in turn, drives the demand for hydrogen gas to reduce greenhouse gas emissions and mitigate climate change.
Hydrogen gas turbines are a type of gas turbine power generation system that operates using hydrogen gas as the primary fuel. Gas turbines are engines that convert natural gas or other liquid fuels to mechanical energy, which is then used to generate electricity.
The basic principle of a hydrogen gas turbine is similar to that of a conventional gas turbine. Hydrogen gas is introduced into a combustion chamber where it is mixed with air or oxygen. The mixture is burned, and it creates a high-temperature, high-pressure gas. This gas expands rapidly, driving the turbine blades in a rotational motion. The rotating turbine is connected to a generator that converts the mechanical energy into electrical energy.
Hydrogen is a clean burning fuel that produces only water vapor as a byproduct when combusted, making it environment-friendly. Additionally, hydrogen has high energy content, which contributes to high power generation efficiency.
The market report finds that the COVID-19 pandemic hampered the hydrogen gas market. The pandemic caused disruptions in global supply chains, affecting the production and delivery of hydrogen gas turbines. Factory closures, restrictions on transportation, and reduced workforce availability impacted manufacturing processes and led to delays in turbine production and project timelines.
Hydrogen Gas Turbines Market Dynamics
Major Drivers
Rising environmental concerns is driving the market. Hydrogen gas turbines offer a clean and sustainable alternative to conventional fossil fuel-based power generation. Governments and industries are trying to reduce greenhouse gas emissions and combat climate change. Hydrogen gas turbines are considered as a viable solution. Hydrogen combustion does not produce CO2 emissions, which is helping to decarbonize the energy sector. This makes them an ideal option for power generation in various industries.
Increasing government support and investments in favorable policies are propelling the market. Governments and regulatory bodies are increasingly supporting the development and deployment of hydrogen technologies, including hydrogen gas turbines. They are implementing favorable policies and research programs to accelerate the adoption of hydrogen as an energy carrier. These initiatives attract investments in hydrogen infrastructure and technology, thus fueling the market.
Existing Restraints
High fluctuations in the cost of raw materials hamper the market. High cost of producing and storing hydrogen is a major disadvantage of hydrogen energy. Hydrogen gas turbines are designed to generate power by combusting hydrogen as a fuel source. However, the production of hydrogen gas involves energy-intensive processes that are expensive. Additionally, storing hydrogen gas in large quantities often requires specialized equipment and infrastructure, such as high-pressure tanks or cryogenic storage systems, which are costly.
Emerging Opportunities
Increasing usage of hydrogen gas turbines by industries for several applications creates lucrative opportunities in the market. Hydrogen gas turbines have several applications beyond power generation, particularly in industries such as petrochemical refineries and steel mills that require high-temperature heat. Hydrogen gas turbines provide the necessary heat and power for industrial processes, such as refining, chemical production, and steel manufacturing. These sectors are exploring hydrogen as a clean fuel option to reduce their carbon footprint.
Scope of the Hydrogen Gas Turbines Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Hydrogen Gas Turbines Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Aeroderivative and Heavy-duty Gas Turbines [B/E Class, F-Class, HA Class, and Others]), Output Capacity (10-50 MW, 30-70MW, 70-200 MW, 250-500 MW, and above 500 MW), H2 Fuel Composition (Up to 20%, 20% to 60%, and 60 to 100%), and Application (Marine, Oil & Gas, Steel Mills & Refineries, Aerospace & Defense, and Petrochemicals
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Baker Hughes Company; Ansaldo Energia; Destinus Energy; Doosan Enerbility; MAN Energy Solutions SE; Kawasaki Heavy Industries, Ltd.; Solar Turbines incorporated; Siemens; and General Electric
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Hydrogen Gas Turbines Market Segment Insights
Type Segment Analysis
Based on type, the hydrogen gas turbines market is divided into aeroderivative and heavy-duty gas turbines. The heavy-duty gas turbines segment is further categorized into B/E class, F-class, HA class, and others. The aeroderivative segment is projected to expand at a high growth rate during the forecast period, due to the increasing applicability of these units in marine propulsion and power utilities.
They feature a power turbine and high-pressure shaft that work together to respond quickly to grid frequency fluctuations. They are used in electrical power generation, due to their ability to shut down and handle load changes more quickly than industrial machines. They are also used to reduce weight in the marine industry.
An aeroderivative gas turbine is a lightweight variation of a gas turbine. It is designed to mix fuel and air, and then ignited to achieve the desired output. They offer a high level of flexibility and adaptability, which makes them well-suited for various hydrogen gas turbine applications. They quickly respond to changes in power demand, making them ideal for grid stability and load balancing.
Furthermore, aeroderivative turbines have a compact design and a high power-to-weight ratio, which allows for easy integration into existing infrastructure and reduction of installation and maintenance costs. This feature is particularly beneficial in the hydrogen gas turbine market, where retrofitting existing systems or implementing new installations is required.
Aeroderivative gas turbines have applications in various industries, such as aviation and oil & gas. These turbines have a proven track record of reliability and performance in demanding environments, making them a trusted choice for hydrogen gas turbine applications.
Many industries and power utilities are transitioning towards decarbonization, making hydrogen gas turbines an attractive solution for generating electricity with reduced greenhouse gas emissions. Flexibility and efficiency of aeroderivative turbines line up well with the evolving needs of these sectors.
The heavy-duty gas turbine segment is projected to expand at a significant growth rate in the coming years, as big power plants are increasingly preferring heavy-duty gas turbines for power generation. These turbines are capable of burning a variety of fuels, from natural gas to heavy liquid residuals, which makes them ideal for use in big power plants.
Heavy-duty gas turbines are known for their high-power output capabilities, which align with the requirements of hydrogen gas turbines. Hydrogen gas turbines are often utilized in large-scale power generation settings where significant amounts of electricity need to be produced. Heavy-duty turbines deliver the necessary power to meet these demands efficiently.
D and E-class gas turbines typically range from 75 to 100 MW and are known for their robustness and reliability. They are capable of efficiently burning low-quality fuels. F-class gas turbines, ranging from 150 to 250 MW, are advanced and are designed for combined cycle power plants. They offer improved efficiency and performance as compared to previous generations.
G, H, and J classes represent recent developments in heavy-duty gas turbine technology. These machines, with an output of over 250 MW, incorporate advanced technologies, resulting in a new generation of gas turbines. They boast of superb efficiency, exceeding 62%.
Output Capacity Segment Analysis
On the basis of output capacity, the global market is segregated into 10-50 MW, 30-70MW, 70-200 MW, 250-500 MW, and above 500 MW. The 70-200 MW segment is projected to expand at a high CAGR during the forecast period. This growth is attributed to the widespread utilization of hydrogen gas turbines with an output capacity of 70-200MW within process industries and small-scale generating plants.
Process industries such as refining, chemical production, and steel manufacturing require a substantial amount of heat and power for their operations. 70-200 MW hydrogen gas turbines are well-suited to meet the energy demands of these industries. They provide a reliable and efficient source of heat and power required for various processes. Additionally, many industries are increasingly exploring hydrogen as a clean fuel option to reduce their carbon footprint, further driving the demand for hydrogen gas turbines.
These turbines efficiently generate electricity to meet the energy needs of small communities and remote areas where the grid connection is limited. Growing adoption of small-scale generating plants that utilize hydrogen gas turbines contribute to the expansion of the 70-200 MW segment.
H2 fuel composition Segment Analysis
On the basis of H2 fuel composition, the hydrogen gas turbine market is segmented into up to 20%, 20% to 60%, and 60 to 100%. The 60 to 100% segment dominates the market, due to the growing adoption of B/E class and F class H2 gas turbines for industrial purposes. B/E and F class models have the capability of achieving about 100% hydrogen burning. Moreover, some key companies competing in the market are focusing on achieving 100% H2 burning capability for gas turbines.
The 20% to 60% segment is projected to expand at a considerable CAGR during the forecast period, owing to the increasing adoption of aeroderivative hydrogen gas turbines in the oil & gas industry. Aeroderivative H2 gas turbines have a hydrogen burning capacity of 20% to 60% and these turbines are preferable for industrial applications, due to their reliability and efficiency.
Application Segment Analysis
Based on application, the hydrogen gas turbines market is segregated into marine, oil & gas, steel mills & refineries, aerospace & defense, and petrochemicals.
The steel mills & refineries segment is dominating the market, due to the increasing demand for hydrogen gas turbines to burn the hydrogen-generated gas for power generation. Steel mills & refineries plants generate gases containing hydrogen. This excess gas is burned and turned into power using H2 gas turbines.
Demand for renewable energy sources is rapidly increasing and the carbon free-status of hydrogen makes it an attractive source of renewable energy. Governments are implementing supportive policies to promote the adoption of clean energy technologies. Such government support encourages investment in hydrogen infrastructure and facilitates the growth of the hydrogen gas turbine market. Moreover, governments are imposing strict regulations on refineries and steel mills to reduce their carbon footprint, which creates opportunities for the manufacturers of H2 gas turbines.
Regional Outlook
In terms of region, the global hydrogen gas turbine market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
North America dominates the hydrogen gas turbine market, owing to the increasing demand for hydrogen gas turbines in oil refineries and steel mills in the region. The US has a large number of oil refineries, with around 130 operational facilities in the country producing around 18 million barrels daily. Hence, the demand for H2 gas turbines is rising for power generation in the country. Governments in the region are imposing strict regulations, especially for industrial companies, to reduce carbon emissions. This is creating opportunities for gas turbine manufacturers, as H2 gas turbines aid in converting excessive gases into renewable energy sources.
Segments
The hydrogen gas turbines market has been segmented on the basis of
Type
- Aeroderivative
- Heavy-duty Gas Turbines
- B/E Class
- F-Class
- HA Class
- Others
Output Capacity
- 10-50 MW
- 30-70MW
- 70-200 MW
- 250-500 MW
- Above 500 MW
H2 Fuel Composition
- Up to 20%
- 20% to 60%
- 60 to 100%
Application
- Marine
- Oil & Gas
- Power Generation
- Steel Mills & Refineries
- Aerospace & Defense
- Petrochemicals
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Baker Hughes Company
- Ansaldo Energia
- Destinus Energy
- Doosan Enerbility
- MAN Energy Solutions SE
- Kawasaki Heavy Industries, Ltd.
- Solar Turbines incorporated
- Siemens
- General Electric
Competitive Landscape
Key players competing in the global hydrogen gas turbines market are Baker Hughes Company; Ansaldo Energia; Destinus Energy; Doosan Enerbility; MAN Energy Solutions Sem; Kawasaki Heavy Industries, Ltd.; Solar Turbines incorporated; Siemens; and General Electric.
These companies adopted several development strategies, including mergers, acquisitions, partnerships, collaborations, product launches, and production expansion to cater to customers globally. They are recognized for developing advanced gas turbine technologies, including hydrogen-compatible turbines. They developed advanced-class gas turbines that are designed to operate on a blend of hydrogen and natural gas, offering high efficiency and flexibility for power generation applications. For instance,
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Ansaldo Energia achieved a significant milestone in May 2023 with the successful ignition of its inaugural gas turbine at the Irsching 6 plant in Bavaria, Germany. This gas turbine, an AE94.3A model, is part of the 300 MW reserve power plant developed by Ansaldo Energia. The primary purpose of this power plant is to support the stabilization of the power grid.
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