A SWOT Analysis of the Green Hydrogen Market

Abstract

Since the Industrial Revolution, humanity has heavily depended on fossil fuels. Recognizing the negative environmental impacts of the unmoderated consumption of fossil fuels, including global warming and consequent climate change, new plans and initiatives have been established to implement renewable and sustainable energy sources worldwide. This has led to a rapid increase in the installed solar and wind energy capacity. However, considering the fluctuating nature of these renewable energy sources, green hydrogen has been proposed as a suitable energy carrier to improve the efficiency of energy production and storage. Thus, green hydrogen, produced by water electrolysis using renewable electricity, is a promising solution for the future energy market. Moreover, it has the potential to be used for the decarbonization of the heavy industry and transportation sectors. Research and development (R&D) on green hydrogen has grown considerably over the past few decades, aiming to maximize production and expand its market share. The present work uses a SWOT (strengths, weaknesses, opportunities, and threats) analysis to evaluate the current status of the green hydrogen market. The external and internal factors that affect its market position are assessed. The results show that green hydrogen is on the right track to becoming a competitive alternative to fossil fuels soon. Supported by environmental benefits, government incentives, and carbon taxes, roadmaps to position green hydrogen on the energy map have been outlined. Nevertheless, increased investments are required for further R&D, as costs must be reduced and policies enforced. These measures will gradually decrease global dependency on fossil fuels and ensure that roadmaps are followed through.