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Hydrogen Market to Nearly Double To 1.5 Billion By 2008

Articles / Future Fuels
Posted by gfoat on Jan 13, 2004 - 06:46 PM

Hydrogen is environmentally friendly. Hydrogen, it is believed by scientists, can one day economically replace oil and natural gas as the world's primary energy source. A long-term aim of the governments of North America, Europe, Japan, and other Asian nations is to develop hydrogen energy economies. The U.S. Department of Energy has identified hydrogen storage and production as a priority for research and development. Billions of dollars a year will be spent to make a hydrogen economy practical.

Hydrogen used in fuel cells will be used to create electricity for industrial, commercial, and residential buildings and to power transportation. Stored hydrogen will compete with batteries and other portable power sources in capacities ranging from one watt to kilowatts.

According to a recently published report from Business Communications Company, Inc. (www.bccresearch.com)   RE-107 Hydrogen Generation for Fuel Cells, the worldwide hydrogen generation, storage and delivery device market is currently estimated at $702 million. The market is expected to reach nearly $1.5 billion as it grows at an average annual growth rate of 15.8% through 2008.

Vehicle and stationary hydrogen delivery are expected to dominate the market sometime after 2010, but prior to 2010, R&D dollars will sustain the industry, though small portable fuel cells may gain earlier market ubiquity.

Devices for stationary electric generation are expected to become commercial over the next five years as they move from the laboratory and pilot production lines into full commercial production. Today the stationary market is estimated to be about 66% of the total hydrogen delivery device market.

Transportation will be 35% of the market for the hydrogen delivery device market in 2008, up from 28% in 2003. The portable market is reflective of the research market for these devices as only a few companies are offering fuel cells for hand held devices though many dollars are being spent. Portable fueling systems were valued at about $39 million in 2003 growing to $81.3 million in 2008.

The value of hydrogen production, storage, and dispensing devices for fuel cell purposes is expected to grow in the high double-digit range from a base of $321 million in 2002, mostly in research spending and from the sales of beta model commercial units. An increase in U.S., European, and Japanese research and demonstration spending more than doubled that in 2003 to $780 million. Costs remain high due to a lack of mass production, which is expected to move into a higher gear in the near term. Many companies will continue to research and improve the devices. The market for the application of these devices in the stationary, vehicle and portable markets is expected to exceed $1.6 billion in 2008.

Fuel cell advocates proclaim the technology as one of the most momentous leaps forward of the era. Most of those visions, however, have yet to materialize. With the most recent developments in materials, size, and cost structure-making affordable, renewable, nonpolluting power a realistic option for a myriad of applications-the potential of fuel cells seems clearly large.

Global Hydrogen Generation, Storage and Delivery Device Value by Energy Application, Through 2008
($ Millions including R&D)
 
Device Type

2000

2001

2002

2003

2008

AAGR %
2003-2008

Total

216

243.5

298.9

702.2

1462.1

15.8


RE-107 Hydrogen Generation for Fuel Cells
Published: December 2003    Price:

BUSINESS COMMUNICATIONS COMPANY, INC., 25 Van Zant Street, Norwalk, CT 06855,  Telephone: (203) 853-4266; ext. 309,  Email: publisher@bccresearch.com [1] :Source and publisher.

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