EU: Hydrogen Market 2022

Hydrogen Market Size in the EU

In 2021, the EU hydrogen market was finally on the rise to reach $X for the first time since 2018, thus ending a two-year declining trend. In general, consumption, however, recorded a noticeable descent. The level of consumption peaked at $X in 2012; however, from 2013 to 2021, consumption stood at a somewhat lower figure.

Hydrogen Production in the EU

In value terms, hydrogen production reached $X in 2021 estimated in export price. In general, production, however, recorded a noticeable curtailment. The pace of growth was the most pronounced in 2016 when the production volume increased by 5.7% against the previous year. Over the period under review, production hit record highs at $X in 2012; however, from 2013 to 2021, production stood at a somewhat lower figure.

Hydrogen Exports

Exports in the EU

Hydrogen exports surged to X cubic meters in 2021, picking up by 91% on the previous year's figure. In general, exports, however, showed a perceptible shrinkage. The volume of export peaked at X cubic meters in 2019; however, from 2020 to 2021, the exports failed to regain momentum.

In value terms, hydrogen exports soared to $X in 2021. Overall, exports, however, showed a relatively flat trend pattern. The level of export peaked at $X in 2012; however, from 2013 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Belgium was the largest exporting country with an export of about X cubic meters, which accounted for 60% of total exports. It was distantly followed by the Netherlands (X cubic meters), committing a 27% share of total exports. The following exporters - Germany (X cubic meters) and Sweden (X cubic meters) - each resulted at a 7.3% share of total exports.

Belgium was also the fastest-growing in terms of the hydrogen exports, with a CAGR of +27.8% from 2012 to 2021. Germany (-1.9%), Sweden (-3.3%) and the Netherlands (-12.9%) illustrated a downward trend over the same period. Belgium (+54 p.p.) significantly strengthened its position in terms of the total exports, while the Netherlands saw its share reduced by -49.6% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Belgium ($X), the Netherlands ($X) and Germany ($X) were the countries with the highest levels of exports in 2021, together accounting for 92% of total exports.

Among the main exporting countries, Belgium, with a CAGR of +20.9%, recorded the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced a decline in the exports figures.

Export Prices by Country

In 2021, the export price in the European Union amounted to $X per cubic meter, growing by 19% against the previous year. Export price indicated mild growth from 2012 to 2021: its price increased at an average annual rate of +1.4% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, hydrogen export price increased by +112.2% against 2019 indices. The pace of growth appeared the most rapid in 2020 an increase of 79%. The level of export peaked in 2021 and is expected to retain growth in the near future.

Prices varied noticeably country of origin: the country with the highest price was Germany ($X per cubic meter), while Sweden (less than $X per cubic meter) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the Netherlands (+3.7%), while the other leaders experienced mixed trends in the export price figures.

Hydrogen Imports

Imports in the EU

In 2021, overseas purchases of hydrogen increased by 144% to X cubic meters for the first time since 2018, thus ending a two-year declining trend. Overall, imports, however, saw a pronounced shrinkage. Over the period under review, imports reached the peak figure at X cubic meters in 2018; however, from 2019 to 2021, imports failed to regain momentum.

In value terms, hydrogen imports soared to $X in 2021. In general, imports, however, continue to indicate a drastic downturn. The level of import peaked at $X in 2012; however, from 2013 to 2021, imports remained at a lower figure.

Imports by Country

The Netherlands prevails in imports structure, amounting to X cubic meters, which was approx. 72% of total imports in 2021. France (X cubic meters) ranks second in terms of the total imports with a 4.9% share, followed by Austria (4.8%). The following importers - Germany (X cubic meters), Belgium (X cubic meters) and Denmark (X cubic meters) - together made up 10% of total imports.

From 2012 to 2021, average annual rates of growth with regard to hydrogen imports into the Netherlands stood at +13.3%. At the same time, Denmark (+16.1%) and Austria (+1.9%) displayed positive paces of growth. Moreover, Denmark emerged as the fastest-growing importer imported in the European Union, with a CAGR of +16.1% from 2012-2021. By contrast, Germany (-6.8%), France (-16.1%) and Belgium (-25.8%) illustrated a downward trend over the same period. From 2012 to 2021, the share of the Netherlands and Denmark increased by +52 and +2.4 percentage points, respectively. Germany (-2.1 p.p.), France (-14.8 p.p.) and Belgium (-39.5 p.p.) saw their shares reduced. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the Netherlands ($X) constitutes the largest market for imported hydrogen in the European Union, comprising 67% of total imports. The second position in the ranking was taken by Germany ($X), with a 7.6% share of total imports. It was followed by France, with a 5.2% share.

From 2012 to 2021, the average annual growth rate of value in the Netherlands stood at +16.3%. In the other countries, the average annual rates were as follows: Germany (-4.0% per year) and France (-17.6% per year).

Import Prices by Country

The import price in the European Union stood at $X per cubic meter in 2021, dropping by -5.3% against the previous year. In general, the import price saw a noticeable shrinkage. The most prominent rate of growth was recorded in 2020 an increase of 37% against the previous year. Over the period under review, import prices hit record highs at $X per cubic meter in 2013; however, from 2014 to 2021, import prices remained at a lower figure.

Prices varied noticeably country of destination: the country with the highest price was Germany ($X per cubic meter), while Denmark ($X per cubic meter) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Germany (+3.0%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Market Intelligence Platform

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