Global hydrogen production by coal market in Europe was valued at USD 834 million in 2024 and is projected to decline to USD 743 million by 2032, exhibiting a negative CAGR of 1.6% during the forecast period 2025–2032.This downward trajectory highlights the region's shifting focus toward cleaner energy alternatives, driven by stringent environmental policies and rapid advancements in green hydrogen technologies.
Hydrogen production from coal relies primarily on two mature processes—coal gasification and coal pyrolysis. While these technologies remain relevant for industrial sectors requiring cost-effective hydrogen, the European Union's decarbonization mandates are reshaping market dynamics. Countries like Germany and France are leading the transition away from coal, with major energy players such as Air Liquide and Linde Group redirecting investments toward sustainable hydrogen solutions.
Download FREE Sample Report: https://www.24chemicalresearch.com/download-sample/296398/europe-hydrogen-by-coal-market
Germany dominates Europe's coal-based hydrogen production landscape, leveraging its advanced gasification infrastructure and existing industrial demand. However, Western European nations are progressively phasing out coal in favor of renewable alternatives, while Eastern European countries—particularly Poland—continue to utilize domestic coal reserves for hydrogen production. The EU's stringent emissions regulations under the Fit for 55 package are accelerating this regional divergence, with carbon pricing significantly impacting production costs.
Despite the overall market contraction, strategic projects integrating carbon capture and storage (CCS) are gaining traction. For instance, Germany's Lusatia region is piloting coal-to-hydrogen initiatives with CCS to support hard-to-abate industries such as steel and chemicals. Meanwhile, the Netherlands and UK are investing heavily in blue hydrogen projects as transitional solutions, demonstrating how policy frameworks influence regional adoption patterns.
The market's primary driver remains industrial demand—particularly in ammonia synthesis and oil refining—which accounts for over 65% of Europe's coal-based hydrogen consumption. Furthermore, established coal infrastructure offers short-term cost advantages, with retrofitted plants reducing capital expenditures by 30-40% compared to new green hydrogen facilities.
Emerging opportunities include sustainable aviation fuel (SAF) production and power-to-X applications. Additionally, partnerships between energy firms and industrial offtakers are creating innovative business models. These collaborations often include long-term supply agreements with carbon management services, providing revenue stability amid market uncertainties. The anticipated certification of low-carbon hydrogen from CCS-enabled projects by 2026 could further open niche markets where lifecycle emissions rather than production methods dictate value.
The sector faces mounting pressure from environmental regulations, with the revised EU ETS imposing steep carbon costs that erode coal-based hydrogen's economic viability. Public opposition to coal technologies in Western Europe has also stalled several projects, regardless of carbon mitigation efforts. Meanwhile, insufficient CCS infrastructure remains a critical bottleneck—current storage capacity would need to expand by 150% to meet projected demand by 2030.
Other key challenges include:
The market features energy majors and specialized firms navigating Europe's energy transition:
This comprehensive analysis covers:
Get Full Report Here: https://www.24chemicalresearch.com/reports/296398/europe-hydrogen-by-coal-market
Founded in 2015, 24chemicalresearch has rapidly established itself as a leader in chemical market intelligence, serving clients including over 30 Fortune 500 companies. We provide data-driven insights through rigorous research methodologies, addressing key industry factors such as government policy, emerging technologies, and competitive landscapes.
With a dedicated team of researchers possessing over a decade of experience, we focus on delivering actionable, timely, and high-quality reports to help clients achieve their strategic goals. Our mission is to be the most trusted resource for market insights in the chemical and materials industries.
International: +1(332) 2424 294 | Asia: +91 9169162030
Website: https://www.24chemicalresearch.com/
Follow us on LinkedIn: https://www.linkedin.com/company/24chemicalresearch
| No comments yet. Be the first. |
