Blue Hydrogen Market to Grow at 57.64% CAGR Through 2031 Driven by Carbon Capture | Mordor Intelligence

The global blue hydrogen market is projected to reach 7.89 million tons by 2031, with Asia-Pacific leading demand growth.

HYDERABAD, TELANGANA, INDIA, November 4, 2026 /EINPresswire.com/ — According to Mordor Intelligence, the global blue hydrogen market size is projected to increase from 0.81 million tons in 2026 to 7.89 million tons by 2031, registering a CAGR of 57.64% during 2026–2031. Meanwhile, Asia-Pacific is emerging as a key growth region, supported by blue ammonia supply agreements with Japan and South Korea. Investment in autothermal reforming (ATR) plants with carbon capture, supported by the US IRA 45V tax credit and EU regulations, is encouraging project development. Shared carbon capture and storage (CCS) infrastructure across the US Gulf Coast, North Sea, and Alberta is also helping reduce project costs.

Blue Hydrogen Market Trends & Upcoming Developments:

Expanding Blue Ammonia Trade Routes Across Asia

Saudi Arabia’s blue ammonia exports to Japan have demonstrated the potential of ammonia as a practical carrier for transporting hydrogen over long distances. Investments in ammonia-cracking infrastructure in South Korea are also supporting the development of regional supply chains. These trade routes offer Japan and South Korea access to lower-carbon hydrogen while addressing domestic renewable energy limitations.

Increasing Use of Blue Hydrogen in Chemical Production

Chemical manufacturers are adopting blue hydrogen as a lower-carbon feedstock for ammonia and methanol production. Its use in fertilizer manufacturing and marine fuel production is also gaining attention as companies seek to meet emissions requirements. Carbon capture incentives and demand for certified low-carbon products are further encouraging producers to establish long-term supply agreements.

Efficiency Challenges and Higher Production Costs

Carbon capture adds energy requirements to hydrogen production, increasing feedstock consumption and operating costs. Although autothermal reforming can improve efficiency, the additional oxygen supply infrastructure raises project expenses. High natural gas prices in Europe further affect production economics, while emerging alternatives such as hydrogen pyrolysis remain at an early development stage. These limitations may restrict blue hydrogen adoption in power generation, particularly where efficiency is a priority.

Blue Hydrogen Industry Segments:

By Technology

Steam Methane Reforming (SMR) + CCS

Autothermal Reforming (ATR) + CCS

Gas Partial Oxidation (GPOX) + CCS

Natural Gas Pyrolysis / NGD

Integrated SMR–ATR Hybrid

By End-user Industry

Refining

Chemicals

Iron and Steel

Transportation

Other Industries (Cement, Glass, Food, and more)

By Geography:

Asia-Pacific

North America

Europe

South America

Middle East and Africa

Discover the latest trends, growth opportunities, and competitive developments in the Blue Hydrogen Industry: https://www.mordorintelligence.com/industry-reports/blue-hydrogen-market?utm_source=einpr

Blue Hydrogen Market Share by Region:

Asia-Pacific is emerging as a major centre for blue hydrogen production and trade, supported by investments in hydrogen facilities, carbon capture infrastructure, and ammonia imports. China is expanding production capacity alongside carbon storage projects, while Japan and South Korea are developing import terminals to support hydrogen supply chains. India is also exploring blue hydrogen production, although wider adoption will depend on policy support and carbon pricing mechanisms.

Europe is supporting blue hydrogen adoption through low-carbon fuel policies and investments in industrial clusters, although high natural gas prices and carbon storage regulations remain challenges. The United Kingdom is developing hydrogen supply networks, while Germany and other European countries are progressing with selected projects. Meanwhile, Saudi Arabia and Brazil are exploring export opportunities through blue hydrogen and ammonia production, with Northeast Asia emerging as a potential destination for these supplies.

Jayveer V, Senior Research Manager at Mordor Intelligence, says, “As the blue hydrogen industry develops, investments in carbon capture infrastructure, low-carbon hydrogen production, and industrial applications are shaping market opportunities. Decision-makers need research supported by reliable data, consistent validation, and balanced industry assessment. Mordor Intelligence follows a structured research methodology to provide insights into market developments, competitive strategies, and key growth drivers.”

Blue Hydrogen Companies

Air Liquide

Air Products and Chemicals, Inc.

ATCO Ltd.

BP p.l.c.

CERTIFHY CONSORTIUM

Cummins Inc.

Equinor ASA

Exxon Mobil Corporation

Johnson Matthey

Linde PLC

Plug Power Inc.

Reliance Industries Limited

SABIC

Saudi Arabian Oil Co.

Shell plc

Siemens Energy

Suncor Energy Inc.

Technip Energies N.V.

Topsoe A/S

TotalEnergies

Uniper SE

Xebec Adsorption Inc.

The Blue Hydrogen Market report is also available in the following languages:

Japanese: https://www.mordorintelligence.com/ja/industry-reports/blue-hydrogen-market?utm_source=einpr

French: https://www.mordorintelligence.com/fr/industry-reports/blue-hydrogen-market?utm_source=einpr

German: https://www.mordorintelligence.com/de/industry-reports/blue-hydrogen-market?utm_source=einpr

Spanish: https://www.mordorintelligence.com/es/industry-reports/blue-hydrogen-market?utm_source=einpr

Portuguese: https://www.mordorintelligence.com/pt/industry-reports/blue-hydrogen-market?utm_source=einpr

Global Blue Hydrogen Market Recent Industry Developments:

March 2025: Aramco completed the acquisition of a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), a joint venture with Air Products Qudra. Based in Jubail, Saudi Arabia, the venture aims to produce lower-carbon hydrogen from natural gas using carbon capture and storage. The development is expected to support hydrogen supply to refining, chemical and petrochemical industries while strengthening the country’s industrial hydrogen network.

August 2026: CF Industries, JERA and Mitsui broke ground on the Blue Point One project in Louisiana, involving an investment of approximately USD 3.7 billion. The facility will use autothermal reforming (ATR) to produce hydrogen for low-carbon ammonia manufacturing, with captured CO₂ transported for permanent storage. The plant is expected to have an annual ammonia production capacity of 1.4 million metric tons and begin operations in 2029.

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