Tracking recent updates in Blue Hydrogen industry

Analysis

Manager, Downstream

Aditya Banerjee

Hydrogen

Low-carbon hydrogen, particularly blue hydrogen produced from natural gas with carbon capture and storage (CCS), is increasingly recognized as a potential contributor to global decarbonization efforts, especially in hard-to-electrify sectors such as heavy industry, transport, and flexible power generation. As of 2025, blue hydrogen markets are showing growth, primarily in regions like North America, Europe, and parts of the Asia-Pacific, supported by evolving infrastructure, policy incentives, and international climate commitments as highlighted by forums such as COP28. Despite this momentum, progress remains uneven and is contingent upon overcoming several challenges, including high capital costs, regulatory uncertainties, infrastructure constraints, and methane emission concerns. Additionally, some projects are facing delays or uncertainty due to shifting policy landscapes.
While regions such as North America, Europe (notably Germany), China, and parts of Asia-Pacific are advancing hydrogen infrastructure and offering incentives, the pace of development continues to depend heavily on sustained policy support, clear regulatory frameworks, and investor confidence. Despite the strategic importance of hydrogen, translating these high-level commitments into commercially viable projects remains a complex and unresolved challenge. High capital intensity, infrastructure bottlenecks, and methane-related concerns continue to temper expectations. Nevertheless, advances in CCS technologies, the use of digital optimization tools such as AI, and growing industrial interest suggest that blue hydrogen could still play a meaningful, though not guaranteed, role in achieving near-to-mid-term decarbonization targets.&nbsp;
This assessment focuses on Blue Hydrogen projects globally and is divided into the following sections:
<ul>
<li>Blue Hydrogen projects and capacity by region</li>
<li>Estimated carbon capture associated with blue hydrogen projects</li>
<li>Carbon dioxide (CO2) separation types (capture technology) in blue hydrogen projects</li>
<li>Global blue hydrogen projects by capture technology</li>
<li>Companies involved</li>
<li>Blue hydrogen capacity by end use</li>
</ul>
<h2><a href="~/members/members?ContentID=79511" title="" target="_blank" rel="noopener">Read the Report &gt;&gt;</a></h2>
<hr>
Related Services:
<a href="~/services/services?ContentID=155" title="" target="_blank" rel="noopener">Global Hydrogen Outlook</a>

Blue Hydrogen Analysis - 2025

Low-carbon hydrogen, particularly blue hydrogen produced from natural gas with carbon capture and storage (CCS), is increasingly recognized as a potential contributor to global decarbonization efforts, especially in hard-to-electrify sectors such as heavy industry, transport, and flexible power generation. As of 2025, blue hydrogen markets are showing growth, primarily in regions like North America, Europe, and parts of the Asia-Pacific, supported by evolving infrastructure, policy incentives, and international climate commitments as highlighted by forums such as COP28. Despite this momentum, progress remains uneven and is contingent upon overcoming several challenges, including high capital costs, regulatory uncertainties, infrastructure constraints, and methane emission concerns. Additionally, some projects are facing delays or uncertainty due to shifting policy landscapes.
While regions such as North America, Europe (notably Germany), China, and parts of Asia-Pacific are advancing hydrogen infrastructure and offering incentives, the pace of development continues to depend heavily on sustained policy support, clear regulatory frameworks, and investor confidence. Despite the strategic importance of hydrogen, translating these high-level commitments into commercially viable projects remains a complex and unresolved challenge. High capital intensity, infrastructure bottlenecks, and methane-related concerns continue to temper expectations. Nevertheless, advances in CCS technologies, the use of digital optimization tools such as AI, and growing industrial interest suggest that blue hydrogen could still play a meaningful, though not guaranteed, role in achieving near-to-mid-term decarbonization targets.&nbsp;
This assessment focuses on Blue Hydrogen projects globally and is divided into the following sections: &bull; &nbsp; &nbsp;Blue Hydrogen projects and capacity by region&nbsp; &bull; &nbsp; &nbsp;Estimated carbon capture associated with blue hydrogen projects &bull; &nbsp; &nbsp;Carbon dioxide (CO2) separation types (capture technology) in blue hydrogen projects &bull; &nbsp; &nbsp;Global blue hydrogen projects by capture technology &bull; &nbsp; &nbsp;Companies involved &bull; &nbsp; &nbsp;Blue hydrogen capacity by end use
<h3 style="margin: 0in;">Blue Hydrogen Projects by Region</h3>
The map below illustrates the concentration of significant blue hydrogen initiatives globally. In the United States, most of the projects are in the Gulf Coast region. One noteworthy project within this development is ExxonMobil's Baytown Low-Carbon Hydrogen Facility.&nbsp;
<img src="https://cdn.aglty.io/stratas-advisors/upload/mceclip0_20250716120320.png?w=800" width="634" height="415">

<h3>The detailed report is available to <a href="~/services/services?ContentID=155" title="" target="_blank" rel="noopener">Global Hydrogen Outlook</a> members. <a href="~/about/contact-us" title="" target="_blank" rel="noopener">Contact us</a> for access.</h3>

Low Carbon Fuels

Global

Global Hydrogen Outlook,Integrated Market Assessment,Assessment of the Fuels Sector -