World's largest green hydrogen and ammonia production facility unveiled by Envision Energy, a Chinese company
The global green hydrogen market, valued at over $12 billion in 2025, is accelerating rapidly due to global decarbonization mandates and policy support. While the broader hydrogen market, including grey, blue, and other forms, was valued at approximately $242.7 billion in 2023, the green hydrogen sector is projected to reach $410.6 billion by 2030, reflecting a compound annual growth rate (CAGR) of 7.8%.
The explosive growth of the green hydrogen market is driven by maturing technologies, falling renewable energy costs, and supportive policies. National strategies in Germany, the UK, and Japan are setting ambitious targets, with Germany aiming for at least 10 GW of green hydrogen production by 2030, while the UK stipulates that at least 5 GW of its 10 GW hydrogen capacity must be green. Major initiatives like the US Inflation Reduction Act (IRA) and its section 45V tax credits are also catalyzing electrolyzer deployment in North America.
The green hydrogen ecosystem features a mix of industrial gas giants, specialized technology firms, and energy majors. Leading suppliers of hydrogen solutions include Linde plc, Air Products and Chemicals, Inc., and Air Liquide, which are increasing their investments in green hydrogen production and infrastructure. Companies at the forefront of electrolyzer manufacturing, such as Plug Power, Nel Hydrogen, Cummins, and ITM Power PLC, are particularly active in the PEM segment.
Green hydrogen is predominantly produced via three types of electrolysis: Proton Exchange Membrane (PEM), Alkaline, and Solid Oxide. PEM electrolysis, favoured for its compatibility with intermittent renewable energy sources, is seeing rapid industrial adoption.
Key end-use sectors for green hydrogen include heavy industry (steel, chemicals), refining, power generation, and heavy transport (shipping, aviation, and trucks). The automotive sector, through fuel cell vehicles, remains a niche but visible application.
Envision Energy, a Chinese clean energy company, is making significant strides in the green hydrogen market. The company aims for net-zero emissions by 2050 and became carbon neutral in 2022. Envision Energy plans to cut Scope 1 and 2 emissions by 50% by 2030, using 2020 as the baseline. The company also plans to grow its ammonia capacity to 1.5 million tonnes each year by 2028. Envision has launched the world's largest green hydrogen and ammonia plant in Chifeng, Inner Mongolia, which operates completely on off-grid renewable sources like wind, solar, and battery storage. The plant's capacity is 320,000 tonnes of green ammonia each year and plans to begin exports in the fourth quarter of 2025.
The European Union and the United States are implementing policies such as hydrogen subsidies and certification standards to speed up adoption. The NEOM Green Hydrogen Project in Saudi Arabia aims to produce 1.2 million tonnes of ammonia annually, while the Australian Renewable Energy Hub aims to harness 26 GW of solar and wind for hydrogen and ammonia production.
Envision Energy has secured a major offtake agreement with Marubeni Corporation of Japan for green ammonia supply. The green hydrogen market is forecasted to reach around $300 billion by 2035, underscoring its status as the fastest-growing segment within the hydrogen sector. As the global energy transition continues, green hydrogen is poised to play a crucial role in meeting decarbonization targets and powering a sustainable future.
- The rapid growth in the green hydrogen market is fueled by advancements in technology, decreasing renewable energy costs, and supportive policies.
- Strategy in countries like Germany, the UK, and Japan involves setting ambitious goals for green hydrogen production, such as Germany's aim of at least 10 GW by 2030.
- The US Inflation Reduction Act (IRA) and its Section 45V tax credits are stimulating electrolyzer deployment in North America.
- Key players in the green hydrogen ecosystem consist of industrial gas giants, technology firms, and energy majors, with leading suppliers including Linde plc, Air Products and Chemicals, Inc., and Air Liquide.
- The primary sectors adopting green hydrogen are heavy industry, refining, power generation, and heavy transport, with the automotive sector employing fuel cell vehicles as a niche application.
- Envision Energy, a Chinese clean energy company, is focused on achieving net-zero emissions by 2050 and has launched the world's largest green hydrogen and ammonia plant in Chifeng, Inner Mongolia, powered by off-grid renewable sources like wind, solar, and battery storage.
