Columbia Hydrogen Generation Market Research Report, 2030

Hydrogen production in Colombia has developed to serve various industries, particularly those reliant on chemical processes and energy, and is undergoing a transformation driven by both industrial needs and environmental considerations. Initially, hydrogen was produced primarily through methods like steam methane reforming (SMR), which utilizes the country’s vast natural gas resources. This method has been widely used in sectors such as petrochemicals, refining, and ammonia production. However, with global attention increasingly focusing on cleaner energy sources, there has been a shift towards more sustainable methods of hydrogen production. Electrolysis, which uses renewable electricity to split water into hydrogen and oxygen, is emerging as a cleaner alternative, though its adoption remains limited due to high capital costs and infrastructure needs. The growing interest in hydrogen as a key part of reducing carbon emissions is driving Colombia to explore green hydrogen solutions, especially in sectors like transportation, where fuel cells can be used in vehicles to reduce dependence on traditional fossil fuels. As the world moves toward a low-carbon economy, Colombia is increasingly considering how to integrate green hydrogen production with its broader energy transition strategies. Despite the country's strong position in terms of natural gas, the shift to cleaner hydrogen faces challenges such as high production costs, limited renewable energy infrastructure, and the need for advanced technologies in areas like energy storage and distribution. The country's hydrogen market is also constrained by a lack of clear regulations and policies that would encourage further investment. This gap presents a challenge to developing a stable and competitive market for hydrogen, particularly for the emerging green hydrogen sector. Additionally, while there is significant interest in hydrogen for transportation and power generation, the current infrastructure for hydrogen production, storage, and distribution remains underdeveloped. According to the research report "Colombia Hydrogen Generation Market Research Report, 2030," published by Actual Market Research, the Colombia Hydrogen Generation market was valued at more than USD 500 Million in 2024. The hydrogen market in Colombia is steadily growing, with increasing demand driven by both traditional uses in industries like refining and ammonia production, as well as emerging sectors focused on green energy solutions. Recent trends indicate a shift toward cleaner hydrogen production methods, particularly through renewable energy sources such as wind and solar. This transition is fueled by Colombia’s commitment to sustainability and reducing carbon emissions, and the market is expected to grow at an accelerated pace as these green hydrogen initiatives gain momentum. The country’s significant natural gas reserves continue to support traditional hydrogen production methods, especially steam methane reforming, which remains a key production method in the refining and petrochemical sectors. However, the growing focus on renewable energy and the development of hydrogen technologies is pushing Colombia to diversify its production capabilities, particularly through electrolysis powered by renewable energy. Leading companies such as Ecopetrol are at the forefront of hydrogen production in Colombia, with plans to incorporate hydrogen into their refining processes, while energy providers like Celsia and Grupo Aval are focusing on integrating renewable energy sources into their hydrogen production strategies. Additionally, new entrants from the renewable energy and technology sectors are capitalizing on the market’s potential for growth, especially in the green hydrogen segment. Significant developments in 2024 include international agreements and partnerships to advance renewable energy projects, with European countries increasingly looking to collaborate with Colombia on hydrogen and clean energy initiatives. With abundant renewable resources, Colombia is well-positioned to become a key player in the global hydrogen market. Despite challenges posed by the COVID-19 pandemic, which caused delays in projects and disrupted supply chains, the market has rebounded, with a renewed focus on clean energy investments. Experts predict continued growth for the hydrogen sector, driven by the country’s expanding infrastructure, increased investment in renewable energy, and the potential for both domestic consumption and export in the coming decade.

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In Colombia, hydrogen generation is categorized into two primary segments: Pure H2 and Hydrogen Mix with Other Gases. Pure H2 refers to hydrogen that is produced without significant impurities, typically generated through methods like steam methane reforming (SMR) or electrolysis. This high-purity hydrogen is essential for industries requiring precise chemical processes, such as refining, ammonia production for fertilizers, and in emerging sectors like fuel cells for transportation. Pure hydrogen is critical in sectors where contaminants can affect processes or product quality. On the other hand, Mix with Other Gases involves producing hydrogen that may be mixed with other gases, such as carbon dioxide or nitrogen. This method is often a byproduct of industrial processes and can be used for specific applications, like power generation in industrial furnaces or as a feedstock in certain chemical processes. Mixed hydrogen is generally less pure and is used in less stringent applications compared to pure H2, especially in sectors where purity is not a primary concern. The Steam Methane Reforming (SMR) process is the most widely used method for hydrogen production in Colombia, primarily due to the country’s abundant natural gas resources. SMR involves reacting methane (CH4) with steam at high temperatures to produce hydrogen and carbon monoxide. This method is favored for its relatively low capital cost and established technology, making it the preferred choice for large-scale hydrogen production. SMR is commonly used in industries like petrochemicals, oil refining, and ammonia production, which are key contributors to Colombia’s economy. Coal Gasification is another technology that can be used, especially in regions where coal is abundant, though it is less prevalent due to environmental concerns. Coal is converted into hydrogen and carbon monoxide under high-pressure conditions with steam and oxygen. Although this method can be used in Colombia's energy and chemical sectors, its environmental impact limits its widespread use. Other technologies include Electrolysis, where electricity (ideally from renewable sources) is used to split water into hydrogen and oxygen. This technology is growing in importance in Colombia as the country focuses on transitioning to greener energy sources. Oil refining and Auto-thermal Reforming (ATR) are also used in Colombia, particularly for specialized applications like hydrogen production for refineries or chemical plants, though these are less commonly deployed. The demand for hydrogen in Colombia is expected to increase as industries adopt cleaner energy solutions and decarbonization strategies. In Colombia's hydrogen generation market, the system types are classified into Captive and Merchant categories. Captive hydrogen systems are those where the hydrogen produced is primarily used by the company generating it, often for internal operations. This system is typically used in industries like refining, chemical manufacturing, or petrochemicals, where hydrogen is required for production processes such as ammonia synthesis or petroleum refining. Captive systems are generally employed when a consistent, on-site supply of hydrogen is needed and are most common in large industrial plants or refineries. On the other hand, Merchant hydrogen systems involve the production of hydrogen that is sold to external buyers. These systems are often utilized by independent producers or in cases where there is excess hydrogen production beyond a company's internal needs. Merchant hydrogen can be supplied to various industries, such as the transportation sector for fuel cells or the energy sector for power generation, and is often produced in facilities specifically designed for this purpose. The energy sources for hydrogen production in Colombia are classified into Natural Gas (N.Gas), Coal, and Others, including oil and renewable energy. Natural gas is the dominant energy source in Colombia’s hydrogen production, particularly through steam methane reforming (SMR). This method is preferred because of Colombia’s relatively abundant natural gas reserves, and it is often used in large-scale hydrogen plants. SMR with natural gas is employed in industries like petrochemicals, ammonia production, and refineries, which are integral to Colombia’s economy. Coal, while less commonly used due to its environmental impact, is another potential energy source for hydrogen production, especially in regions with significant coal reserves. Coal gasification, where coal is reacted with steam and oxygen to produce hydrogen, can be used in areas where coal is locally abundant, though this method is less environmentally favored. Other energy sources, including oil, renewable energy, and even waste, are emerging as alternatives in Colombia’s hydrogen generation sector. The shift towards renewable energy sources, such as solar or wind, for electrolysis is gaining traction as Colombia moves towards cleaner energy solutions. These methods are being explored, especially for green hydrogen production, in line with the country's goals of reducing carbon emissions and embracing sustainable energy. In Colombia, hydrogen plays a crucial role in several industrial applications, each serving distinct needs within the economy. Methanol production is one of the primary applications for hydrogen in the country. Methanol is a key chemical feedstock for industries like plastics, paints, and solvents, and hydrogen is essential for its production through the steam reforming of methane. Hydrogen is combined with carbon dioxide or carbon monoxide in methanol synthesis, making it a vital component for Colombia’s growing chemical sector. Ammonia production is another significant application, especially in the agricultural industry, where ammonia is used to create fertilizers. Hydrogen is required to produce ammonia through the Haber-Bosch process, where hydrogen reacts with nitrogen at high temperatures and pressures. This process is particularly important in Colombia, as the country is a major producer of agricultural products and fertilizer, and hydrogen plays a pivotal role in sustaining this industry. Petroleum refining is another major hydrogen application in Colombia, where it is used for hydrocracking and desulfurization. Hydrogen helps remove sulfur and other impurities from crude oil, producing cleaner fuels and meeting environmental standards for fuel quality. This is particularly relevant in Colombia's oil refining industry, which supports both domestic consumption and export. Transportation is an emerging application for hydrogen, particularly with the growing interest in fuel cell vehicles (FCVs) as a cleaner alternative to conventional combustion engines. Hydrogen is used in fuel cells to produce electricity, which powers electric vehicles, including buses, trucks, and trains. While still in its infancy in Colombia, this sector is gaining momentum as part of the country's broader move towards reducing carbon emissions and improving air quality. Power generation through hydrogen, though still in the developmental phase, holds promise in Colombia as part of the transition to renewable energy. Hydrogen can be used in gas turbines or fuel cells to generate electricity, providing an alternative to fossil fuels. Lastly, Others include diverse applications such as hydrogen in the steel and iron industry for reducing iron ore, in electronics for semiconductor production, and in the manufacturing of LEDs, displays, and photovoltaics. These high-tech applications are particularly relevant in Colombia's growing industrial and technology sectors, where hydrogen is used as a reducing agent or in various chemical reactions. Hydrogen's versatility makes it a crucial component across a broad spectrum of industries, contributing to Colombia’s economic development and sustainability goals.

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Nikita Jabrela

Business Development Manager

Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Hydrogen Generation Market with its value and forecast along with its segments • Region & country wise Hydrogen Generation market analysis • Application wise Hydrogen Generation distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Applications • Methanol Production • Ammonia Production • Petroleum Refinery • Transportation • Power Generation • Others (Steel+Iron+commercial uses+semiconductors, LEDs, displays, photovoltaic segments, and other electronics etc)

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By Technology • SMR =steam methane reforming • Coal gasification • Others (Electrolysis, oil/refining or auto-thermal reformation ) By Energy Source • N.GAS • COAL • Others (oil, Renewable Energy, etc.) The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to chemical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.