Pro: ‘green hydrogen market could grow 200-fold over the next decade’

on Feb 21, 2022
  • Michele DellaVigna sees green hydrogen market growing 200-fold over the next decade.
  • The Goldman Sachs' expert sees hydrogen as indispensable for the green transition.
  • He explained ways to invest in this forthcoming growth on CNBC's "Squawk Box Europe".

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The global green hydrogen market could grow 200-fold over the next decade, says Goldman Sachs’ Michele DellaVigna. At present, it is valued at roughly $1.83 billion.

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DellaVigna’s comments on CNBC’s ‘Squawk Box Europe’

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The commodity equity business unit leader in EMEA at the Wall Street bank sees hydrogen as indispensable for the green transition. This morning on CNBC’s “Squawk Box Europe”, he said:

We can’t go to net zero through renewable power only. We need something that takes today’s role of natural gas, especially to manage seasonality and intermittency. And that something is hydrogen. It’s a very powerful molecule that we need to produce without carbon dioxide emissions.

DellaVigna expects hydrogen to be a $15 trillion market in the not-so-distant future and represent 15% of the energy markets globally at the least. Precedence Research is also bullish on green hydrogen and expects this market to grow at a compound annual growth rate of 54% from 2021 to 2030.

How to benefit from the imminent growth in the hydrogen market?

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According to the Goldman Sachs’ expert, long-term investors are in luck since they have more than one way to benefit from the forthcoming exponential growth in the hydrogen market. He added:

There are two ways to invest in hydrogen. One is to buy the pure-play electrolyser companies with exposure to hydrogen. The other is to invest through conglomerates that already have hydrogen as a part of their ongoing businesses. This includes energy services, industrial gas, and oil and gas companies.

In 2020, Europe was the world’s largest market for green hydrogen. Late last year, New York-based Plug Power Inc partnered with SK Group to build a hydrogen fuel cell Gigafactory in South Korea by 2024.

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