MARKET REPORT
Overcoming Challenges : The
Promising Hydrogen Valve Market
The IEA estimates more than 7 trillion USD needed to be spent towards the hydrogen segment to achieve net zero emissions of greenhouse gases by 2050 . The organization also cites the disparity between the pledges being made by nations and the necessary steps being taken . Hundreds of millions of dollars will likely be spent on valves for hydrogen applications . There is an existing market in the steel and chemical industries and automotive companies are racing to be the first to use hydrogen fuel cells . The power industry is planning to burn hydrogen in gas turbines to replace at least some of the natural gas .
By Bob McIlvaine , President & Founder – The McIlvaine Company
rently , less than 100 million tonnes of hydrogen is consumed , and it is estimated that 90 % of the hydrogen which will be used in the next decade will be tied to environmental improvement .
These opportunities will have the chance to thrive with the advent of new applications ; this presents challenges to valve suppliers . These challenges include determining the type of market that suppliers should accommodate and which products should be adapted to achieve significant market share .
Valve designs are needed for refineries and steel mills , and these design plans will be different from the equipment that is used for hydrogen fuel cells used in long-haul trucking . Even within an application , there could be
Certain applications such as heavyduty transport including rail , ship , or land , are more promising than others for the short-term transition to hydrogen . However , looking toward long-term goals , the attractiveness of hydrogen from a renewability standpoint is increasingly compelling . The challenges here lie within the wind , solar , hydropower , and geothermal sources ; these resources and markets are likely to face gaps . Transmission can be costly and involve some negative environmental aspects .
Hydrogen can be transported as a compressed gas or as a liquid . It can be transported as ammonia without it needing to be stored or transported in extremely cold temperatures . Curprocess , instrument , transfer , or transport requirements that involve specialized valve designs .
Facts , Factors , and Forecasts
Based on the many different variables in markets and technologies , valve suppliers must analyze each niche with the appropriate facts , factors , and forecasts . For example , the power market can be significantly large , however , the most present activity takes place in transportation . It is better to view hydrogen as the aggregate of thousands of niches rather than a single market . South Korea , for example is taking the lead in transport . China has been viewed separately due to its size and political uncertainties . The country lacks natural gas and is the leading converter of solid fuels to gas . The hundreds of coal gasification plants could potentially be converted to produce hydrogen . Much of the potential renewable energy deployed in electrolyzers will come from places such as Iceland and its use of geothermal power . Arab states , on the other hand , utilize their deserts for solar energy capture . Some predict that electrolyzers will produce more electricity than any other fuel source by the turn of the century .
Each niche has unique facts and factors which shape market forecasts 1 , value proposition , market share , and lowest total cost of ownership . The Most Profitable Market ( MPM ) for a supplier is an aggregation of niches , where one can generate a high market share and EBITDA . This is possible when a product can be adapted to offer the lowest total cost of ownership ( LTCO ). For example , Crane ChemPharma & Energy offers a new globe valve design with some unique claimed advantages . The bellows Globe Valve is jacketed and otherwise designed to minimize heat transfer .
Considering Jacketed Bellows Globe Valves
Valve facts are converted and used as factors to consider that impact the cost of ownership . The differences in
16 Valve World Americas | March 2023 • www . valve-world-americas . net