New TECH Report - Hydrogen Production Technologies (2025 Program)

Hydrogen Production Technologies is one in a series of reports published as part of NexantECA’s 2025 Technoeconomics – Energy & Chemicals (TECH) program

Overview

Hydrogen is a key feedstock used in the chemical industry for producing ammonia, methanol, cyclohexane, hydrogen peroxide, aniline, and oxo alcohols, amongst others. It is also used in the refining sector to decrease the sulfur content of fuel streams as well as in various other industries such as steel, float glass, food processing, pharmaceuticals and heating and in several emerging applications.

This TECH report provides an updated overview of the conventional, green and developing technologies to produce hydrogen along with a high-level analysis of the business and strategic considerations from the perspective of a company entering or expanding into the hydrogen market.  The following issues are addressed in this report: 

• What are the different routes for hydrogen production?

• Who are the main technology holders and licensors and how do their technologies differ?

• What are the differences across conventional and low carbon technologies? Which companies have commercialized blue and low carbon hydrogen processes? 

• Which alternative technologies are being developed?  

• How do the economics compare across processes and regions? Which technology provides the lowest cost of production? 

• What is the business and regulatory environment like for hydrogen today?

• How does carbon intensity change for the different hydrogen production routes?

Commercial Technologies

Most hydrogen is produced from natural gas via steam methane reforming (SMR), autothermal reforming (ATR) and partial oxidation (POX) as well as from gasification of fossil fuels such as coal and oil and, increasingly, from water electrolysis (proton exchange membrane - PEM and alkaline) due to its low carbon footprint. In addition, hydrogen from ammonia cracking is a commercially proven pathway that is drawing growing interest as a viable method for clean hydrogen distribution.

Developing Technologies

This report also reviews developing technologies such as solid oxide electrolysis cell (SOEC) and anion exchange membrane (AEM) electrolysis, waste gasification, steam thermolysis, methanol cracking and methane pyrolysis.

Process Economics

The cost of production and associated carbon intensity via SMR, ATR, POX, coal-based gasification, PEM and alkaline electrolysis as well as ammonia cracking for plants in the United States, Western Europe, and China have been estimated for the first quarter of 2025. The analysis breaks down the key factors in determining the cost of production.

NexantECA also provided a production cost comparison between a grey and a blue hydrogen processes.

Commercial Overview

Commercial Hydrogen Applications

Global 2025 hydrogen demand is estimated at 103 million tons and its demand growth is expected to be boosted in future by new applications. Indeed, hydrogen can also be used to generate electricity and, increasingly, hydrogen is being positioned as an “energy carrier” in fuel cell applications for electric vehicles, offering long ranges and rapid refueling in centralized depots, particularly suited for heavy-duty transport like trucks and trains. 

For 2025, NexantECA reviewed hydrogen demand by end use as well as global hydrogen supply segmented by hydrogen color and by region.