Sectors > Chemicals, Gas and Hydrogen

Decarbonise industry while reinventing how energy is made.

A Global Industry, Built to Decarbonise Industry

The chemicals, gas, hydrogen and CO2 capture sector sits at the core of industrial decarbonisation, with global hydrogen demand reaching close to 100 million tonnes and global CO2 capture capacity exceeding 50 million tonnes per year.

 

This scale spans every major hub:

  • United States: a $20.1 billion hydrogen market in 2025, the world’s largest national market, backed by the 45Q tax credit that has made it the global leader in carbon capture, with North America hosting around 40% of global CCUS capacity.
  • Germany: Europe’s largest chemical industry, with €222.7 billion in turnover in 2024, and a target of 10 GW of electrolysis capacity by 2030, among the highest in the world.
  • Canada: one of the world’s most concentrated carbon capture and storage hubs, anchored in Alberta and Saskatchewan, where large scale projects such as Shell’s Polaris facility target close to 650,000 tonnes of CO2 captured per year.

 

Companies across the sector share the same challenge: scaling low carbon hydrogen and carbon capture from pilot projects to industrial infrastructure, while managing high costs and long investment cycles. This is where ABGi operates, helping them secure R&D tax credits and innovation funding to power that transition.

Gas, hydrogen, chemicals, CO2 capture | ABGI

Key Strategic and Operational Challenges for the Sector

Scaling Low Carbon Hydrogen

Bridging the cost gap between low carbon and fossil based hydrogen while building the infrastructure needed for industrial scale production.

Carbon Capture Deployment

Moving CO2 capture projects from pilot scale to commercial infrastructure across hard to abate sectors such as cement, steel and chemicals.

Feedstock and Energy Security

Securing reliable access to low carbon electricity and natural gas feedstocks amid volatile energy markets.

Regulatory and Funding Complexity

Navigating evolving carbon pricing mechanisms, hydrogen certification schemes and public funding frameworks across regions.

Infrastructure and Transport

Building pipelines, storage sites and hydrogen backbones capable of connecting production hubs to industrial users.

Capital Intensity and Long Investment Cycles

Financing multi billion euro projects with long payback periods and uncertain demand signals.

Key figures for the sector 

100M

Tonnes of global hydrogen demand per year

50M

Tonnes of CO2 capture and storage capacity currently in operation worldwide

430M

Tonnes of CO2 capture capacity expected globally by 2030

1%

Share of global hydrogen production that is currently low emissions

Focus on the 4 Strategic Levers

Innovation

  • Research and development of next generation electrolysers and lower cost hydrogen production pathways.
  • Development of new carbon capture technologies, including direct air capture and chemical looping.
  • Innovation in CO2 utilisation, converting captured carbon into fuels, materials and chemicals.

Operations & Performance

  • Scaling production from pilot to industrial capacity while managing capital intensive infrastructure.
  • Optimising integration between hydrogen production, carbon capture and existing gas and chemical assets.
  • Building resilient supply chains for critical components such as electrolysers and storage materials.

Technology

  • Digital twins and AI to optimise hydrogen production and carbon capture plant performance.
  • Advanced monitoring and sensor technologies to ensure safe CO2 transport and storage.
  • Automation and process control to improve efficiency across hydrogen and CCUS facilities.

ESG & Sustainability

  • Accelerating the shift from grey to low carbon and green hydrogen across industrial applications.
  • Scaling carbon capture and storage to decarbonise hard to abate sectors.
  • Reducing energy intensity and emissions across chemicals, gas and hydrogen production sites.