Global Hydrogen Compressors Market - Growth, Trends and Forecasts 2018 - 2023

1
GLOBAL HYDROGEN COMPRESSOR MARKET

(2018 – 2023)
Report
Report Global Hydrogen Compressor Market
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TABLE OF CONTENTS 2
1. EXECUTIVE SUMMARY 6.4 Threat of Substitutes
2. RESEARCH APPROACH AND METHODOLOGY 6.5 Intensity of Competitive Rivalry
3. MARKET OVERVIEW 7. MARKET SEGMENTATION AND ANALYSIS (Overview, Market Size,

and Demand Forecast till 2023)
3.1 Introduction
7.1 By Technology
3.2 Market Size and Demand Forecast till 2023
7.1.1 Single-stage
3.3 Recent Trends and Developments
7.1.2 Multistage
3.4 Government Policies and Regulations
7.2 By Type
4. MARKET DYNAMICS
7.2.1 Oil-based
4.1 Drivers
7.2.2 Oil-free
4.2 Restraints
7.3 By End-user Industry
4.3 Opportunities
7.3.1 Chemical
5. SUPPLY CHAIN ANALYSIS
7.3.2 Oil & Gas
6. INDUSTRY ATTRACTIVENESS - PORTER’S FIVE FORCES ANALYSIS
7.3.3 Other End-user Industries
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants

TABLE OF CONTENTS 3
8. REGIONAL MARKET ANALYSIS (Overview, Market Size, and Demand

8.3.5 Spain
Forecast till 2023)
8.1 North America 8.3.6 Russia
8.1.1 United States 8.3.7 Rest of Europe
8.1.2 Canada 8.4 Middle East & Africa

8.1.3 Mexico 8.4.1 Saudi Arabia
8.2 Asia-Pacific
8.4.2 United Arab Emirates
8.2.1 China
8.4.3 Nigeria
8.2.2 India
8.4.4 Rest of Middle East & Africa
8.2.3 Japan
8.5 South America
8.2.4 Australia
8.2.5 South Korea 8.5.1 Brazil
8.2.6 Rest of Asia-Pacific 8.5.2 Argentina
8.3 Europe 8.5.3 Rest of South America

8.3.1 United Kingdom
9. KEY COMPANY PROFILES (Overview, Products & Services, Financials*,
8.3.2 Germany Recent Developments, and Analyst View)
8.3.3 France
9.1 Corken Compressors
8.3.4 Italy
9.2 Ariel Corporation

TABLE OF CONTENTS 4
9.3 Burckhardt Compression AG
9.4 Hydro-Pac Inc.
9.5 Haug Kompressoren AG
9.6 Sundyne
9.7 Howden Group
9.8 Indian Compressors Ltd
9.9 Atlas Copco
9.10 Gardner Denver
10. COMPETITIVE LANDSCAPE
10.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
10.2 Strategies Adopted by Key Players
11. FUTURE OF THE MARKET
12. APPENDIX
*Subject to availability on the public domain

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1. EXECUTIVE SUMMARY

1. EXECUTIVE SUMMARY 6
Recent developments in hydrogen-related infrastructure have opened up new Hydrogen Compressor Market: Size and Demand Forecast in
avenues for hydrogen compressors, across the world. Currently, most of the USD billion, Global, 2017-2023
compressors used for gaseous hydrogen compression are either positive
1 displacement compressors, or centrifugal compressors. Positive displacement 1.94
Revenue (In USD billion)

1.74 1.84
1.57 1.65
compressors can be reciprocating or rotary. However, the high initial cost of 1.42 1.49
current compressor technologies is not feasible for hydrogen refueling stations.
Most of the produced hydrogen is being used as feedstock for industrial

applications. Globally, the demand for hydrogen is dominated by the ammonia
2 (more than 50%), methanol, and oil refining industries. The other hydrogen
consumer industries include - the electronics, metals, and food industries. 2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
Hydrogen fuel cell vehicles are one of the latest innovations in the automotive
Hydrogen Compressor Market: Size and Demand Forecast in
3 industry, and are projected to create considerable opportunities for the growth of
the global hydrogen compressor market. USD billion, by Region, Global, 2017-2023
2.00
Major hydrogen compressor manufacturers, such as PDC Machines, have entered
In USD billion
partnerships with gas producers, researchers, and technology companies, to 1.50
4 create practical and commercial worldwide acceptance of hydrogen, as an energy 1.00
source.
0.50
For heavier, dirty, and difficult gases (heavy hydrocarbons), oil-free hydrogen
0.00
compressors are mostly preferred, as these types of compressors eliminate 2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
5 concerns regarding oil and gas contamination, because there is no lubricant in the
North America Asia-Pacific Europe Middle East & Africa South America
compressor chamber.

1. EXECUTIVE SUMMARY 7
Hydrogen Compressor Market: Revenue Share (%), by

Multi-stage compressors are preferred over single-stage compressors, as
Technology, Global, 2017
5 more stages are needed to increase the required final pressure. The
former allows for significant savings and increased compressor efficiency.
21%
Refueling stations and stationary power sites face hydrogen delivery
Single-stage
challenges, which are expected to be major drawbacks, in the demand
Multistage
for hydrogen compressors in refueling stations. Research is being carried
6 out, to increase the reliability and reduce the cost of hydrogen 79%
compressors, thereby overcoming the challenges faced by the market

studied.
Hydrogen Compressor Market: Revenue Share (%), by Type, Hydrogen Compressor Market: Size and Demand Forecast in
Global, 2017 USD billion, by End-user Industry, Global, 2017-2023
2.00
1.50
In USD billion
30%
Oil-based 1.00
Oil-free 0.50
70%
0.00
2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
Chemical Oil & Gas Others

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2.1 Study Deliverables
2. RESEARCH METHODOLOGY 2.2 Scope of the Market
2.3 Research Phases

2.1 STUDY DELIVERABLES 9
AIMS AND OBJECTIVES OF THE STUDY
• To identify and analyze the factors instrumental in influencing the hydrogen compressor market, in addition to specific
scenarios, important commercial developments, and prospective opportunities.
• To identify the regions poised for the fastest growth and analyze the competitive landscape.
• To estimate the current market size and demand forecasts, by type, technology, and region, till 2023
COMPANIES COMPANIES
STUDY PERIOD BASE YEAR
ANALYZED PROFILED
2014-2023 2017 20 10
GEOGRAPHICAL SCOPE –GLOBAL SEGMENTS COVERED
MARKET DYNAMICS
PROFILES OF KEY PLAYERS
COMPETITIVE LANDSCAPE
VALUE CHAIN ANALYSIS
SEGMENTED BY TECHNOLOGY, TYPE, END-USER

INDUSTRY, AND GEOGRAPHY

2.2 SCOPE OF THE MARKET 10
Global Hydrogen Compressor Market
By Technology By Type By End-user Industry By Geography
Single-stage Oil-based Chemical North America
Multistage Oil-free Oil & Gas Asia-Pacific
Others Europe
Middle East & Africa
South America

2.3 RESEARCH PHASES 11
• Company Annual Reports • Insights from Data

• OEMs
• Journals and Forecasts
• End-user Companies • Linear Growth Model
• Government Publications Compiled into One
• Government Agencies
• Paid Data Sources Report
SECONDARY DISCUSSION PRIMARY DATA ECONOMETRIC EXPERT REPORT

RESEARCH GUIDE RESEARCH TRIANGULATION MODELLING VALIDATION WRITING
• Revalidation of Numbers from

• Company-related Queries • Industry Experts
Secondary through Primaries
• Market-related Queries • Consultants
• Combination of Top-down and
• Company Financials • Subject-matter Experts
Bottom-up Approaches
• In-house Experts
Primary Interviews (%), by
Designation
6%
14%
35% C-level
Director Level
Manager Level
Others
45%

12
3.1 Introduction
3.2 Market Size and Demand Forecast until 2023

3. MARKET OVERVIEW 3.3 Recent Trends and Developments
3.4 Government Policies and Regulations

3.1 INTRODUCTION 13
• Hydrogen is the most promising energy carrier for the future. It is high • With improving hydrogen production, storage, and distribution infrastructure,
energy effective and low polluting fuel. Hydrogen gas is typically produced at the market studied is expected to prosper, over the forecast period.
low pressures (around 20-30 bar).
• Hydrogen fuel cell vehicles are one of the latest innovations in the automotive
• Before transport, the gas must be either pressurized and delivered as a industry, and are projected to create considerable opportunities for the growth
compressed gas, or liquefied. Hydrogen compression is achieved by a of the market studied. Hydrogen compressor manufacturers, such as Howden
mechanical device that increases the pressure of the gas by reducing its Joinery Group PLC and Hitachi Ltd, have already started developing
volume. Most compressors used for gaseous hydrogen compression are technologies, to cater this emerging market.
either positive displacement compressors or centrifugal compressors, in
• On the other hand, the alternative for mechanical compression is an
which, positive displacement compressors can be either reciprocating or
electrochemical hydrogen compressor, currently in the research and
rotary.
development stage.
• Hydrogen compressors find applications in various industrial applications
• The concept of electrochemical hydrogen compressor includes the use
that involve hydrodesulphurizing, hydrotreating, and hydrocracking
of electrochemical reactions, metal hydrides, and ionic liquids, using
processes. Moreover, compressed hydrogen can be used as alternative
proton exchange membranes flanked by electrodes and an external
fuels and for R&D applications.
power source, to drive the dissociation of hydrogen at the anode and its
• As of December 2017, the global refinery base capacity for hydrogen was recombination at higher pressures, at the cathode.
around 98.14 mbpd, and is expected to reach 104.4 mbpd, by 2021. Further,
• Another alternative compressor technology is a metal hydride
in the refining industry, the demand for hydrogen has been increasing for
compressor, which uses metals that form hydrides via exothermic
desulphurization process, as the level of sulfur has risen steadily, due to use
reactions and release hydrogen at high pressures, when heat is applied.
of heavier crude and cheaper high-sulfur crude, over the past two decades.
However, this technology is yet to be commercialized.

3.1 INTRODUCTION 14
• During the recent years, various parts of the world have witnessed significant developments, in hydrogen infrastructure. The development has been mostly observed
in the hydrogen pipeline and hydrogen refueling stations. Most of the pipelines are located where large hydrogen users, such as petroleum refineries and chemical
plants, exist.
• In 2004, there were about 1,448 km and 1,497 km of low-pressure hydrogen pipelines, in the United States and Europe, respectively. As of September 2016, the
length of hydrogen pipelines increased to 2,608 km in the United States, about 1,598 km in Europe, and around 337 km in the rest of the world. The global hydrogen
pipeline length was estimated to be around 5,000 km, in 2017. In addition, roughly 42% of the share in the hydrogen pipeline installation market is accounted for by
Air Liquide, followed by Air Products (26%), and Linde & Praxair (22%).
Country Hydrogen Pipeline Length • However, on the flipside, the currently available hydrogen compressor
(As of Sep 2016) technology is unlikely to meet futuristic infrastructure demands, in a cost-
United States 2,608 km effective manner. The compression of hydrogen accounts for almost 60-70% of
Canada 147 km the cost, in the hydrogen supply chain. Further, compression costs include -
Belgium 613 km capital expenditure, energy consumption, and operations and maintenance
France 303 km costs.
Germany 390 km • The current challenges in hydrogen compressor technology include - volatility
The Netherlands 237 km of the raw material prices (stainless steel), initial capital costs, and more
United Kingdom 40 km frequent maintenance intervals from the on/off cycling of the compressors, due
South Korea 82 km to low station demand. Cutting down compressor costs could be challenging,
Singapore 40 km because, although the compression technology is relatively mature, the
China 25 km material properties and quality requirements for fuel-cell-grade hydrogen pose
Rest of the World 57 km challenges, to several existing compression technologies.

3.2 MARKET SIZE AND DEMAND FORECAST UNTIL 2023 15
Hydrogen Compressor Market: Size and Demand Forecast in USD billion, Global, 2017-2023
Revenue (In USD billion)
1.94
1.84
1.74
1.65
1.57
1.49
1.42
2017 (a) 2018 (e) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)

3.3 RECENT TRENDS AND DEVELOPMENTS 16
PROPOSAL FOR THE WORLD’S LARGEST SOLAR AND WIND STARTUP OF FIRST HYDROGEN PIPELINE NETWORK IN
POWERED HYDROGEN PLANT THE MIDDLE EAST
• In March 2018, establishment of the world’s largest solar and wind powered • In May 2017, the first hydrogen pipeline network was inaugurated in the
hydrogen plant was proposed by the Labor Government for Crystal Brook, in Middle East, in the industrial city of Jubail, on the east coast of Saudi
South Australia's Mid North. The government has committed to funding of USD
Arabia. The pipeline network is designed to transport large volumes of
25 million, in terms of grants and loans, to Neoen, a renewable energy company.
hydrogen, to customers in both Jubail I and Jubail II.
• The company is poised to finalize plans, accomplish approvals for development,
• The pipeline is expected to play a significant role in the development of
and commence construction of the plant. After completion, solar and wind energy
the Saudi Arabian downstream industry. The pipeline has been developed
would be used to power the Crystal Brook facility, to produce up to 20,000 kg of
by Air Liquide, and is 21 km long.
hydrogen, daily.
EMERGENCE OF HYDROGEN FUEL-CELL TECHNOLOGY HYDROGEN MOBITY PROJECT
• The emergence of hydrogen fuel-cell technology has led to widespread • In Europe, the Hydrogen Mobility Project was announced in 2015, which is
research and development, for the commercialization of its usage, which projected to extend until 2021. The first project involved investments worth
have led to a reduction in fuel cell cost, volume, and mass. There has been EUR 68 million, for 300 fuel cell vehicles (FCEVs) and 29 hydrogen
a decline in the cost of hydrogen storage. refueling stations (HRS), mostly in Germany. In 2016, additional
T
investments worth EUR 100 million were announced, for the deployment
• In May 2018, Toyota announced its plans to set up a facility to mass
and operation of 1,230 FCEVs and the addition of 20 extra HRSs. Two
manufacture hydrogen fuel cell stacks and plans, to ramp up hydrogen fuel
types of fuel-cell electric vehicles are planned to be deployed – fuel cell
cell cars, by 2020. The increasing investments to commercialize hydrogen
electric cars from Daimler and Hyundai, and fuel cell range-extended vans
fuel cell technology are expected to drive the market studied.
from Symbio Fcell, in collaboration with Renault.

3.4 GOVERNMENT POLICIES AND REGULATIONS 17
• The European Union is planning to reduce its carbon emissions to 80% by 2050, and is focusing on fuel cells, to achieve its targets. The
major focus is on the residential and the transport sectors. Fuel cells can be used in the transportation sector, to help reduce pollution in
residential and commercial establishments, power generation, and space heating. The major constraints are – technology-switching costs
(as the fuel cell technology is constantly evolving) and the lack of the hydrogen fuel infrastructure.
• The United States, as a major industrialized nation that houses heavy, medium-scale, and small-scale industries, is striving to improve its
energy efficiency. Being one of the world’s largest energy consumers, the country has set ambitious emission reduction goals. In addition,
the shale gas boom has declined, and natural gas prices are declining. This phenomenon has augmented the demand for hydrogen fuel
cells, in both the power and automotive sectors.
• In 2016, Oregon’s ‘Clean Fuel Standard’ took effect, which includes reduction in the annual average carbon intensity of Oregon’s
transportation fuels (gasoline and diesel) by 10% of the 2015 level, by 2025. Subsequently, the adoption of alternative fuels, like hydrogen,
is likely to increase in the region.
• Italy has a clear vision about the deployment of hydrogen fuel cells, which enhances the chances of meeting the 2050 target of curtailing
carbon emissions. Italy intends to create a vehicle fleet of at least 15 million hydrogen cars. The production targets of hydrogen are in line
with the goal of stimulating and developing the market, to be a world leader. Further, the Italian Association intends to use at least 40% of
the hydrogen for transport and the remaining for power production.
• The Japanese Government has rolled out ambitious goals to promote hydrogen fuel cells, which have led to an investment of USD 460
million and made significant contributions for setting up of hydrogen stations, in 2015. Japan has been striving to develop hydrogen
economy, as a part of its energy and industrial policy, with an intent to prevent environmental pollutions. One such initiative is Japan’s
Hydrogen Highway, which provides fuel to hydrogen fuel cell vehicles, with multiple filling stations in the network.

18
4.1 Drivers
4. MARKET DYNAMICS 4.2 Restraints
4.3 Opportunities

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4.1.1 Increasing Demand for Hydrogen from End-user Industries

4.1 DRIVERS
4.1.2 Development of Hydrogen Pipeline Infrastructure

4.1.1 INCREASING DEMAND FOR HYDROGEN FROM END-USER INDUSTRIES 20
• Hydrogen is mainly used in the refining industry, as a petrochemical for • Another major rise in demand for hydrogen stems from ammonia
desulphurization and hydrocracking. In the chemical industry, it is used to manufacturers, as combining hydrogen with nitrogen produces ammonia (NH3).
produce ammonia and fertilizer, for agriculture. It is also used in applications,
• Ammonia capacity is increasing, mainly in areas where the availability and price
such as metal production and fabrication, methanol production, food
of natural gas are lower, in particular, the United States and the Middle East.
processing, and electronics. As an industrial gas, hydrogen is already a large
Hence, the rising ammonia consumption, number of upcoming ammonia plants
global business, with robust fundamentals.
across the world, and abundance of feedstock are expected to increase the
• In the oil refinery industry, over the past two decades, the level of sulfur has deployment of hydrogen compressors, in this industry.
steadily increased, due to use of heavier crude and cheaper, high-sulfur
• After the ammonia manufacturing and petrochemical industries, the major end
crude.
user of hydrogen is the methanol industry. Methanol is a basic chemical that is
• This situation has forced the refining industry to opt for additional facilities, produced from natural gas, with the help of hydrogen. A new and rapidly
such as ultra-desulfurization for petrol and diesel, to meet the stringent sulfur growing demand for methanol is in the production of light olefins (methanol-to-
emission standards. Therefore, the use of hydrogen, which is used for olefins, MTO). The demand for methanol is expected to rise to more than 110
hydrocracking and desulphurization, has also increased. million metric ton, by 2022, from the current estimate of about 85 million metric
ton. Currently, there are about 90 methanol plants operational, across the world.
• In addition, the increasing demand for hydrogen from the transportation sector
This number is expected to rise by 2022, mainly in countries, such as China, the
(fuel cell electric vehicles) is expected to drive the growth of the market
United States, Iran, and countries in Northeast Asia and Europe.
studied, during the forecast period. The number of hydrogen refueling stations
(HRS) is increasing, worldwide. At the end of 2017, the number of HRS in • Over the forecast period, hydrogen is expected to witness an increase in the
operation was around 327, with an addition of 64 stations during the year. number of applications. With improving hydrogen manufacture, storage, and
Similarly, the number of planned HRS for the short term, and until 2050, are distribution infrastructure, the market studied is expected to witness healthy
projected to increase. growth, over the forecast period.

4.1.2 DEVELOPMENT OF HYDROGEN PIPELINE INFRASTRUCTURE 21
• As an industrial gas, hydrogen is a large global business, with strong • In 2004, there were 900 miles (1,448 km) of low-pressure hydrogen pipelines in
fundamentals. Various countries across the world are now considering hydrogen the United States and 930 miles (1,497 km) in Europe. As of September 2016,
as the fuel of the future, due to its energy storage applications. the length of hydrogen pipelines increased to 1,621 miles (2,608 km) in the
• There are two ways in which hydrogen can be served to users. First, as United States, 993 miles (1,598 km) in Europe, and 209 miles (337 km) in rest
hydrogen generated on-site, or generated in a central production facility and sold of the world.
to a consumer by pipeline, bulk tank, or cylinder truck delivery. The second way • The global hydrogen pipeline length was estimated to be around 5,000 km, in
is known as captive hydrogen generation, which is hydrogen produced by the 2017. If hydrogen is to be transported via pipelines, compressors designed for
consumer for internal use and consumed at the point of usage. hydrogen transmission are needed. Hence, with an increase in the pipeline
• Hydrogen can be stored and transported in three forms - compressed hydrogen length during the forecast period, the demand for hydrogen compressors is
gas (CGH2), liquid hydrogen (LH2), and solid storage of hydrogen (SSH2). expected to increase.
Further, providing hydrogen to the end user or consumer can be carried out in • In addition, the development of hydrogen refueling stations is expected to
various ways. The most common method of hydrogen supply, in the short range, augment the demand for compressor with lower compression throughput, but
is likely to be done with road tankers. Larger quantities of hydrogen can be much higher compression ratios.
supplied by road tankers that transport liquefied hydrogen or through pipeline
Hydrogen Pipeline Length in km, by Company, Global, as of
delivery of gaseous hydrogen. Sep 2016
Air Liquide,
• Over the recent years, various parts of the world have witnessed significant 1936 km
Air Products,
development in hydrogen infrastructure. The development has been mostly 1140 km
Linde,
witnessed in the emergence of hydrogen pipeline and hydrogen refueling 244 km
stations. Owned by merchant hydrogen producers, these pipelines are located Praxair,
739 km
where large hydrogen users, such as petroleum refineries and chemical plants, Others,
483 km
exist.
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4.2 RESTRAINTS 4.2.1 High Cost of Hydrogen Compression Reducing the Demand from Fuel Station Developers

4.2.1 HIGH COST OF HYDROGEN COMPRESSION REDUCING THE DEMAND FROM FUEL STATION DEVELOPERS 23
• The demand for hydrogen compressors in hydrogen refueling stations is • Diaphragm compressor technology has been proven very effective for
evolving. Mobile hydrogen fuelers, where liquefied or compressed hydrogen hydrogen refueling applications, due to its high throughput, low power
and dispensing equipment are stored onboard a trailer, are also being consumption, and low cooling requirements, when compared to other
developed, to improve the expansion of hydrogen infrastructure. technologies. Electrochemical hydrogen compressor (EHC) technology is
being developed by some companies, to increase reliability and lower the
• For hydrogen to become a mainstream fuel, the economics of the refueling
cost of hydrogen compression.
infrastructure need to be favorable. Hydrogen has to be able to compete
• Currently, the challenges being faced by hydrogen compressor technology
economically with petroleum for auto manufacturers, drivers, and fueling station
include - volatility of raw material prices (stainless steel), initial capital costs,
owners to make the switch. An important aspect of the economics is the energy
and more frequent maintenance intervals from the on/off cycling of the
required to produce, compress and dispense hydrogen fuel.
compressors, due to low station demand. However, with the strong growth in
• Hydrogen compression represents a key technical challenge for the widespread the refueling stations development, the challenges mentioned above is
commercialization of fuel cell electric vehicles and development of hydrogen expected to get sorted during the forecast period.
infrastructure. The Japanese government and the auto industry aim to introduce 160
• It is projected that the currently available hydrogen compressor technology may stations and 40,000 fuel cell vehicles, by March 2020
not be able to meet futuristic infrastructure demands, in a cost-effective Japan is focused on promoting fuel cells, which combine hydrogen and
manner. Conventional compressors account for over half of the refueling oxygen in an electrochemical reaction, thus producing clean electricity to
station’s cost, have poor reliability, and insufficient flow rates. Further, power vehicles or home generators. Hydrogen stations and fuel cell vehicles
compression costs include capital expenditure (50-55%), energy consumption should be promoted in tandem, to lower their costs. In March 2018, Toyota,
(25-30%), and operations and maintenance costs (15-20%). Nissan, and Honda formed a joint venture with major gas and energy firms, to
build 80 new hydrogen stations over the next four years, to add to the roughly
100 such stations already in operation, in Japan.

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4.3.1 Emerging Hydrogen Sources and Production Methods

4.3 OPPORTUNITY
4.3.2 Increased Application Of Hydrogen in the Power (and Heat) Sectors

4.3.1 EMERGING HYDROGEN SOURCES AND PRODUCTION METHODS 25
• Hydrogen sources are diversifying. Nuclear is a zero-carbon source of • Carbon capture and sequestration (CCS) technology can remove CO2
hydrogen production. Renewable feedstocks (wind, solar, biomass, hydro, and emissions from fossil fuels used to produce hydrogen before pre-combustion or
geothermal) are eco-friendly hydrogen sources, the use of which has increased after (post) combustion. As CCS technology matures, its use is anticipated at a
greatly. utility scale. Apart from electrolysis and reforming with CCS, it is expected that
• The use of electrolysis to split water into oxygen and hydrogen is increasing. hydrogen will also be produced from bio-derived liquids and microbial
Electrolysis can occur at low and high temperatures and at scales ranging from conversion.
kilowatt to megawatt in size. Polymer electrolyte membrane [PEM] and alkaline • Research is underway for specific hydrogen compressor technologies serving
technologies are low-temperature technologies. PEM electrolysis is less these emerging hydrogen sources and production methods, and it is expected
proven, more expansive (in terms of CAPEX), compact, and suitable for to create opportunities for companies engaged in the supply and manufacturing
dynamic load balancing of electricity grids with intermittent renewable energy of hydrogen compressors.
when compared to alkaline electrolysis. •Natural Gas Reforming
• Notably, electrolyzers that operate using renewable electricity to generate •Low GHG Reforming
Short-term •Biomass Gasification
hydrogen have no carbon footprint. Alkaline and PEM water electrolyzers are
available in megawatt (MW) scale. In April 2017, a 3 MW PEM electrolyzer •Electrolysis (Wind)
stack was unveiled at Hannover Messe. •Electrolysis (Solar)

Mid-term •Coal Gasification (with CCUS)
• Also, use of small reformers for hydrogen production via gasification of fossil
and biomass feedstocks is also expected to increase. Small-scale electrolyzers •High Temp. Electrolysis
and reformer systems with hydrogen capacities in the range of 50-500 normal •PEC
•STCH
cubic meters per hour (Nm3 /hour) are already commercially available. Long-term
•Photo Biological

4.3.2 INCREASED APPLICATION OF HYDROGEN IN THE POWER (AND HEAT) SECTORS 26
• Environmental-related pressure has driven innovations in the energy system on • In Japan, the ‘one-farm’ cogeneration systems were first deployed in 2009 and
a global scale. There is a profound interest in fostering a cleaner future for the currently number around 200,000 residential units. They produce hydrogen
present and future generations, evidenced by the 148 nations, who approved from the municipal gas line supply. In Germany, the Callux demonstration
the 2015 Paris Climate Accord. project concluded year end 2015, with the installation of 500 fuel cell systems.
• Hydrogen offers a fine solution to this environmental crucible. As a highly • Hydrogen can be converted to electricity with the help of a fuel cell, an
flexible energy carrier, hydrogen can deliver a holistic – clean, integrated, and electrochemical device. Unlike batteries, fuel cells operate continuously with the
multi-sector ̶ approach to energy that will contribute to solving environmental use of hydrogen and oxygen. They are scalable and can be used in very small
and energy related issues. to very large sizes. The only by-products of fuel cells are heat and water.
• Hydrogen can expand supply in the power sector via the use of electricity from • Some of the major types of fuel cells currently available in the market are
renewable sources (renewable electricity) to electrolyze water for storage. polymer electrolyte membrane or proton exchange membrane (PEM), direct
When needed, the stored hydrogen can be re-converted to electricity via fuel methanol fuel cell (DMFC), alkaline fuel cells, phosphoric acid fuel cells
cells or turbines. In 2014, renewable electricity accounted for over 45% of net (PAFC), solid oxide fuel cells (SOFC), and molten carbonate fuel cells (MCFC).
additions to world capacity in the power sector, expanding to 130 GW
• With increasing applications in the power sector, hydrogen production may
[gigawatts] at the fastest annual rate till date.
witness a huge growth in the near future. To serve the increasing demand of
• Also, hydrogen can be used to provide heat. Heating, cooling, and cooking – hydrogen, hydrogen compressors are expected to play a key role and may
are critical applications, worldwide. Space heating continues to dominate create avenues for various market players to supply compressors in these
building energy use in OECD countries, while cooking and water heating are emerging areas. Companies are currently working toward catering the niche
prominent end uses in non-OECD countries. Fuel cells are a modular, scalable markets, like the power and automotive sectors, by developing market-specific
technology that can be used for CHP. Fuel cells produce the highest proportion compressors for in-house production of hydrogen at small and large scales.
of electricity of any CHP technology.

27
5.1 Hydrogen Supply Chain

5. SUPPLY CHAIN ANALYSIS
5.2 Hydrogen Compressor Supply Chain

5.1 HYDROGEN SUPPLY CHAIN 28
PRODUCTION DISTRIBUTION AND

RAW MATERIALS END USERS
TECHNOLOGIES STORAGE FACILITIES
NATURAL GAS STEAM METHANE REFORMING TANKER TRUCK
HYDROGEN REFUELLING
STATION
COAL COAL GASIFICATION RAILWAY TANKER
AMMONIA MANUFACTURING
BIOMASS BIOMASS GASIFICATION PIPELINE
STORAGE FACILITIES REFINERY AND

ELECTRICITY ELECTROLYSIS PETROCHEMICAL PLANT

5.2 HYDROGEN COMPRESSOR SUPPLY CHAIN 29
CORE SUPPLY RAW MATERIALS AND HYDROGEN COMPRESSOR

END USERS
CHAIN COMPONENT SUPPLIERS MANUFACTURERS
ELEMENTS OF 1. REFINERY OPERATORS
SUPPLY CHAIN 2. FERTILIZER COMPANIES

1. SEAL
AND 2. VALVE 3. AMMONIA MANUFACTURERS
COMPANIES 3. COMPRESSOR BASE
4. PETROCHEMICAL COMPANIES
INVOLVED 4. INJECTOR PUMP
5. FUEL CELL MANUFACTURERS
5. FITTINGS
6. TUBINGS 6. TANKER AND STORAGE
7. SYSTEM COMPONENTS PROVIDERS
RESEARCH AND DEVELOPMENT

ESSENTIAL
PARTNERS REGIONAL AND LOCAL DISTRIBUTORS

30
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6. PORTER'S FIVE FORCES ANALYSIS 6.3 Threat of New Entrants
6.4 Threat of Substitute Products
6.5 Intensity of Competitive Rivalry

6.1 BARGAINING POWER OF SUPPLIERS 31
Bargaining
Power of
• The cost of raw materials, such as steel, aluminum, and iron, has
Consumers
increased in the past few years, thus, reducing revenues of raw
material suppliers. Suppliers are gradually pressurizing
manufacturers to increase prices so as to stabilize their profit
Bargaining
margins.
Threat of New Power of
Entrants Supplier • Suppliers have to maintain strong distribution networks and adhere to
MODERATE delivery schedules, to avoid losing their supply contracts to other

PORTER FIVE
companies.
FORCES ANALYSIS
• Raw materials from different suppliers have limited difference, as
they maintain a minimum quality of the product. As a result, the
switching cost is low for manufacturers.
Competitive • Therefore, the bargaining power of suppliers is assessed to be

Threat of
Rivalry among MODERATE.
Substitute
Existing
Products
Competitors

6.2 BARGAINING POWER OF CONSUMERS 32
Bargaining
Power of
Consumers
MODERATELY • Hydrogen compressors find applications in various industries, such
HIGH as chemicals, refineries, petrochemicals, etc. The market includes

domestic and international companies.
Bargaining • In addition, several hydrogen compressor suppliers with well-

Threat of New
Power of established distribution networks already exist in the market studied.
Entrants
Supplier
• The cost of switching between the suppliers is less in the market
PORTER FIVE
studied. In most cases, end-user companies enter long-term
FORCES ANALYSIS agreements with suppliers. The aftermarket revenue (which includes
maintenance) contributes significantly to the overall revenue. This
factor increases the bargaining power of customers.
• Therefore, the bargaining power of consumers is assessed to be

Competitive
Threat of MODERATELY HIGH.
Rivalry among
Substitute
Existing
Products
Competitors

6.3 THREAT OF NEW ENTRANTS 33
• The capital required for setting up a hydrogen compressor business is high,

in addition to the requirements of a significant investment for research and
Bargaining
development.
Power of
Consumers • Several companies have well-established distribution channels and service
centers, globally. Clients prefer long-term contracts with existing players in
the market studied, which restricts opportunities for new players.
Threat of New Bargaining • Large companies, such as Atlas Copco, have started focusing on data-
Entrants Power of driven services. The company is connected to more than 85,000 customers,
LOW Supplier worldwide, through its SmartLink data monitoring system for compressors. It
PORTER FIVE allows companies to continuously monitor the status and undertake
FORCES ANALYSIS predictive maintenance, for ensuring optimum performance. The provision
of such services has helped the company to develop a healthy relationship
with clients, thus, acting as a threat to new entrants into the market studied.
• The high requirement of skilled labor force for manufacturing hydrogen

Competitive compressor on a large scale hinders the prospects of new entrants in the
Threat of
Rivalry among market studied.
Substitute
Existing
Products • Therefore, the threat of new entrants is assessed to be LOW.
Competitors

6.4 THREAT OF SUBSTITUTE PRODUCTS 34
Bargaining
Power of
Consumers • There are no direct substitutes for hydrogen compressors in end-user
industries. However, for transportation, other methods in addition to
compression exist, as liquid form is used during high volume
Bargaining transportation, in the absence of pipeline. Liquefaction consumes

Threat of New
Power of 30% of the energy content of hydrogen and is expensive.
Entrants
Supplier • Research and development activities are underway to improve
PORTER FIVE
liquefaction technology and economies of scale, which are expected
FORCES ANALYSIS to reduce the energy required and cost. Currently, transportation of
hydrogen in liquid form is less expensive than the gaseous form.
• Therefore, the threat of substitute products is assessed to be LOW.
Threat of Competitive
Substitute Rivalry among
Products Existing
LOW Competitors

6.5 INTENSITY OF COMPETITIVE RIVALRY 35
Bargaining
Power of
Consumers
• There are numerous companies active in the hydrogen compressors
market and most of them are equally balanced in terms of market share.
Bargaining Additionally, the product differentiation among different companies is
Power of relatively less. As a result, there is high competitive rivalry among existing
Threat of New
Supplier industry players.
Entrants
PORTER FIVE • Several companies have developed a strong relationship with the
consumers and are entering long-term agreements, for compressor supply
FORCES ANALYSIS and maintenance.
• Further, the market has witnessed several merger & acquisition activities,
thereby, intensifying the competition.
Competitive
Rivalry among • Therefore, the competitive rivalry among existing competitors is assessed
Threat of
Existing to be HIGH.
Substitute
Products Competitors
HIGH

36
7.1 By Technology
7.1.1 Single Stage
7.1.2 Multistage
7.2 By Type
7. MARKET SEGMENTATION 7.2.1 Oil-based
7.2.2 Oil-free
7.3 By End-user Industry
7.3.1 Chemical
7.3.2 Oil & Gas
7.3.3 Other End-user Industries

7.1 SEGMENTATION – BY TECHNOLOGY 37
Hydrogen Compressor Market: Size and Demand Forecast in USD billion, by Technology, Global, 2017-2023
1.53
1.24
1.18
1.12
Revenue (in USD billion)
0.41
0.30 0.32 0.33
Single Stage Multistage
Technology
2017 (e) 2018 (f) 2019 (f) 2023 (f)
Source: Mordor Intelligence Analysis

7.1.1 SINGLE STAGE 38
• Single stage compressors are ideal for moving large amounts of gas (primarily
hydrogen), when high inlet pressures are available. They are widely used for Hydrogen Compressor Market: Size and Demand Forecast in
rapidly filling vehicle tanks, moving gas between storage vessels, and emptying USD billion, Single Stage, Global, 2017-2023
high-pressure tube trailers.
0.41
• For heavy-duty industrial applications, single stage hydrogen compressors 0.39
0.37
deliver consistent and reliable service, whereas, for low-pressure and high- 0.35
0.33
volume applications, these compressors offer a compact design, wide ranging 0.32
0.30
flexibility, and long service life.

• Single stage hydrogen compressors are well suited for applications with
relatively low differential pressures, such as transport, rail car, and marine
unloading. These compressors are expected to witness significant growth,
during the forecast period, as they require relatively less maintenance and offer
continuous service in applications, such as refineries, petrochemical plants,
NH3 and methanol services, natural gas processing, coal gasification, and
power stations.
• Single stage hydrogen compressors are designed for high-temperature

Single Stage
applications (above 500° F). They ensure reliable performance and offer
2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
efficiencies up to 90%.
• The compression ratio for single-stage compressors are limited to
approximately 8:1. Source: Mordor Intelligence Analysis

7.1.2 MULTISTAGE 39
• The multistage compressors boost hydrogen from inlet pressures as low as 70

psi to discharge pressures as high as 15,000 psi. Compressing in multiple
USD billion, Multistage, Global, 2017-2023
stages allows cooling to occur between the stages, which lowers the discharge
temperature and saves work in the compression process. Additionally,
intercoolers are used in between each stage, to remove heat and decrease the
1.53
temperature of the gas, so that gas could be compressed to higher pressure, 1.45
1.37
without much rise in temperature.

1.30
1.24
• Multistage compressors are also used to fill storage tanks and cater to a 1.18
1.12
diverse range of hydrocarbon markets, such as oil & gas production and
processing, petroleum refining, petrochemical processing, cryogenic
refrigeration (LNG), and other industrial processes.
• Multistage compressors are mostly preferred over single stage compressors,

due to the following reasons:
• They improve the efficiency of compressors.
• More stages are needed to increase the required final pressure.
• Oil-free and lubricated reciprocating compressors realize significant Multistage

savings from multiple stages of compression. 2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
• Avoid the danger of an explosion in the compressor cylinder.
• Due to the reduced temperature, they offer better lubrication for cylinder Source: Mordor Intelligence Analysis
and compressor piston.
7.2 SEGMENTATION – BY TYPE 40
Hydrogen Compressor Market: Size and Demand Forecast in USD billion, by Type, Global, 2017-2023
1.35
1.10
1.05
1.00
0.58
0.45 0.47
0.42
Oil Based Oil-Free
Type
2017 (e) 2018 (f) 2019 (f) 2023 (f)

7.2.1 OIL-BASED 41
• Oil-based lubricated compressors cost less, provide a longer service life, Hydrogen Compressor Market: Size and Demand Forecast in
when compared to oil-free compressors, and are considered ideal for USD billion, Oil-based, Global, 2017-2023
commercial and industrial applications until and unless in industries, where
consequences of oil contamination are considered very high and having an
1.35
1.28
oil-free compressor is a must. 1.16 1.22
1.10

1.00 1.05
• Oil-based compressors are considered more efficient than the oil-free type
compressors, as oil acts as a cooling medium, taking out approximately 80%
of the heat produced by the compressor during the compression process, and
are considered more suitable for industrial usage with requirements of high
compression ratio.
• In terms of capital outlay, lubricated oil-based compressors are often 2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
considered less expensive than oil-free compressors, with price difference

often varying in the range of 30-40%. It may even reach 50%, depending
upon factors, such as capacity and industry-specific requirements, among • Continuous contamination of oil may result in severe consequences, such as
others, and in turn, resulting in the increased demand for oil-based hydrogen spoiled or unsafe products, production downtime, and legal issues.
compressors. • Additionally, there is a persistent threat of premature wear of the components of
• Although oil-based compressors are more affordable than oil-free; these type the hydrogen compressor due to insufficient lubrication, which may add to the
of compressors require continuous maintenance and greater attention in maintenance cost of oil-based hydrogen compressors, in turn, limiting their
replacing filters and other components that are used to eliminate the risk of oil demand.
leakage.

7.2.2 OIL-FREE 42
• Oil-free compressors are designed to operate without oil in the compression Hydrogen Compressor Market: Size and Demand Forecast in
chamber. These compressors are often considered ideal for manufacturing USD billion, Oil-free, Global, 2017-2023
sensitive products, such as semiconductors, which require high-purity 0.58

0.55
0.52
hydrogen with negligible oil contamination. 0.47 0.50

0.42 0.45
• Additionally, compressed hydrogen requires extensive purification to eliminate
the slightest chance of oil contamination, as it may degrade the performance
of fuel cells (fuel cell vehicles) receiving the hydrogen. As oil-based hydrogen
compressors often pose the risk of oil contamination, the focus has shifted
toward oil-free hydrogen compressors. Therefore, with the increasing
deployment of hydrogen refueling stations across the world, the demand for 2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
oil-free hydrogen compressors is expected to increase.
• On the flip slide, oil-free compressors also use oil for the lubrication of moving parts and for cooling of the machine. Lubricated parts are separated from the
compression chamber by sealing systems. Depending on the complexity of the seal and the harshness of its operating environment, these type of compressors can
be far more susceptible to failure. A seal failure allows oil to enter the hydrogen gas stream that creates substantial waste, thereby, making downtime a very costly
affair. Therefore, oil-free compressors, like lubricated compressors, must have downstream filtration to avoid the dissemination of pollutants in the compressed
hydrogen.
• Owing to the low reliability of compressors, hydrogen producers often install duplicate units to maintain on-line times of 98-99%, which substantially adds to system
costs. Many companies and organizations are actively participating in research and development activities, in order to increase the efficiency and reliability of these
compressors.

7.3 SEGMENTATION – BY END-USER INDUSTRY 43
Hydrogen Compressor Market: Size and Demand Forecast in USD billion, by End-user Industry, Global, 2017-2023
1.10
0.93
0.90
0.86
0.52
0.44 0.45
0.42
0.31
0.16 0.18
0.14
Chemicals Oil & Gas Others
End-user Industry
2017 (e) 2018 (f) 2019 (f) 2023 (f)

7.3.1 CHEMICAL INDUSTRY 44
• The chemical industry uses hydrogen in its main processes, mainly to

synthesize ammonia and methanol. This hydrogen is typically supplied via on- USD billion, Chemical Industry, Global, 2017-2023
site steam methane reforming (SMR) of natural gas or via pipeline. Ammonia is
1.06 1.10
the highest, in terms of consumption, in the chemical sector, representing more 0.97 1.01

0.90 0.93
0.86
than 70% of the total demand. Hydrogen is added to nitrogen to produce
ammonia, which is then used to produce fertilizers and explosives, among
other products.
• To produce ammonia from nitrogen and hydrogen, ammonia synthesis is used.

The ammonia produced can then be used as a fertilizer, or can be further
2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
processed into urea or nitric acid. A mixture of hydrogen and nitrogen usually
originates from a steam reformer. A hydrogen compressor is required to pump
• The global ammonia capacity is expected to increase by 8% from 2017, to reach
recovered hydrogen gas directly to synthesis converter and then compressed
250 million metric ton by 2023. Large increases in capacity are expected in
in two stages into the synthesis pressure of 150-300 bar (2200-4400 psi).
eastern Europe, central Asia, North America, and Africa. In additionally, the global
• In the fertilizer and chemicals industries, where hydrogen and nitrogen react to methanol capacity is expected to reach approximately 100 million metric ton by
form ammonia or to convert methane and water to methanol, the demand for 2023, driven by the increasing methanol-to-olefins (MTO) capacity, which is a
hydrogen is likely to increase continuously, in line with the overall demand for major consumer of methanol.
ammonia and methanol, projected in a two-degree scenario.
• As industrial production increases worldwide, the demand for feedstock is likely to
• In 2017, the global ammonia production dropped by 1.2%, to 174 million metric increase. Therefore, the increasing demand for fertilizer and chemical industries
ton. More than 20 new large ammonia units are expected to come on stream is expected to drive the installation of additional capacity, which further increases
by the end of 2018, thus, increasing the global ammonia capacity to 188 million the demand for hydrogen compressors, during the forecast period.
metric ton in 2018. It was valued at 179 million metric ton, in 2016
7.3.2 OIL & GAS INDUSTRY 45
• In the oil & gas industry, hydrogen compressors are majorly used in refineries for
various processes. Refineries use hydrogen to produce clean burning gasoline
USD billion, Oil & Gas Industry, Global, 2017-2023
and low sulfur diesel fuel, thus reducing air pollution. Hydrogen is added to crude 0.50 0.52
0.47 0.49
oil and oxygen, to produce refined petroleum products (e.g., diesel, LPG, and 0.44 0.45
0.42

gasoline).
• In refineries, hydrogen is used in the hydrogenation processes, to crack heavier

crudes and increase the hydrogen ratio in molecules, thereby, producing lighter
crudes. These processes are called hydro-cracking and hydrotreating
desulphurization units.
2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
• The growth of the market studied is expected to be driven by the demand for
cleaner fuels, government regulations for the desulfurization of petroleum Annual Refining Capacity Addition and Investment in
products, and the general decline in crude oil quality. As the quality of crude Projects, Global, 2013-2022
decreases, the volume of hydrogen required for the refinement process increases, 2.5 90
80
to maintain the quality of end products. 2 70
in USD billion
60
In mb/d
• Driven by the increasing industrialization, urbanization, increasing per capita 1.5
50
40
income, and growing population in developing countries, by 2023, demand for oil 1
30
is expected to reach 104.7 mb/d, up 6.9 mb/d, from 2017. The pace and refinery 0.5 20
10
investments continue to follow the increase in the demand of oil. Consequently, 0 0
major investments are expected in developing countries. Global refining capacity 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Production Cost(RHS)
additions, till 2023, are forecast to amount to 7.7 mb/d, which is expected to
increase the demand for hydrogen compressors, during the forecast period.
7.3.3 OTHER END-USER INDUSTRIES 46
• Other than the application of hydrogen compressors within the oil refineries and
the chemical industry, hydrogen compressors have various other applications. USD billion, Other End-user Industries, Global, 2017-2023
In the metallurgy industry, hydrogen is used to reduce metal oxides and 0.31
0.28
prevent oxidation, when heat-treating specific metals and alloys. Hydrogen is 0.24

0.21
also used as a fuel, in alternative energy vehicles. Several other industrial 0.18
0.16
processes use hydrogen, although they together account for a minimal market 0.14
share, which includes food, glass, and electronics, among others.
• Hydrogen refueling station (HRS) is one of the rapidly growing applications of

hydrogen compressors, during the recent years. The global count of HRS in
2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)
operation increased from 115 in 2015 to 285 in 2016 and 327 in 2017.
• Of the 327 stations, worldwide, 139 stations are currently operational in Fuel Cells Shipped for FCEVs in MW and Hydrogen Fueling
Europe, 118 in Asia-Pacific, 68 in North America, one in South America, and Stations Installed Per Year in number, Global, 2013-2017
one in Australia. The global number of early market stations open to the public, 800 100
700
as of 2017, exceeds 225. The number of stations is expected to reach 1,306 by 80
600
2022 and 4,808 by 2032. 500 60
400
• The number of hydrogen refueling stations open to the public or fleets 300 40
worldwide, is increasing. The number of planned HRS over the short term and 200
20
100
till 2030, is also rising. Therefore, the rapid growth in HRS is expected to drive
0 0
the demand for hydrogen compressors, during the forecast period. 2013 2014 2015 2016 2017
MW of fuel cells shipped Number of hydrogen fueling stations

7.3.3 OTHER END-USER INDUSTRIES 47
Hydrogen Compressor Market: Size and Demand Forecast in USD billion, Other End-User Industries, Global, 2017-2023
0.222
0.189
0.158
0.131
0.106
0.085
0.065
0.043 0.044 0.044 0.045 0.046 0.047 0.048 0.038 0.040 0.042
0.031 0.032 0.034 0.035
Hydrogen Filling Stations Semiconductor Facilities (Electronics) Others
Other End-user Industries
2017 (e) 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) 2023 (f)

48
8.1 North America
8.2 Asia-Pacific
8. MARKET ANALYSIS - BY GEOGRAPHY 8.3 Europe
8.4 Middle East & Africa
8.5 South America

8. MARKET ANALYSIS - BY GEOGRAPHY 49
Hydrogen Compressor Market: Market Size and Demand Forecast in USD million, by Geography, Global, 2016-2023
0.80
0.70 0.67
0.60
0.54
0.51
0.50 0.48
0.47
0.40 0.37 0.38

0.36
0.35
0.30 0.32
0.28 0.29
0.30
0.24 0.26
0.23
0.20
0.11
0.08 0.09 0.09
0.10
0.00
North America Asia-Pacific Europe Middle East & Africa South America
Geography
2017 (e) 2018 (f) 2019 (f) 2023 (f)

50
8.1.1 United States
8.1 NORTH AMERICA 8.1.2 Canada
8.1.3 Mexico

8.1.1 UNITED STATES 51
Refinery Hydrogen Production in billion ft3 per day,

• Apart from refining and petrochemical industries, gas compression
United States, 2010-2017
equipment are found in commercial installation of hydrogen refueling 3.22
in billion ft3 per day

stations. In mobile hydrogen fuelers of the united states, compressed 3.09 3.10
3.08
3.05 3.04
hydrogen and dispensing equipment are stored onboard a trailer. These are 3.00
2.99
being developed to support the expansion of hydrogen infrastructure in the
country, with California taking the lead.
2010 2011 2012 2013 2014 2015 2016 2017

• Moreover, efforts are underway to expand hydrogen fueling locations in Source: BP Stats
Hawaii and across the East coast. By the end of 2017, over 60 retail stations
• Research institutions, such as Giner Inc., Greenway Energy LLC, and Sandia
were available nationwide, with most of them concentrated in California.
National Laboratories, have come up with a cost-effective method for
• In July 2016, the US Department of Energy (DOE) announced plans to invest compressing hydrogen. This is likely to overcome the reliability issues of
USD 14 million for the advancement of hydrogen fuel technologies, which mechanical compression and the efficiency challenges of solid-state
includes advanced high-temperature water splitting, advanced compression, compression technologies.
and thermal insulation technologies.

• Oil refining capacity witnessed a decline in the country, a negative 0.3% in
• The increasing support from the government and the efforts for the 2017. However, the refining capacity is expected to witness growth during the
development of hydrogen refueling infrastructure is expected to create a forecast period, in order to meet the rising needs for energy and chemical
huge market demand for hydrogen compressors in the United States, over products. The market for hydrogen compressors in refineries is expected to
the forecast period. grow over the forecast period, with a substantial increase in hydrogen demand
in the United States. This is further likely to double in the coming years.

8.1.1 UNITED STATES 52
Hydrogen Production Capacity of Operable Petroleum Refineries (%), By Recent Trends and Developments in the United States
States, United States, January 2018
Washington Feb 2017:

4.51%
Minnesota
Kansas Kobe Steel, Ltd announced that it had started
6.55%
3.95%
Illinois Oklahoma marketing of HyAC mini-A, an all-in-one,
Montana Louisiana
6.65% 2.37%
4.87% 3.89% compact compressor package for stationary
Mississippi Vyoming Arkansas
8.00% 2.04% 0.43% Alaska hydrogen refueling stations designed for use in
Alabama 0.43% Pennsylvania
1.32% 0.33% the United States.
Delaware
1.32%
West
New
Hawaii Virginia
New Mexico
0.69% 0.10%
Jersey 1.25% Jun 2017:
1.02% North
Texas Tennessee Dakota
Other Colorado
13.43% 0.99% 0.07% The record for highest efficiency in solar
3.75% 0.72%
California hydrogen production via a photo electrochemical
35.07%
(PEC) water-splitting process was recaptured by
scientists at the US Department of Energy’s
(DOE) National Renewable Energy Laboratory
(NREL). The new solar-to-hydrogen (STH)
efficiency record is 16.2%.

8.1.2 CANADA 53
• The petrochemical industry in the country is dominated by the processing • Also, fuel cells have higher efficiency at all power levels than conventional
of ethane into ethylene and its downstream derivatives. technologies, like diesel generators. However, the disadvantage associated
with hydrogen as a fuel is the higher capital cost than diesel engines. On the
• Alberta has one of the largest petrochemical and refining industries
other hand, hydrogen as a fuel has a lower levelized energy cost. In
in the country and has four ethane-cracking plants, including two of
comparison to diesel, annual savings of over USD 900,000 is expected from
the world’s largest, with a combined annual capacity to produce
renewable hydrogen storage system.
approximately nine billion pounds of ethylene.
• In June 2018, Shell and Hydrogen Technology & Energy Corporation (HTEC)
• During 2012-2017, companies have invested around USD 1 billion in the
launched Canada’s first hydrogen refueling station for fuel cell electric vehicles.
petrochemical projects in Canada, out of which majority was utilized for the
expansion of existing sites. Moreover, Canada's petrochemical industry is • British Colombia (BC) is one of the leaders in developing fuel cell technology in
estimated to have around USD 12 billion worth of upcoming projects. Canada. However, as of September 2017, there were only eight hydrogen fuel
cell (HFC) cars on the road (Compared to 2,000 in California and 5,000 in
• Due to stricter environmental legislation and trends in plant expansion,
Japan). Canada continues to invest heavily in hydrogen and fuel cell R&D and
hydrogen applications in refineries are expected to increase in the country
is among the largest fuel-cell technology hub.
over coming years. The need to process a wide range of crude oil and
heavy petroleum by-products are also expected to witness an increase in • The initial capital costs required for installation and low round-trip efficiency of
the country, over the coming years. the system are some of the major drawbacks that limits investment in the
hydrogen fuel cell technology. The increasing efforts made in the development
• Hydrogen energy storage and using renewable energy sources with the
of hydrogen and fuel cells is expected to improve the hydrogen fuel cell
fuel cell system for power production enable remote communities to meet
infrastructure in the country over the next few years, thereby, providing
all or a significant proportion of their power demand in an economical
immense opportunities for the growth of the hydrogen compressor market.
manner.

8.1.3 MEXICO 54
• The Mexican petrochemical sector has not witnessed seldom development in the • In July 2017, a Mexican startup company expressed its interest in developing
past few years, as its growth has been hindered by lack of raw materials. hydrogen cars that include infrastructure of hydrogen stations, as nations and
companies are focusing on bring pollution-free vehicles.
• However, liberalization of the Mexican energy sector is expected to attract
investors, which can lead to new projects and expansion of existing • Additionally, in January 2017, companies, such as Shell, Toyota, Total
operations. The growth in the petrochemical industry is expected to drive SA, Liquide SA, and Linde AG, agreed to invest around USD 10.7 billion
the demand for hydrogen compressors in the country during the forecast in hydrogen-related products over the next five years. Also, Shell has
period. been investing significantly into hydrogen fueling stations, particularly in
North America and Europe.
• In September 2017, Air Liquide signed an agreement with Pemex
Transformación Industrial to supply hydrogen to PEMEX’s refinery located at • Mexico’s fertilizer production has witnessed a considerable drop in production
Tula de Allende. from the late 1990s of around 4 million metric ton annually to 2.27 million metric
ton per year.
• Under the long-term contract, Air Liquide is also liable to upgrade and
operate the customer’s existing hydrogen production unit (Steam Methane • Although the Mexican government attempts to boost production, the
Reformer-SMR) in order to supply 90,000 Nm3 per hour of hydrogen to impact of the exchange rate has had a negative impact on the cost of
the PEMEX refinery. The plant expansion is expected to create demand imported materials, which has, in turn led to the continued increase of
for hydrogen compressors for the PEMEX refinery in Mexico. prices in Mexican fertilizers. The use of these fertilizers has experienced
significant growth over the past decade and is expected to continue
• In May 2017, efforts of PEMEX to attract about USD 5 billion in capital to help
growing in the coming years. As local manufacturing is not sufficient to
modernize its two largest refineries so far have proved futile, and the
meet the national demand estimated at 4.68 million metric ton per year,
liberalization of the energy sector has also not been profitable for the refinery
net imports of approximately 2.4 million metric ton per year is likely to
market so far for Mexico.
continue in the near future.

55
8.2.1 China
8.2.2 India
8.2.3 Japan
8.2 ASIA-PACIFIC 8.2.4 Australia
8.2.5 South Korea
8.2.6 Rest of Asia-Pacific

8.2.1 CHINA 56
• The Chinese petrochemical industry is likely to account for about 50% of the total growth expected in the global petrochemical industry by 2025. The country aims to
attain self-sufficiency in petrochemical production.
• Hydrogen centrifugal compressors are used in ethylene plants for cracked-gas compression and refrigeration services. With such upcoming projects, the demand for
the application of hydrogen compressors in ethylene plants is projected to increase in the country.
• Owing to the production shortage of ethylene and benzene, the country has been investing to increase its production capacity of ethylene and benzene.
• Some of the ethylene capacity addition that the country is expected to witness during the forecast period includes:
Ethylene Capacity (thousand metric

Company Start-up
ton per year)
Wanhua Petrochemical 1000 2019
Maozhan Complex project 800 2020
ZheJlang PC 1400 After 2020
Shenghong PC 1100 After 2020
Sinochem Quanzhou PC 1000 2021
Gulel PC 1000 After 2020
Hengll PC 1500 After 2020
China North Industries & Saudi Aramco 1000 After 2020
SP Chemicals 600 After 2020
ZRCC 1200 After 2020
Yangtze PC 800 After 2020

8.2.1 CHINA 57
• Hydrogen is extensively used in the production of ammonia, further creating the demand for hydrogen compressors in the industry. Currently, ammonia and urea
production in the country has been facing feedstock shortage, due to which the industry witnessed a halt in production during December 2017. The production is
likely to remain low for the next year.
• The country’s refining industry attracted investments to increase its refining capacity during 2017. In the past few months, China added about 460,000 b/d of new
refining capacity. In October 2017, a project of China National Offshore Oil Corporation (CNOOC) in Huizhou City, almost doubled its crude refining capacity to 22
million metric ton per year.
• However, the country has been currently cutting down its refining capacity by shutting down unauthorized refining capacity. China’s state planner has launched a
fresh crackdown on oil refiners that expand capacity without official approval. National Development & Reform Commission aims to close refineries with less than 2
million metric ton per year (40,000 barrels per day) of capacity, in case of violation of any rules and regulation. Besides this, China issued new tax rules in January
2018, as its state-owned companies claim that privately-owned refiners and blenders have undercut their prices for tax avoidance. Hence, all such concerns in the
refining industry in China are likely to negatively impact the attractiveness of the market for new private investors for investment in the refining business. No new
refinery projects are likely to come up in China in the near future, reducing demand for the hydrogen compressor market for application in the refining industry.
• Wuhan in China's Hubei Province is planning to build a hydrogen city, for which the Hubei's capital has been actively developing the hydrogen energy industry. The
advanced research and development of core technology for hydrogen production, storage and transport, and improvement of hydrogen infrastructure has been
initiated in the country. Additionally, the hydrogen energy industrial park is expected to be built in collaboration with more than 100 fuel cell automakers and related
enterprises in the coming years. The plan includes the construction of 20 hydrogen fueling stations during 2018 to 2020 to support 3,000 hydrogen fuel cell vehicles
that are currently on road. Furthermore, Wuhan's annual production value of hydrogen fuel cells is expected to exceed CNY 100 billion (around USD 15.63 billion).

8.2.2 INDIA 58
• The Indian fertilizer industry witnessed remarkable growth in the past five decades. As of 2017, it is the second-largest producer of nitrogenous fertilizers and third-
largest in phosphatic fertilizers, globally.
• The country has also been witnessing strong growth in the fertilizer industry. In order to increase the fertilizer production, Hindustan Urvarak and Rasayan Ltd
(HURL) has announced that it will award three gas-based fertilizer plants, which it plans to commission in 2020. The project includes the installation of an ammonia
plant of 2,200 metric ton per day and urea plant of 3,850 metric ton per day at each of these units at Gorakhpur, Sindri, and Barauni, which involves an estimated
cost of INR 60 billion for each unit. Such investments and projects coming in are expected to create demand for the hydrogen compressor market in the coming
years, owing to its application in the production of ammonia and other fertilizers.
• Coal India Ltd (CIL), seeing the opportunities, plans to diversify its coal and chemical businesses. In April 2017, it came out with its plan to set up a coal-based
methanol plant in West Bengal. The government has further been studying the scope of domestic coal gas as feedstock to produce urea and other chemicals, as it
may help the country to reduce imports by USD 10 billion in the next five years, along with reducing carbon emission.
• The oil refiners are planning to provide a USD 35 billion push to the petrochemical industry, in order to cater to the expected surge in demand for goods, ranging
from plastics to paints and adhesives. The petrochemical demand is expected to reach 40 million metric ton per annum by 2020 from 30 million metric ton per
annum, currently.
• As of July 2017, the domestic refining capacity was around 233 million metric ton. The Indian petrochemical industry has been focusing majorly on capacity addition,
not only to meet its domestic demand, but also to expand its exports. Such huge investments are expected to lead to new projects for capacity addition, which is
likely to create a market for hydrogen compressors.
• In this regard, the country’s three public sector oil companies, Bharat Petroleum Corp. Ltd (BPCL), Indian Oil Corp. Ltd (IOC), and Hindustan Petroleum Corp. Ltd
(HPCL) signed an agreement in July 2017 to build one of the world’s largest integrated refinery-cum-petrochemicals complexes in Ratnagiri district of Maharashtra.
The planned refinery is expected to attract an investment of about USD 40 million and hold a production capacity of 60 million metric ton per annum (MMTPA). The
plant is likely to be commissioned by 2022.
8.2.2 INDIA 59
• Besides this, Kuwait's Al Arfaj Group recently planned to build a 600,000 barrels per day oil refinery and a 10 million metric ton a year liquefied natural gas (LNG)
terminal in the Indian coastal state of Andhra Pradesh. This is projected to create demand for the hydrogen compressor market, for naphtha cracking, hydrotreating,
hydroprocessing, etc.
• With such investments rising in the petrochemical and refining industries, the demand for hydrogen compressors for application in the petrochemical plants and
refineries is expected to increase during the forecast period,.
• The Indian chemical industry stands as the third-largest producer in Asia, in terms of value and production volume. The chemical industry in the country has been
witnessing a strong growth, fuelled by increasing domestic investments and FDIs into the sector. In the second quarter of 2017, total FDI in chemicals (excluding
fertilizers) stood at USD 679 million. The government expects the chemical industry to reach USD 300 billion by 2025, recording about 8% to 10% growth during the
period.
• Besides this, India is likely to witness hydrogen as an economically viable energy resource. In January 2017, Tata Motors launched India's first hydrogen fuel cell
bus at its Pune facility. Such developments in the automotive industry, in the long run, are expected to create new opportunities for the hydrogen compressor
market.
• Overall, the market for hydrogen compressor is expected to witness strong growth in India, owing to attractive investment opportunities prevailing in the FCEVs,
petrochemical, fertilizers, and refining industries

8.2.3 JAPAN 60
• One of the major drivers of the hydrogen compressor market is the innovation and technological advancement in the automotive industry, with the development of
hydrogen fuel cell vehicles, and Japan’s aim to build hydrogen fuel stations for re-charging the vehicles. In Japan, 11 domestic firms, including automakers and
energy firms, have made a consortium to build 80 fuelling stations for hydrogen fuel cell vehicles by 2022, in order to create a market for the next-gen fuel cell
vehicle. Currently, Japan has 90 public stations, with more than 40 being operated by JXTG Nippon Oil, and another 10 in the planning or construction stage. This is
expected to drive the demand for the hydrogen compressor market for application in hydrogen fuel stations, during the forecast period.
• Increasing global concerns related to CO2 emissions and scarce energy resources in the country has led Japan to take initiatives for developing eco-friendly energy
sources. The country plans to replace fossil fuel and nuclear power as a source of energy, through hydrogen-based technological innovation. Japan plans to develop
low-carbon, hydrogen-based society, for which it is likely to witness new investments on developing production, storage, and transportation facilities for hydrogen,
further creating a market potential for the hydrogen compressor market in the coming years.
• In the refining industry, the country aims to improve its global position by revamping 22 oil refineries with new standards, in order to improve the production of high-
margin products such as naphtha. The country further plans to set new production quotas for oil wholesalers. It also plans to provide capital fund and support
partnerships in the market to meet the new standards. These production standards are expected to attract hundreds of millions of dollars in specialized equipment,
including hydrogen compressors. Additionally, the ministry has reserved USD 182 million for the next fiscal year to attain the production quotas and for meeting new
standards.
• Besides this, the ministry of Japan is expected to subsidize capital spending and support partnerships of various companies in making hydrogen fuel cell vehicles
and improving refinery standards. Overall, the market for hydrogen compressor in Japan is expected to witness a major demand for petrochemicals and the
hydrogen fuel cell vehicle industry.
• The expected growth in hydrogen fuel cell vehicle industry in Japan is expected to boost the hydrogen compressor market in the country. Japan has planned the
usage of hydrogen-fuelled cars in Tokyo Olympics of 2020, and the plan is to use fleets of hydrogen-fuelled vehicles for transporting athletes. Moreover, the country
has been promoting the adoption of hydrogen cars, but stringent Japanese regulations have resulted in increasing the cost of a hydrogen filling station.

8.2.4 AUSTRALIA 61
• Hydrogen is widely used as a chemical product in various industries (petrochemical, food, electronics, metallurgical processing, etc.). Additionally, hydrogen is now
emerging as a significant component of a future sustainable energy economy where hydrogen and electricity are foreseen to be complimentary sustainable energy
carriers.
• The country has sufficient coal and natural gas resources, along with solar, wind, and biomass, as sources of energy. As these resources can also be used to
produce hydrogen, the country has been planning to develop hydrogen as a source of low-carbon energy, which is projected to create noticeable demand for
hydrogen compressor for production, storage, and transportation purposes.
• In January 2018, The Australian Capital Territory (ACT) Government bought 20 units of Hyundai Nexo, as part of a taxpayer-funded USD 23 million renewable fuels
test. The vehicle has a driving range of up to 800 km and can be refilled in about five minutes, the same time it takes to top up a petrol tank. The first batch of cars
is due to arrive in late 2018 or early 2019. However, the hydrogen fuel-cell vehicles are yet to reach full market potential in the country, as Australia lacks adequate
hydrogen fueling infrastructure.
• In October 2017, Toyota confirmed its plans to introduce a hydrogen fuel cell vehicle in the Australian market. Toyota's president of advanced research and
development announced that Australia was one of several markets earmarked for eventual sales of the Mirai fuel-cell vehicle, with the first batch expected to be
launched in 2019.
• In November 2017, Commonwealth Scientific and Industrial Research Organization (CSIRO) announced its plan to make Australia a renewable energy exporter and
hydrogen fuel hotspot. It is investing USD 13.5 million into hydrogen fuel research and tailored health solutions. The plan is to make Australia a net exporter of green
energy, liquid hydrogen. Liquid hydrogen would be generated using renewable energy from solar and wind by the process of electrolysis.
• In 2018, the South Australian government announced funding for Australia’s first renewable-hydrogen electrolyzer plant, a 15MW facility. The “green hydrogen” plant
is expected to be built by Hydrogen Utility (H2U), working with Germany’s ThyssenKrupp. Overall, the country’s initiative to move toward low-carbon energy
resource, i.e. hydrogen, and the expected investment in building hydrogen fuel cell stations, are expected to drive the demand for the hydrogen compressor market
over the forecast period.
8.2.5 SOUTH KOREA 62
• South Korea is witnessing a demand for the hydrogen compressor market, owing to the huge investments in the chemical and petrochemical industries, in order to
expand its production capacity of chemicals and petroleum products and derivatives, such as ethylene, and increase exports to other nations.
• In October 2016, South Korea’s largest chemical company, LG Chem Ltd, announced the investment of KRW 287 billion to add ethylene production to its Daesan
naphtha plant by 2019. This is likely to increase the ethylene production by 230,000 metric ton per year. This expansion is expected to increase LG Chem’s total
ethylene capacity to 2.43 million metric ton, combined with the capacity of Yeosu plant. In December 2016, Lotte Chemical Corp. planned to invest USD 215.82
million to increase the ethylene production capacity at its Southwestern Yeosu plant by the end of 2018, which is expected to increase the ethylene production by
200,000 metric ton and propylene production by 100,000 metric ton, per year. In these plants, hydrogen compressor is used for cracked-gas compression and
refrigeration purposes, which is likely to create the demand for hydrogen compressors.
• In December 2017, Hanwha Total Petrochemical planned investment of more than USD 300 million for the expansion of its integrated refining and petrochemicals
facility in Daesan. The investment is intended to increase the polyethylene capacity of the site by more than 50%, to about 1.1 million metric ton per year by the end
of 2019. This project also includes the expansion of the steam cracker and flexibilization project to enable processing of low-cost propane feedstock. This is
expected to create the demand for hydrogen compressors, for application in the cracker facility of the company.
• Currently, no more oil refining facility expansion is likely to happen until 2020. However, in the long run, the country is expected to witness a new oil refining facility
worth KRW 3 trillion, within the next three decades. Due to these investments, the country is expected to witness an increase in demand of the hydrogen compressor
market in the long run, for application in the petrochemical and chemical industries.
• As of April 2017, South Korea had 310 hydrogen fuel cell cars in circulation. The government has announced its plans to build 310 hydrogen fuel stations and supply
15,000 hydrogen vehicles by 2022. These investments are expected to drive the demand for hydrogen compressors in hydrogen fuel stations, as well as for
hydrogen transportation during the forecast period.

8.2.6 REST OF ASIA-PACIFIC 63
• In the Rest of Asia-Pacific, Indonesia, Malaysia, and Vietnam are expected to be attractive markets for hydrogen compressors, owing to increasing investments in
the petrochemical and refinery business in these countries.
• In 2017, Aramco signed a USD 7 billion deal, in the RAPID (Refinery and Petrochemical Integrated Development) joint venture with Petronas in Pengerang, southern
Malaysia. The deal is expected to impact the hydrogen compressor market in Malaysia positively.
• Additionally, in Malaysia, the national oil and gas company, Petroliam Nasional Berhad (PETRONAS), is developing USD 27 billion Pengerang Integrated Complex
(PIC) in Johor, Malaysia Refinery and Petrochemical Integrated Development (RAPID) project with a 300,000 barrels-per-day (BPD) refinery, and a petrochemical
complex with a combined 3.609 million metric ton-per-year production capacity.
• In June 2018, SIAM Cement Group (SCG) invested THB 173 billion in an integrated petrochemical plant in Vietnam, which is expected to begin construction in 2019
and start production in 2023. This development is expected to positively impact the demand for hydrogen compressor in Vietnam.
• In 2017, PT Chandra Asri Petrochemical Tbk (CAP), a subsidiary of PT Barito Pacific Tbk, Jakarta, awarded a contract to CB&I, Houston, for the supply of materials
for revamp of existing furnaces at the naphtha cracker of its 860,000-tonne/year ethylene plant at Ciwandan, Cilegon, in Indonesia’s Banten province. The revamp is
expected to expand the ethylene production capacity at the site to 900,000-tonne/year.
• All such growth in the Rest of Asia-Pacific region is expected to create market for hydrogen compressors, for use in naphtha crackers, hydroprocessing,
hydrotreating, and other processes in the refining and petrochemical industries.
• Besides this, the region is likely to witness a demand for hydrogen compressors with hydrogen fuel cell vehicles coming into trend in the long run.
• Additionally, the demand for ammonia for fertilizers has been increasing in the region, which is likely to attract investments into the sector in the coming year, thus
creating a market for hydrogen compressors.

8.2.6 REST OF ASIA-PACIFIC 64
Refining Capacity in thousand barrels per day, by Country, Asia-Pacific, 2013-2017
14,513.00
14,534
14,306
14,177
13594
In thousand barrels per day
4,972.00
4,620
4,319
4,307
4319
3,343.00
3,246.00
4123
3,749
3,721
3,600
3,234
3,110
3,110
2878
1,111.00
1,155
1,155
1,155
1152
625.00
454.00
167.00
662
612
612
612
612
536
452
443
163
159
159
159
China India Japan Australia South Korea Indonesia Malaysia Vietnam
2013 2014 2015 2016 2017 Source: BP

65
8.3.1 United Kingdom
8.3.2 Germany
8.3.3 France
8.3 EUROPE 8.3.4 Italy
8.3.5 Spain
8.3.6 Russia
8.3.7 Rest of Europe

8.3.1 UNITED KINGDOM 66
• The United Kingdom is highly dependent on its refining output to meet its energy
Refinery Capacity and Throughput in thousand barrel per day,
demands. But the refining industry in the country faces a number of challenges.
United Kingdom, 2011-2017
in thousand barrels per day

• Most of the refineries in the United Kingdom were built during the 1970s. These 1787
1526 1498
1433 1348
refineries were designed mainly to produce petrol and fuel oil for electricity. 1337 1337
1227 1,227
1197 1125 1118 1069 1,064
Since 1990, the government started encouraging the use of diesel, which
resulted in the decline in petrol demand. With demand declining, many refineries
in the country have closed down in past two decades.
• As of 2017, the refining output in the country was not in line with the market 2011 2012 2013 2014 2015 2016 2017
demand. The domestic refineries in the country produce a high quantity of petrol Refining Capacity Refining Throughput
Source: BP Stats
and fuel oil. With expected tighter regulations on the fuel and environmental
regulation, the refineries are expected to further struggle in producing the fuel • The United Kingdom is investing heavily in building distribution infrastructure for
that meets the regulatory requirements. As a result, the UK refining industry is hydrogen fuel. In March 2017, the UK government announced an investment of
experiencing stagnancy. This trend is expected to continue during the forecast GBP 23 million. The funding is expected to be used for building new
period, in turn restraining the hydrogen compressor market in the country. infrastructure for hydrogen fuel stations and encourage the use of hydrogen
vehicles in the country, which in turn is expected to drive the hydrogen demand
• In order to reduce the production of the fuel oil and produce products that meet
for mobility, during the forecast period.
the market demands, many refineries are using catalytic crackers. The catalytic
cracking process requires hydrogen for its operation. As during the forecast • New investments in hydrogen fuel station infrastructure and growing hydrogen
period, the refineries are expected to produce an excess of petrol and fuel oil, demand for the mobility are expected to drive the demand for hydrogen
the use of the catalytic cracking process is expected to increase, which in turn is compressors during the forecast period.
likely to help offset the decline in hydrogen compressor demand in the refining
industry in the country.
8.3.2 GERMANY 67
• Germany has one of the largest petrochemical industries in the region. The Refinery Capacity in thousand barrels per day, Germany,
country has less strict regulations to boost the growth of the industry. As a 2011-2017
result, the petrochemical industry in the country is expected to register a decent

2418
growth, and is expected to drive the hydrogen compressor demand during the 2247 2247 2188 2188 2188 2188
forecast period.
• The German government has plans to adopt cleaner fuels, which is expected to
constrain the hydrocarbon consumption, particularly in the oil refining industry.
Oil refining capacity and refined oil throughput in the country has remained
stagnant during the period 2014-17. 2011 2012 2013 2014 2015 2016 2017
Source: OPEC
• The lack of demand for refining products is expected to restrain the refining
industry in the country, in turn restraining the hydrogen compressor market • In 2017, the German government contributed EUR 1.8 million (USD 2.1 million)
during the forecast period. for the construction of the two new refueling stations. Furthermore, by 2018, the
country plans to have 100 filling stations. As many as 400 service stations are
• In order to reduce air pollution, the German government is encouraging the use
scheduled for construction in Germany by 2023, as part of the H2 Mobility joint
of hydrogen vehicles instead of vehicles fueled by hydrocarbons. The country is
venture program.
among the world leaders in building a nationwide network of hydrogen fuel
• With the availability of the hydrogen distribution channels, hydrogen vehicles
stations. As of 2017, Germany has a total of 56 hydrogen refueling stations in
are expected to register significant growth during the forecast period. Due to
operation, sponsored by the German government via its National Innovation
the growing number of hydrogen vehicles, the demand for the production and
Programme for Hydrogen and Fuel Cell Technology (NIP). Of the total 56
transportation of hydrogen, as well as the more extensive network of hydrogen
fueling stations, 45 are publicly accessible. A total of 24 public hydrogen
fuel stations are expected to increase, which in turn is expected to drive the
refueling stations had gone into operation in 2017.
hydrogen compressor demand in the country.
8.3.2 GERMANY 68
• According to European Union directives, which has been put into action since
2011, Germany has to limit the annual ammonia emission to 550-kilo metric Ammonia Emission in kilo metric ton, Germany, 2010-2015
ton. But since 2010, the country has not only consistently failed to meet the
requirements, but also the ammonia emission has increased over the years.
• Majority of the ammonia emission comes from the fertilizer and agriculture
759
in kilo metric ton

industries. To address the problems, Germany has introduced regulations on
manufacturing and use of the ammonia-based fertilizers. Despite these 737
730
regulations, the ammonia emission in the country remains high. 723
• On April 2017, in order to meet the regulations, Germany introduced new 706
amendments to the regulations, which reduced the allowed content of ammonia

in the fertilizers, in turn restraining the demand for ammonia in the country. The 681
declining demand for ammonia in the country is expected to have a negative

impact on the hydrogen compressor market during the forecast period.
2010 2011 2012 2013 2014 2015
Source: European Union

8.3.3 FRANCE 69
Refining Capacity, in thousand barrel per day, France,

• France has one of the biggest agriculture industries in the European Union. The
2006-2017
country is a major exporter of agricultural products. To support the agriculture

industry, France has become the largest nitrogen-based fertilizer consumer in
1,971
1,962
1,959
1,842
1,702
Europe.
1,610
1,513
1,375
1,375
1,375
• The diet trend in France indicates decreasing consumption of red meat and
1,245
1,245
increasing consumption of green vegetables and crops. Due to this trend, the
demand for agricultural products, and in turn, fertilizers are expected to grow.
The growing demand for fertilizers is expected to drive the fertilizer
manufacturing industry, and in turn, the hydrogen compressor in the fertilizer 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
industry during the forecast period.
• In France, the petrochemical industry witnessed a recovery from the 2008
• Companies in the country are building new petrochemical plants as well as
downturn. The finished and semi-finished plastic products sales in France is
upgrading the existing plants, in order to meet demands. One of the major
estimated to reach USD 32.044 billion in 2017. In 2017, the domestic plastic
projects in recent years was the Saint-Avold petrochemical complex in the
production in the country stood at about USD 27.7 billion.
eastern part of France, built by Total SA in May 2017. The company increased
• The production of polyolefins in the country is not sufficient to meet the
polystyrene production capacity and upgraded the polyethylene unit. In addition,
domestic demand. The country has been importing polyolefins such as
the company built additional polypropylene compounds production capacity to
polypropylene and polyethylene to cater to the domestic demand. France
meet the demand from the automotive industry.
recorded a net import of polypropylene and polyethylene worth USD 639 million
• Overall, the country is more likely to attract investments in the form of
and USD 766.79 million, respectively in 2017.
upgradation and expansion in the coming years, which in turn, is expected to
support the hydrogen compressor market during the forecast period.

8.3.3 FRANCE 70
 France’s oil consumption dropped significantly in the last decade. With

declining demand, oil refining industry has faced stagnancy. During 2006-2017, Oil Consumption in thousand barrels per day, France,
the refining capacity of France dropped by about 36.5%. 2006-2017
 For transportation, France is moving toward electric vehicles. France is one of

1,942
1,911
1,889
the leading countries in renewable energy power generation and is expected to
1,822
1,763
1,730
1,676
1,664
1,616
1,615
1,615
1,600
invest heavily in renewable energy in the coming years. Growing share of
electric and renewable energy has reduced the oil consumption in the country.
This trend is expected to continue over the forecast period.
 Due to the lack of demand, the oil refining capacity of France is likely to
decline, which in turn, is expected to restrain the hydrogen compressor market
during the forecast period.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

8.3.4 ITALY 71
• Italy is a major exporter of cars, vehicle parts & accessories, trucks & vans,
Oil Refining Capacity in thousand barrels per day, Italy,
medicaments, machines & technologies, electrical devices, among others. With 2006-2017
rise in exports, the manufacturing of such products has also witnessed an

2526
2377 2396 2396 2396
increase. Petrochemical products are widely used as raw material in the 2276
2098
1861 1900 1900 1900 1900
production of such products.
• Italy is a net importer of polyolefins, with the net import of polyethylene and
polypropylene worth USD 876.581 million and USD 876.581 million, respectively
in 2017. Italy has not witnessed any new investments in the domestic market to
increase polyolefin production mainly due to concerns over the economic
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
instability of the country. Source: BP Stats
• Due to this reason, Italian-based petrochemical companies are majorly planning • Owing to the economic stagnancy, and declining share of oil in the energy mix,
their investments in other countries such as Iran, United States, and others. This the demand for oil has witnessed a decline during the last decade.
indicates lower prospects of growth for the investors in the domestic market.
• The refining industry in Italy has suffered due to low demand for oil and low
• During the forecast period, new significant investments in the petrochemical margins. Many refineries have registered losses and as a result, have been
industry in Italy are not expected, despite high demand for the products, which in shut down since 2006. During 2006-2017, the refining capacity of Italy was
turn, is expected to restrain the market during the forecast period. reduced by almost 25%.
• Italy has experienced an economic stagnancy during the last decade. As a result, • The trend is expected to continue during the forecast period. New refinery
the energy demands of the country have experienced slow growth. At the same construction projects are not expected to start, which in turn, is expected to
time, the share of the renewable energy and natural gas in primary energy constrain the hydrogen compressor market in the country during the forecast
consumption mix is increasing, while the share of oil is decreasing. period.

8.3.5 SPAIN 72
• Compared to other countries in the European Union, oil amounts to a larger

Oil Refining Capacity in thousand barrel per day, Spain,
share of the primary energy mix of Spain. Spain is investing in alternative fuel, 2009-2017
in order to reduce the dependency on gasoline,. Hydrogen is considered one of 1562 1562 1562

1542 1546 1546 1546
the alternative fuels. With an aim to promote the use of hydrogen, the
Government of Spain has announced its plan to install 20 hydrogen fuel
1421
stations by 2020.This is expected to drive the hydrogen compressor market
1362
during the forecast period.
• Spain’s refining capacity and throughput have witnessed a substantial growth

since 2009. During 2009-2017, the country’s refining capacity has increased by
2009 2010 2011 2012 2013 2014 2015 2016 2017
almost 15%. Refined petroleum is one of the major exports of Spain, and Source: BP Stats
hence, a major source of revenue. The country is expected to witness

substantial growth in investment in the refining industry. Some of the major
• The growing investments in the refining industry are expected to drive the
projects during the forecast period are:
hydrogen compressor market in the country during the forecast period.
 Repsol has announced its refinery expansion projects in Cartagena,
• Spain is a major producer of cars, delivery trucks, vehicle parts and packaged
Spain. The company is expected to invest about EUR 3.2 billion for this
medicaments. Due to the strong manufacturing industry, the country is a
project, which will increase the capacity from 100,000 barrels per day to
significant consumer petrochemical products. Despite the high demand for the
220,000 barrels per day. This facility is expected to become one of the
petrochemical products, Spain has not witnessed substantial investments in
most modern refineries in the world.
this sector. To meet the demands, Spain imports petrochemicals worth about
 BP PLC has announced a project to modernize a major unit in its USD 11 billion.
refinery in Castellon Spain.

8.3.5 SPAIN 73
• The refining throughput is expected to increase, which is expected to provide the country with the availability of abundant feedstock for the petrochemical industry.
Labor costs in Spain are relatively low compared to other countries in Europe.
• Due to the domestic presence of a large market for petrochemical products, availability of feedstock, and low labor costs, Spain has an opportunity to become an
attractive destination for investors in the petrochemical industry. If the government of Spain utilizes this opportunity, new investments in the petrochemical industry
are expected to support the growth of the hydrogen compressor market in the country.

8.3.6 RUSSIA 74
• Russia's fertilizer market is relatively small. Only about 20% of the total fertilizer Oil Refining Capacity: Thousand barrels per day, Russia,
production of Russia is sold in the domestic market. The Russian fertilizer 2007-2017
6,407 6,513 6,583 6,584
market is rapidly expanding, growing at faster rate than the global average. 6,279

5,563 5,721 5,816
5,471 5,387 5,425
• The majority of fertilizers produced in the country are exported to Asia-Pacific,
with China being one of the major importers of Russian fertilizers. China's
ammonia production has been hampered due to lack of feedstock, which in
turn, has had an adverse effect on China's fertilizer industry. It stands to reason
that China's fertilizer imports shall grow during the forecast period. Along with
India's growing demand for fertilizers and the expanding domestic market, this 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
is expected to facilitate growth in the fertilizer manufacturing industry, which in Source: BP Stats
turn, is expected to bolster the hydrogen compressor market in the country • The ‘Tax Maneuver’ policy is expected to drive investments to modernize the
during the forecast period. refineries. The government is expected to invest heavily in upgradation and
• Russia’s refining capacity has increased substantially during the last decade, expansion of existing refineries.
with an increase of about 20% in the 2007-2017 period. • The petrochemical industry in the country is not well developed. However, the
• Russia has a fairly large but old refining infrastructure, which does not meet government has made efforts to improve the petrochemical industry infrastructure
modern fuel requirements. In addition, owing to their age, they have and is expected to target the investments in building new petrochemical plants.
significantly lower efficiency compared to modern refineries. To modernize the • In order to invite investments in the petrochemical and refining industries, the
refining infrastructure, the government of Russia introduced a new policy Russian government is encouraging foreign players to invest in the country. The
dubbed the ‘Tax Maneuver’. As per this policy, the tax on mineral extraction has new strategy is expected to help drive more investments in Russia's refining and
been increased, with the money being used to subsidize the refining industry. petrochemical sector, in turn driving the demand for hydrogen compressors in the
country.
8.3.7 REST OF EUROPE 75
• The agriculture industry in Central and Eastern Europe consumes a larger  Moreover, INEOS also has plans to increase the ethylene capacity of its
quantity of fertilizers per hectare compared to western countries, with 86% of two cracker facilities - Refineries in Norway and Grangemouth in
agricultural land in Central and Eastern Europe relying on fertilizers, as opposed Scotland. The company plans to increase the capacity of each plant
to 60% in Western Europe. above 1 million ton per year.
• The labor wages and land prices in Central and Eastern Europe are generally  Borealis AG has been conducting a feasibility survey for a new, world-
lower compared to Western Europe. Therefore the capital and operation costs to scale propane dehydrogenation (PDH) plant that it intends to set up at its
the fertilizer manufacturing industry is considerably lower in Central and Eastern Belgium site. The final investment plan is likely to be informed in the third
Europe. Due to high demand for the product and lower costs, the Central and quarter of 2018, with the construction of the plant expected to
Eastern European region has witnessed strong investments in the fertilizer commence by 2021. The new PDH plant is expected to have a
manufacturing industry. This trend is expected to continue, driving the hydrogen production capacity of 740 kilotons of propylene per year.
compressor market in the fertilizer industry.
• The growth of the polyolefins market in Turkey is fueled by the growing demand
• The petrochemical product consumption in Central and Eastern European for LLDPE over other PE products due to the broader use of metallocene
Countries is nearly 20 kg per person. products. Turkey has adopted the petrochemical strategy of leading countries,
such as South Korea, Taiwan, and Singapore, none of which has its own
• In countries such as Belgium, Scotland, and Netherlands, among others, new
energy resources. Growing investments and the new petrochemical strategy
investments in the petrochemical industry are expected. Some of the major
adopted by Turkey are expected to drive the petrochemical industry in this
upcoming projects in the region are as follows:
region, in turn, driving the hydrogen compressor market during the forecast
 INEOS planning to construct a world-scale PDH (propane period.
dehydrogenation) unit in Europe. The plant will have the capacity to
produce 750,000 metric tons of propylene per year, albeit the company
has yet to finalize its location in Europe.
8.3.7 REST OF EUROPE 76
• Europe is moving toward gas and renewable energy to meet its energy needs, which is constraining the oil demand in the region. The regulations put in place by the
European Union and the individual national governments are expected to further reduce the refined oil demand in the region. For context, the new cap on the sulfur
content of the marine fuel, to be put in action after 2020, is expected to reduce the demand for oil in the marine industry.
• With low oil demands, many refineries in the region are unable to find buyers. The other major problem faced by the European oil refineries is that they have
witnessed a consistent drop in margin since 1990, and as a result, the margin of European refineries is significantly lower than the global average. Lower margins
and an inability to find buyers are forcing refinery operators to shut down their plants. With a number of refinery plants expected to shut down during the forecast
period, in turn, the hydrogen compressor market is expected to be constricted.

77
8.4.1 Saudi Arabia
8.4.2 United Arab Emirates

8.4 MIDDLE EAST & AFRICA 8.4.3 Nigeria
8.4.4 Rest of Middle East & Africa

8.4.1 SAUDI ARABIA 78
• In Saudi Arabia, hydrogen compressor finds application in refining, Oil Refining Capacity: Thousand barrels per day, Saudi
Arabia, 2010-2017
petrochemical and fertilizer industries.
• Construction of Jazan Refinery with a capacity of 400,000 barrels per day 2899 2899 2899 2821
In thousand barrel daily

reached more than 50% completion by January 2018. The pre-commissioning 2507
2109 2107 2107
activity for the refinery is scheduled to begin in mid-2018.
• Saudi Aramco, a state-owned oil and gas company has signed an MoU with
SABIC (a chemical manufacturing company) for developing a fully integrated
crude oil to chemical (COTC) complex in the Kingdom of Saudi Arabia. The
2010 2011 2012 2013 2014 2015 2016 2017
complex is expected to process 400,000 barrels per day of crude oil and
Source: OPEC
produce around 9 million tons of chemicals and base oils, annually. Said
operation is expected to start by 2025. • As a result, both the refining and petrochemical industry is expected to create
• Under the Saudi Vision 2030, the kingdom is planning to reduce its significant demand not only for new hydrogen compressor, but also for the
dependence on crude oil and to diversify its economy. The chemical and maintenance of both new and existing ones in the country.
petrochemical sector is an important sector in achieving this aim.

In February 2018, Japan and Saudi Arabia started collectively working to
• The chemical industry in GCC countries witnessed significant growth in 2017,
explore the prospect of extracting hydrogen from Saudi crude oil so that it can
reaching 167 million tons, driven by the increase in production in the
transported to Japan in the form of ammonia. This is expected to increase the
Kingdom. In 2017, Saudi Arabia achieved 5.8% growth rate in the
demand for hydrogen compressor in the country for storage and
petrochemical industry, outpacing the 3.7% growth rate of the region as a
transportation purpose.
whole.

8.4.2 UNITED ARAB EMIRATES 79
Oil Refinery Capacity: Thousand barrels per day, United Arab

• In addition to being a hydrocarbon-based economy, the United Arab Emirates is
Emirates, 2010-2017
becoming one of the world’s most important financial centers and a prominent
1,124 1,124 1,124

trading center in the Middle East. Investments in non-energy areas, such as
infrastructure and technology, continue to provide United Arab Emirates with
675 675 675 707 707
long-term security against global economic stagnation and oil price declines.
• The growing interests in the infrastructure and technology development of the

country are expected to supplement the demand for petrochemicals and refined
hydrocarbon products in the country.
2010 2011 2012 2013 2014 2015 2016 2017
• Furthermore, in a bid to meet the growing domestic and global demand for Source: OPEC
specialized chemical products, the national oil company ADNOC plans to • Sour gas contains a high concentration of hydrogen sulfide, which needs to be
increase crude refining capacity by 60%. As the downstream investment is refined efficiently. The demand for hydrogen compressors is expected to further
expected to witness a significant surge, the demand for hydrogen compressors is supplement the same, as United Arab Emirates plans to strengthen its fertilizer
expected to increase in the United Arab Emirates. and ammonia production industry by using H2S feedstock to meet the rising
• Although the prospects for the United Arab Emirates's petrochemicals sector demand from Asia-Pacific.
remain bright for the foreseeable future, many challenges still exist. One of them • In July 2017, Abu Dhabi National Oil Co (ADNOC) and Vienna-based Borealis
is the supply of feedstock in the country. Although Abu Dhabi has extensive approved the fourth significant expansion of the polypropylene plant known as
reserves of both oil and gas, these are diminishing resources. To meet up with its Borouge 4, with an intention of doubling the plant’s capacity. Similarly, in Feb
strategic petrochemical targets, the company is expected to increase usage of 2018, ADNOC announced a USD 3.1 billion projects to upgrade the Ruwais
feedstock from sour gas fields. refinery, with the aim of integrating more sour crude as feedstock.

8.4.3 NIGERIA 80
• Hydrogen compressors find application in urea production process, and Nigeria Oil Refining Capacity: Thousand barrels per day, Nigeria,
2010-2017
In thousand barrel daily

consumes about 500,000 metric tons of urea annually, with the domestic urea
production capacity standing at over 1.5 million metric tons. The government is 445 445 446 446 446 446 446 446
taking steps to invite private investors in urea production and NPK-based

fertilizers. Efforts are aimed at making Nigeria a hub for fertilizer production and
to make it not only self-sufficient but also the biggest exporter of fertilizer in the
Africa. 2010 2011 2012 2013 2014 2015 2016 2017
Source: OPEC
• The growth of the fertilizer industry is further augmented by the availability of
gas, which is an essential feedstock for urea production. The availability of • The result is that the Dangote group is building the largest oil refinery with a
feedstock and government efforts to increase fertilizer production are expected nameplate capacity of 650,000 bpd of oil, which is not only expected to meet
to drive the fertilizer production industry. Nigeria’s consumption, but also allow the country to become an exporter of the
refined product. The Dangote oil refinery is expected to start production by
• Nigeria’s refining facilities are very old, and suffer from a lack of maintenance
2019. Apart from that, in May 2017, Emmanuel Ibe Kachikwu from the Ministry
and inconsistent feedstock. As a result, about 80% of the country’s downstream
of State for Petroleum Resources of Nigeria announced that the Nigerian
product requirement is fulfilled by the imports.
Government has reached an agreement with Agip to build a new refinery of
• The Nigerian government plans to process all the domestic refined product
150,000 bpd capacity. Owing to increased investments to build new
consumption locally by 2019. In order to improve the downstream industry
infrastructures, Nigeria is expected to be the fastest growing market for the
production, and to reduce the dependence on imports, Nigeria's Department of
downstream industry in the region.
Petroleum Resources (DPR) and the state-owned Nigerian National Petroleum
• Owing to growing fertilizer production and refining industry, Nigeria’s hydrogen
Corporation (NNPC) have opened their doors to private investors- both
compressor market is expected to register the fastest growth in Africa during
international and local.
the forecast period.

8.4.4 REST OF MIDDLE EAST & AFRICA 81
• The demand for hydrogen compressors in the countries of the Middle East & Africa region, such as Iran, Egypt, South Africa, and Ghana, is expected to significantly
increase during the forecast period, owing to growing oil & gas downstream and fertilizer sector.
• Iran has set itself an ambitious new plan to invest in the petrochemical industry heavily, and to increase production capacity from 64.1 million tons/year in 2015 to 130
million tonnes/year by 2025. During the forecast period, new ethylene production investments and the development of polymer production capacity are on the agenda
of the Government. The sub-sectors of Iran’s petrochemical industry, such as plastics, rubber, fiber, and packaging, are also expected to witness strong growth. This
is expected to supplement the demand for hydrogen compressors in the country from the refinery & petrochemical plants. But the geopolitical tension and possible
tightening of the sanctions by the US government are expected to restrain the market in the country.
• Similarly, Egypt's chemical sector is considered to be one of the strategic industries as it adds value to the mineral reserves of the country. Egypt is expected to invest
heavily in the chemical sector during the forecast period, in order to meet up with the growing domestic and global demand for specialized chemical and fertilizers.
There are several expansion projects, such as the installation of new production units in Misr Fertilizers Production Company (MOPCO), and the Egyptian Ethylene
and Derivatives Company (ETHYDCO), with USD 4 billion in investment. This is expected to supplement the demand for hydrogen compressors in Egypt.
• South Africa is one of the major fertilizer exporters in the Middle East and Africa region. The majority of the country's exports goes to African countries and the
Americas. South American countries such as Argentina, Brazil, and Chile have registered substantial growth in agricultural production. Due to the growing population,
the demand for agriculture products in Africa is growing at a significant rate, which in turn is expected to drive the agriculture industry in the region.
• South Africa has 15.36 million hectares of area that comes under agriculture, which makes up about 14% of the national territorial area. Due to the large agricultural
industry, domestic demand for fertilizers in South Africa is strong. Factors such as growing agriculture industry in Africa and South America and strong domestic
demand are expected to drive the fertilizer industry in South Africa, which in turn, is expected to drive the hydrogen compressor market.
• Ghana is also slowly increasing its investment in oil & gas downstream sector. In January 2018, the Ghana government announced their ambitious plan to build a
new oil refinery to replace the Tema Oil Refinery (TOR) within the next three to four years. Similar investments are expected to increase in the country during the
forecast period, which in turn, is expected to supplement the demand for hydrogen compressors in the refining industry.
8.4.4 REST OF MIDDLE EAST & AFRICA 82
Oil Refining Capacity: Thousand barrels per day, by Country, Middle East, 2013-2017
1,901
1,901
1,781
1,781
1717
936
936
936
936
900
900
900
830
762
761
726
726
726
726
651
651
651
651
651
640
485
485
485
485
485
433
429
283
283
273
Iran Iraq Qatar Kuwait Algeria Egypt South Africa
2013 2014 2015 2016 2017
Source: OPEC

83
8.5.1 Brazil
8.5 SOUTH AMERICA 8.5.2 Argentina
8.5.3 Rest of South America

8.5.1 BRAZIL 84
• Brazilian refined fuel demand is expected to continue outpacing the country’s Oil Refining Capacity: Thousand barrels per day, Brazil,
domestic refining capacity, unless a major refining capacity is added. Brazil had a 2010-2017
refining capacity of 2.29 million barrels per day in 2017, coming from 16 2,278 2,278
In million barrels per day

2,278
2,235
refineries; among these, Petrobras, the state-owned company, operates 12
refineries with a total processing capacity of about 2.147 million barrels per day.
2,093
The hydrogen compressor market is expected to have only moderate growth in
1,988 2,010 2,000
the country.
• Government debt rose up to 74% of GDP in 2017, up from 51.54% of GDP in

2013; the country’s economic performance created uncertainty in the investors
2010 2011 2012 2013 2014 2015 2016 2017
from 2010 onwards. Moreover, public protests, presidential impeachment, and Source: OPEC
corruption scandals have further exacerbated Brazil's economic problems. • The Brazilian fertilizer market value was estimated to be USD 12.55 billion in
Inflation in the country was 10% in 2016, up from 6% in 2013. However, due to 2017 and is expected to witness a CAGR of 4.5% during the forecast period, to
significant improvement in agricultural production, the country’s inflation fell to reach USD 15.69 billion by 2022. Consecutively, it’s a positive indicator for the
2.95% in 2017, a 7% drop from 2016. The decline in inflation rate has allowed hydrogen compressor industry in the country.
central banks in Brazil to reduce the interest rates, which is expected to help
• Urea accounts for the largest share of nitrogen fertilizer consumption. Brazil had
improve the country’s economic condition during the forecast period.
about 4.4 million metric ton of total urea imported in 2014, 2.8 million metric ton in
• Given that the country’s economic condition improves, there is significant
2015, and 2.9 million metric ton in 2016, indicating a healthy domestic demand,
potential for growth in the chemical and petrochemical industry. During the
which is not being met by the domestic production. Therefore, healthy domestic
forecast period, economic revival is expected, which is likely to contribute
demand coupled with the growth of fertilizer industry is an opportunity for fertilizer
towards a modest growth for hydrogen compressors market in the country.
production industry and in turn, hydrogen compressor market in the country.

8.5.2 ARGENTINA 85
• During the last decade, Argentina’s economy has faced instability. Since 2010, Average Annual Refinery Utilization Rate (%), Argentina,
the inflation rate in the country has remained over 10%, and in 2017, it reached 2007-2017
24.8%. The economic slowdown has affected downstream sectors negatively. 96% 92%
85% 85% 83% 81% 80% 80% 82%
Despite the increase in refining capacity, the refining output has declined during 78% 76%
2007-2017, and the average utilization rate of refineries in the country dropping
in %
from 96% in 2007 to 76% in 2016.
• Since 2015, the strategy of the Government of Argentina has been to invite
foreign direct investments, including in refining business, to spur the economic 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
growth. During 2016, fuel prices in the country were increased four times, to be in Source: BP
line with the international market, to attract investments in the downstream
• The availability of feedstock, coupled with growing investment in oil & gas
market. The focus of the future reform is expected to be on allowing the
downstream sector, and government policy to invite Foreign Direct Investment
individual downstream companies to set the product prices to ensure a
(FDI), are expected to drive the petrochemical industry in the country.
competitive environment. Such policies are expected to drive the oil & gas
downstream market in the country. • The growing investments and government policy to liberalize the market is
expected to drive the downstream sector growth, in turn supporting the demand
• YPF, a major refining company in Argentina, has announced plans to invest in the
for the hydrogen compressors during the forecast period.
oil & gas industry. Royal Dutch Shell has also announced the plans to invest
USD 1.2 billion by 2020 in downstream projects and shale oil production projects. • Argentina is a significant producer and exporter of agricultural products. With
economic stability, the agricultural industry, and, in turn, the fertilizer production
• Argentina has a small petrochemical industry, but with a growing refining industry,
industry, is expected to register a substantial growth during the forecast period,
a large quantity of feedstock is expected to become available for the
driving the hydrogen compressor market in the country.
petrochemical industry.

8.5.3 REST OF SOUTH AMERICA 86
Oil Refining Capacity: Million barrels per day, South America,

• In the Rest of South American countries, such as Venezuela, Ecuador, and Peru,
2010-2017
among others, the scope for the hydrogen compressor market in the medium 2,000.00
In million barrels per day

term remains limited, as no major investments are yet planned in the
1,500.00
petrochemical and fertilizer industry in these nations.
• In the Rest of South America, the refining capacity addition in 2017 was not of 1,000.00
much significance; major refining countries, such as Venezuela, Colombia, and

500.00
Curacao did not witness any significant refining capacity growth during 2015-
2017. 0.00
2010 2011 2012 2013 2014 2015 2016 2017
• However, a few projects and trends that will likely drive the demand for the Venezuela Colombia Curacao Source: OPEC
hydrogen compressor market include:
• South America’s fertilizer demand growth is expected to remain one of the
 Equatorial Guinea planning to build a USD 2 billion oil-refining complex fastest during the forecast period. But the region is expected to remain
that may be operated by Venezuela’s state-run crude producer, Petróleos dependent on imports to meet the demand, due to a lack of new significant
de Venezuela, S.A. (PDVSA). This is expected to create demand for the fertilizer production projects during the forecast period, which restrains the
hydrogen compressor for application in hydrocracking, hydrotreating, demand for hydrogen compressors.
hydroprocessing and other processes.
• Overall, the demand for hydrogen compressor is likely to be primarily for the
 Ecuador expecting investments in the refining petrochemical complex
replacement of old equipment, owing to lack of major refinery and
after the increase in crude oil production capacity, which will be fuelled by
petrochemical projects commissioned.
new investments. However, this is expected to provide an opportunity for
the hydrogen compressor market in the long run.

87
9.1 Corken Compressors
9.2 Ariel Corporation
9.3 Burckhardt Compression AG
9.4 Hydro-Pac Inc.
9.5 Haug Sauer Kompressoren AG

9. KEY COMPANY PROFILES 9.6 Sundyne
9.7 Howden Group
9.8 Indian Compressors Ltd
9.9 Atlas Copco AB
9.10 Gardner Denver Holding Inc.

9.1 CORKEN COMPRESSORS - COMPANY OVERVIEW 88
Introduction: It is a diversified company, which serves a global customer base. The company's compressors, pumps, and
engineered packages are used by many companies throughout the global market. The company is among the global leaders in
the manufacturing field of sliding vane pumps, reciprocating compressors, turbine pumps, anhydrous ammonia, accessories for
LPG (propane, butane), in addition to other volatile, toxic gases and liquids used in the energy, process gas, and transport
industries.
In 1991, the company became a part of the IDEX Corporation, a global fluid handling company. IDEX Corporation is known for Founded in 1924
its expertise in highly engineered fluid handling products and systems, fire safety equipment, and health and science products.
Corken has achieved registration with the International Quality Standard ISO 9001 and the Environmental Management
Oklahoma City,
Standard ISO 14001. Moreover, the company designs and manufactures products meeting industry standards, such as: HQ United States
• Underwriters Laboratories (UL)

Operations: Asia, Africa,
• Canadian Standards Association (CSA) Europe, the Middle East,
South America, and North
• High Pressure Gas Safety Institute of Japan (KHK) America
• Bureau Veritas of France +1 (405) 946-5576
• European Union (EU)

http://www.corken.com
• Pressure Equipment Directive (PED)
• ATEX Equipment Directive
• European Union (EU) Machinery Directive

9.1 CORKEN COMPRESSORS – BUSINESS OVERVIEW 89
• The company has a few decades of experience with the LPG industry, for gas compression technology, which has enabled the company to develop a versatile line of
small horsepower (7.5 to 75 hp) gas compressors. To handle hazardous, volatile, toxic and corrosive gases, Corken offers many variations of its basic compressor
models in a D- or T-Style oil-free design. D-Style oil-free compressors are used with flammable and corrosive gases as well as most general gas handling
applications. Whereas, T-Style oil-free compressors are used with toxic gases and in applications where maximum leakage control is desired.
• The company possesses expertise in solving complex LPG pumping problems carried over to other industrial pump markets. As a result, Corken gave birth to an
industrial pump line comprised of three technologies. The regenerative turbine and positive displacement sliding vane are capable of handling a wide range of
liquids, differential pressures and viscosities up to 20,000 SSU. Over the years, the industrial pump line has expanded into many industries and applications.
Industries
Transport Tanks and

Process Industry Energy Industry
Tanker Ship Industries
• Process Industry: Industries or market concerned with processing bulk materials into a finished product.
• Energy Industry: The energy industry includes any company or industry involved in the production and sale of energy.
• Transport Tanks and Tanker Ship Industries: Industries involved in the transportation of all sort of fluid products, raw material, and finished goods, which needs to be
transported at some point.

9.1 CORKEN COMPRESSORS – RELEVANT PRODUCTS AND SERVICES 90
Industrial Gas Compression Solutions
Compatible industrial compressors for a wide variety of hazardous, volatile, toxic, and corrosive gases, such as chlorine, vinyl chloride, methyl chloride, sulfur
dioxide, butadiene, hydrogen, helium, and many more.
Reciprocating
Compressors
Liquid Transfer Reciprocating Compressors
(Industrial)
Solutions (Industrial) Pressure Boosting Evacuation Solutions
• D-Style Oil-Free
wide variety of industrial • Plain Style Reciprocating Solutions • Commonly utilized on
Reciprocating
reciprocating compressors Compressors • Used in gas and air mobile evacuation
Compressors
for liquid transfer and • T-Style Oil-free Reciprocating boosting applications units
• T-Style Oil-Free
vapor recovery Compressors
Reciprocating
Compressors

9.1 CORKEN COMPRESSORS - ANALYST VIEW 91
The company has industry experience for more than 90 years, and was founded in 1924 as a distributorship for water and boiler feed pumps in
Oklahoma City, Oklahoma. Furthermore, during the 1940s, it began manufacturing compressors and pumps for the LPG industry. The
company's focus on organic growth, merger with IDEX Corporation, and increasing market recognition has led it to achieve a prominent
position in the global hydrogen compressor market.
The merger with IDEX Corporation, a global fluidics company serving high-growth specialized markets, gave the company enhanced operating
ability as it expanded the company's consumer base. The company is likely to maintain its significant position during the forecast period.
“Corken Compressors' focus on organic growth and strategic merger and acquisition strategy, when combined with its decades-
old experience in the industry, is expected to drive the company's market recognition and profit during the forecast period.”
– Mordor Analysis

9.2 ARIEL CORPORATION - COMPANY OVERVIEW 92
Introduction: Ariel Corporation manufactures separable reciprocating gas compressors, which are utilized by the
global energy industry to extract, store, process, transport, and distribute natural gas from the wellhead to the end-
user. It offers reciprocating compressor, rotary compressor, and compressor parts. It also provides specialized API-
618 reciprocating compressors for the process industry. It also offers the software Ariel Performance Program Founded in 1966
designed for the selection of new gas compressor configuration and evaluation of existing configurations. The
company’s compressor finds application in upstream, midstream and downstream. The company has a long
established network of qualified distributors and packagers. Mount Vernon,
HQ United States
The company maintains the standards through ISO 9001:2008 certification.
Operations: North America,

Latin America, Europe, Asia-
Pacific, and the Middle East.
53,000+ 100+ 24 hours

Numbers of compressors Countries where Ariel Availability of factory tech +1 740-397-0311
produced since 1966 compressors operate service and parts personnel
www.arielcorp.com

9.2 ARIEL CORPORATION – BUSINESS OVERVIEW 93
Business Overview: Ariel with 50 years of industry experience provides gas compressor for various applications:
Upstream Midstream Downstream

• Acid Gas Injection
• Enhanced Oil Recovery
• Compressed Natural Gas
• Natural Gas Gathering • Pipeline Transmission
• Refining, Petrochemical, and
• Air and Nitrogen Injection • Gas Storage Injection Withdrawal
Industrial Gases
• Landfill
The company provides hydrogen compressor under process gas compressor.

Process Gas Compressors:
• It is a reciprocating compressor used in refineries, petrochemical, and industrial gas industries.
• The company offers a wide range of API 618 moderate speed process compressors designed and manufactured to meet the demand of industries.
15+ 31 1200+
Years producing durable Number of Ariel models suited Cylinders offered for
Process compressors for Process service Process service

9.2 ARIEL CORPORATION – RELEVANT PRODUCTS AND SERVICES 94
Process Gas Compressors:
API 618 COMPRESSOR

SPECIFICATIONS
5200
Rated BHP
5.75 in
Stroke
Common Process Applications 75,000 lbs.

Tension Rod Load
• Hydrocracking
• Hydrotreating 80,000 lbs.
• Hydrogen Production Gas Compression Rod Load
• Hydrodesulfurization
• Hydrogen (Make-up and Recycle)
2.875 in.
Piston Rod Diameter

9.2 ARIEL CORPORATION - ANALYST VIEW 95
The company has a long established network of qualified distributors and packagers. It has more than 45 distributors across the
world. It helps serve a large number of customers where sales force cannot reach and also helps boost revenue and profitability.
The company offers a performance program: Ariel Performance Program, which is used to evaluate the capabilities of existing
equipment and optimize equipment performance as per application and operating conditions. For customers purchasing a new gas
compressor, it can be used to within a wide range of applications and conditions to assist in selection. Such platforms help
customers choose the best option for their use.
“Ariel Compressor has global presence with a strong distribution channel and years of experience in the market. The company is
expected to be an important player in the market”
– Mordor Analysis

9.3 BURCKHARDT COMPRESSION AG - COMPANY OVERVIEW 96
Introduction: Burckhardt Compression AG is the one of the leading manufacturers of reciprocating compressor
systems and the only manufacturer and service provider that covers a full range of reciprocating compressor
technologies and services. The company operates in two business areas, namely, compressor systems (CS), and
components, services and support (CSS). The customized compressor systems of the company are used in the
upstream oil and gas, gas transport and storage, refinery, chemical, petrochemical, and industrial gas sectors.
Founded in 1844
Burckhardt has manufacturing locations in Switzerland, India, and China; and assembly locations in Switzerland,
India, the United States, Korea, and China. Burckhardt Compression AG operates as a subsidiary of Burckhardt
Winterthur,
Compression Holding AG. HQ Switzerland
Financial Overview
Operations: Europe, North
Revenue in CHF million, 2015-2017 America, South America,
Revenue Share (%), by Segment, 2017 Asia, Australia, Middle East,
and Africa
594.60
557.73 ~2,200 Employees
487.24
In CHF million
35% Systems
Division Revenue (2017)
CHF 549.60 million
Service
Division
65% +41 52 262 55 00
2015 2016 2017
www.burckhardtcompression
Source: Annual Report Source: Annual Report .com

9.3 BURCKHARDT COMPRESSION AG – BUSINESS OVERVIEW 97
Reciprocating compressor
technologies Revenue Share (%),
by Geography, 2016
Compressor technology and Tailor-made solutions

1%
systems, a wide range of
The company offers
services and compressor 55%
Full range of services and
components.
components
32%
Global service network
2% 10%
Europe
North America
• The company is among the market leaders for reciprocating compressors systems. The company claims to
South America
be the single manufacturer and service provider that covers the complete range of reciprocating
Asia, Australia, Middle East
compressor technologies and services. Africa Source: Annual Report
• Compressor systems are used in the upstream oil and gas, storage, refinery, gas transport, chemical,
petrochemical, and industrial gas sectors.

9.3 BURCKHARDT COMPRESSION AG – RELEVANT PRODUCTS AND SERVICES 98
PROCESS GAS COMPRESSOR API 618 STANDARD HIGH PRESSURE COMPRESSOR
Design features Design Features
• Oil-free up to 300 bar or lubricated up to 1,000 bar • Cylinder configuration – ‘W’ for CU and inverted ‘T’ for CT
• Horizontal or vertical arrangement • Trunk piston design
• Rugged heavy-duty design • Skid-mounted, tested units
• Reliable Swiss quality • Anti-vibration mounts
• Material selection to fit specific application • Air-cooled design
• Advanced tribological technology for oil-free applications such • Auto condensate drain
as hydrogen compression • Concentric valves
• Top quality compressor valves for high reliability • High degree of standardization
• According to API 618 5th edition specifications • Minimal spares requirement

9.3 BURCKHARDT COMPRESSION AG – RELEVANT PRODUCTS AND SERVICES 99
REFINING EXPERTISE – SOLUTIONS FOR ALL

COMPRESSOR SOLUTIONS FOR PROCESSES
APPLICATIONS
Hydrotreating
tailored solutions for all refinery processes handling hydrogen
Hydrocracking
mixtures, off-gases, as well as abrasive, corrosive, toxic, explosive, or
Isomerization
cryogenic gases.
Reforming
Hydrotreating Hydrocracking Isomerization Reforming

9.3 BURCKHARDT COMPRESSION AG – RECENT DEVELOPMENTS 100
Jun 2017
Sep 2016 Apr 2018
IKS Industrie- und Kompressorenservice

GmbH, a German firm in Bremen was
Burckhardt Compression AG acquired
Burckhardt Compression AG launched a
acquired and successfully integrated into
Compressor Supplies & Machine Work
variety of high-quality plastic compounds -
the services division, which now operates
Ltd (CSM), a Canadian company based
Persisto 850 and Persisto 851, that are
under the name ‘Burckhardt Compression’.
in Edmonton and Drumheller, Alberta.
specially developed for sealing
This acquisition made the group the
applications in dry-running reciprocating
leading provider of services for
compressors, including hydrogen
reciprocating compressors in Germany.
compressors.

9.3 BURCKHARDT COMPRESSION AG - ANALYST VIEW 101
The company is among the market leaders for reciprocating compressors systems. Moreover, the company claims to be the single
manufacturer and service provider that covers a complete range of reciprocating compressor technologies and services. The company has
focused on strategic merger acquisition activities and organic growth, and the company is expected to maintain its significant position in the
future as well.
Since 1844, the company has been manufacturing products for the compression industries, and the experience has given the company a
competitive edge. The company caters to various sectors such as upstream oil and gas, gas transport and storage, refinery, chemical,
petrochemical and industrial gas sectors.
“The company's experience, when combined with its strategic merger and acquisition activities, has provided it a competitive edge against
its rival. The company witnessed 14% growth in 2016, and the trend is expected to continue during the forecast period.”
– Mordor Analysis

9.4 HYDRO-PAC INC. - COMPANY OVERVIEW 102
Introduction: For more than 40 years, The company has been designing and manufacturing a
complete line of high-pressure liquid pumps and gas compressors. The company provides pump Founded in 1972
or compressor, turn-key systems with compressors, PLC-based controls, valves, and piping.
Moreover, the company also provides a unique pump, gas compressors, or system tailored for
Fairview , United
customer needs. HQ States
The company has a manufacturing unit, 20,000 square feet, and an 8,000 square feet of office
space. The company sells, manufactures, and services all of its equipment worldwide from this Operations: America, Asia-
Pacific, Europe
facility itself. Moreover, the company also has a sister company in Tokyo and Gifu (Japan) by
the name Nihon Hydro-Pac. This sister company is responsible for the distribution, sales, and
service for all Hydro-Pac equipment in Japan. +1 800-394-1511
http://www.hydropac.com/

9.4 HYDRO-PAC INC. – BUSINESS OVERVIEW 103
The company provides compressors for the application of
Cold
Airbag Hot isostatic Gas assist
Hydrogen Cylinder isostatic Pressure Inert gas High-pressure Special
inflator pressing injection
compression filling pressing testing foaming homogenizing applications
filling (H.I.P.) molding
(C.I.P.)

9.4 HYDRO-PAC INC. – RELEVANT PRODUCTS AND SERVICES 104
HYDROGEN COMPRESSION
FLEXI-POWER™ GAS
LX-SERIES™ GAS COMPRESSORS
COMPRESSORS
LI’L CRITTER™ GAS COMPRESSORS

9.4 HYDRO-PAC INC. - ANALYST VIEW 105
The company has been operating in the compressors and manufacturing business for more than 45 years, and the company has experience of
manufacturing thousands of units for a variety of locations and customers. The company is likely to maintain its performance during the
forecast period.
The company is certified to manufacture pressure vessels in America and Asia-Pacific. Furthermore, the company’s sister unit in Japan is able
to manufacture products meeting Japan’s KHK high-pressure gas law. The company’s manufactured unit are able to meet European,
Canadian, as well as Chinese requirements. Supported by the company’s ability to serve the global market, it is likely to maintain its position.
“The company’s decades old experience in compressor manufacturing industry clubbed with its ability to serve the global market
is expected to help the company in making profits during the forecast period.”
– Mordor Analysis

9.5 HAUG SAUER KOMPRESSOREN AG - COMPANY OVERVIEW 106
Introduction: Established in 1896, HAUG Kompressoren AG (now HAUG Sauer Kompressoren AG), has grown on to become
one of the leading manufacturers of oil-free and dry-running piston compressors for the compression of air and gas. The
company operates through its branches across Switzerland, Germany, and China. HAUG-compressors are widely acclaimed by
its users, owing to the highest quality and reliability offered by the company. In Switzerland, HAUG Sauer sells and services a
supplementary commercial range in the area of compressed air production for industry, business, and public companies.
Founded in 1896
As part of its ongoing strategic development, Sauer Compressors Holding acquired a 100% shareholding in HAUG
Kompressoren AG. The company now holds wide expertise in offering equipment, such as individual gas compressors and air
compressors, along with services, such as engineering, consultancy, services, and spare parts, all from one source. St. Gallen,
HQ Switzerland
Operations: Europe, Asia-

Pacific
End-user Application:
~120 Employees
INDUSTRIAL MEDICINE CHEMISTRY
+41 71 313 99 55
ENERGY GAS SUPPLY ENVIRONMENT

www.haug.ch

9.5 HAUG SAUER KOMPRESSOREN AG - BUSINESS OVERVIEW 107
BUSINESS DIVISION
HAUG Compressors HAUG Customer

HAUG Gas Compressors HAUG Compressors OEM
for compressed air Service
• Compressed air supply for • Commissioning
• Recovery of leaked • SF 6 gas recovery medical and technical air in • Technical support and 24-
natural gas • Helium recovery hospitals hour hotline
• Compressed air • Service and maintenance

• Biogas and biomethane • Natural gas recovery
packages
compression • Circulation compressor compressor in power plants
• Spare parts supply
• Hydrogen and synthesis for oil-free refrigerant • Air compressor for
• Repair and troubleshooting
gas compression gases instrument air
• Training
• Nitrogen boosting • Compressed air • Oil-free boosting
• Compressors for rent
• Noble gas recovery boosting • Oil-free and oil-lubricated • Machine diagnostics and
• CO2 recovery • Oxygen boosting piston compressors, scroll remote monitoring
compressors, and screw • Compressed air
compressors for industry consumption analysis and
and research measurements

9.5 HAUG SAUER KOMPRESSOREN AG - RELEVANT PRODUCTS AND SERVICES 108
POPULAR FEATURES
• Complete Oil-free piston compressor
• Gas-tight design with integrated motor • CAPACITY - 36 Nm3/h
HAUG WTOGX • SUCTION PRESSURE – 1.03 barg
• Compressor block leak rate < 0.0001 mbar l/s
120/65/35 • OPERATION PRESSURE – 34.5 barg
• Air-cooled
• Motor powers from 0.5 to 2.2 kW • *Parameters could be customized as per client’s
• Suction pressure max. 20 bar need
• Modular cylinder configuration with cylinder

diameter up to 75 mm
HYDROGEN COMPRESSORS
POPULAR FEATURES
• Version with one cylinder for 1-stage
compression • CAPACITY - 36 Nm3/h
• Maximum flow rate at atmospheric suction • SUCTION PRESSURE – 1.03 barg
pressure approx. 10 m3/h • OPERATION PRESSURE – 34.5 barg
• Very robust and long-lasting construction HAUG QTOGX
• *Parameters could be customized as per client’s
• Compact and foundation-free installation 100/75/45
need
• Very quiet, and hence, suitable for installation
directly at the workplace

9.5 HAUG SAUER KOMPRESSOREN AG - RECENT DEVELOPMENTS 109
Dec 2017
Sauer Compressors launched cooled industrial compressor, under the

name BREEZE series. Sauer will now supply four medium-pressure
models in a newly-developed compressor series for industrial
applications. These compressors are designed for special gas-tight
designs for gases, including hydrogen, natural gas, and helium.

9.5 HAUG SAUER KOMPRESSOREN AG - ANALYST VIEW 110
The company holds a well-established supply infrastructure and a network of direct sales representatives and independent distributors and is
strategically tailored to meet the demand of end market. The company is expected to widely benefit from the same, as it is visible from its large-
scale participation and curiosity across platforms, throughout the world.
Being a part of Sauer Compressors, Haug Sauer Kompressoren now holds an extra buffer to counter the fractured market for compressors.
The company is expected to increase spending for R&D activities in improving the efficiency of the product base, and in turn, help the company
in entering newer markets.
“With the acquisition of HAUG Kompressoren AG by Sauer Compressors holding company (J.P. Sauer & Sohn
Beteiligungsgesellschaft mbH), HAUG Sauer Kompressoren AG is expected to benefit significantly during the forecast period.
This partnership offers significant opportunities for growth and success for both companies, globally, as well as technologically.
The worldwide acclaimed oil-free products of HAUG Compressors are the perfect complement to the existing oil-lubricated
compressor range from Sauer Compressors.”
– Mordor Analysis

9.6 SUNDYNE – COMPANY OVERVIEW 111
Introduction: Sundyne designs and manufactures industrial pumps and compressors. The company has
manufacturing and service facilities in the United States, France, England, China, and Spain. Sundyne’s aftermarket
services include Sundyne genuine spare parts, packaging, overhaul and repair, specialized engineering, and technical
support.
Founded in 1905
Sundyne’s centrifugal compressors are according to the API-617 and API-614 standards. The company’s high-pressure
and high-speed compressors are available in both single- and multi-stage configuration. It also designs and
manufactures seal-less reciprocating diaphragm compressors that are hermetically sealed and keep the process gas HQ Colorado,
United States
completely pure, meeting the API-618 standards. In order to function in harsh environment conditions, including
refineries and offshore platforms, specially engineered skid-packages are provided by the company.
Markets for Sundyne Compressors: Latin America, Europe, Asia-
Pacific, and Middle East.
• Refining • Chemical Processing

~900 Employees
• Petro-chemical • Power Generation
• Gas Processing • Oil and Gas Production
• LNG • Pipeline
866-786-3963
• Sulfur Specialty Gases • Refrigeration.
• Silicon Manufacturing
www.sundyne.com

9.6 SUNDYNE – BUSINESS OVERVIEW 112
Business Overview: Sundyne Corporation operates through two business segment: pumps and compressors. It provides hydrogen compressors through its
compressor business segment. The company’s compressors offer an ideal solution for hydrogen services in hydrodesulfurization and hydrotreating/
hydrocracking processes. These oil-free centrifugal compressors provide maximum reliability and efficiency.
The company’s compressors have a wide range of applications in volatile process industries, from hydrogen recovery and recycling to compressed natural gas.
The markets served, include:
• Gas Processing
• LNG Liquid Natural Gas
• Specialty Gases
• Petrochemical
• Silicon Manufacturing
• Oil and Gas Production
• Reliable Centrifugal Compressors for Power Generation Fuel-Gas Boost
• Chemical Processing
• Refining

9.6 SUNDYNE – RELEVANT PRODUCTS AND SERVICES 113
Pinnacle LF-2000 LMC-311P and 311F Pinnacle LF-2000
• Maximum Flow - 10,000 acfm • Maximum Flow - 2,000 acfm • Maximum Flow - 2,100 acfm
• Maximum Working Pressure – 5000 psia • Maximum Working Pressure – 1400 psia • Maximum Working Pressure – 1000 psia
• Stages: One to four • Stages: Single • Stages: Single
LMC/BMC-317 LMC/BMC-333 LMC/BMC-343
• Maximum Flow – 3,550 acfm • Maximum Flow - 2,100 acfm • Maximum Flow - 2,100 acfm
• Stages: Single • Stages: single • Stages: Single
LMC/BMC-337 LMC/BMC-347 BMC-34X (TYPE A)
• Maximum Flow – 3,550 acfm • Maximum Flow – 3,550 acfm • Maximum Flow - 3,550 acfm
• Stages: Single • Stages: single • Stages: Single
LMC 331P and LMC/BMC 341P and

331F 341F
• Maximum Flow – 850 acfm • Maximum Flow – 850 acfm
• Maximum Working Pressure – 1440 psia • Maximum Working Pressure – 1440 psia
• Stages: Single • Stages: single

9.6 SUNDYNE – RECENT DEVELOPMENTS 114
Nov 2016 Jan 2017
Sundyne launched a service and sales center Sundyne updated its 550HP compressor
in Abu Dhabi, in order to focus on supporting gearbox, which provides an economical
customers throughout the Middle East. It solution for accommodating higher flow rates
serves customers in Iraq, Qatar, Oman, and broader design conditions in compact
Yemen, Bahrain, Jordon, Turkey, Saudi Arabia, vertical package. The upgraded gearbox
Egypt, and the rest of the Middle East. includes new bearing and material, to increase
power ratings by 40%, when compared to the
current 400HP version.

9.6 SUNDYNE – ANALYST VIEW 115
Opening of service and sales center in Abu Dhabi has provided its customer with enhanced access to Sundyne genuine parts and
spares, along with official local services in maintenance, upgrades, repairs, conversions, and gearbox exchanges. As a result, the
revenue generated from the Middle East has increased for the company.
“Sundyne has a global presence with a wide product portfolio and constantly invests in quality tools and processes to ensure
that the product works. The company is likely to play a significant role in the hydrogen compressor market.”
– Mordor Analysis

9.7 HOWDEN GROUP - COMPANY OVERVIEW 116
Introduction: Howden Group Limited is a global application engineering business based at its global headquarters in Glasgow,
the United Kingdom. Howden Group Ltd operates as a subsidiary of Charter International Limited, which was acquired by
Colfax Corporation in January 2012.
Howden Group Limited provides industrial products helping multiple sectors improve its everyday process; from mine Founded in 1854
ventilation and wastewater treatment to heating and cooling. Its core focus on providing solution for air and gas handling. It
designs and manufactures air and gas handling equipment.
Lanarkshire,
The company serves the following industries: HQ United Kingdom
• Cement • Oil and Gas Downstream Refinery • Renewables and Environment

Operations: Asia, Europe,
• Chemical • Oil and Gas Downstream • Speciality Gases North and South America,
Australia, Africa.
• Food and Beverage Petrochemical • Transportation
• Gas Processing • Oil and Gas Upstream • Tunnels
~6,000 Employees
• Industrial Processes • Oil and Gas Midstream • Water
• Iron and Steel • Power Generation
• Mining • Refrigeration
+44 14 1885 7500
www.howden.com

9.7 HOWDEN GROUP – BUSINESS OVERVIEW 117
Business Overview: The company offers hydrogen compressor under its compressor business.
HOWDEN GROUP
Howden
BUSINESS SEGMENTS:
Compressors
•Compressors
•Fans
Reciprocating
Compressors
Reciprocating •Heaters
•Steam Turbines
•Digital Solutions
Screw Vertical
Compressors Reciprocating •Others
The company introduced diaphragm compressors “D” series in 1916.

Centrifugal Diaphragm
Compressors Diaphragm compressors are suitable for virtually all dry gases
including helium, hydrogen, and nitrogen.
Roots Hybrid
• Diaphragm compressors can be provided as fully tested skid-mounted packages, ready-for-easy installation and problem-free commissioning.
• The company’s host-based intrusion detection system (HIDS) system provides constant real-time monitoring of head integrity, a fail-safe stop procedure, and
containment of process gas in the event of a breach, thus, providing absolute safety in operation.

9.7 HOWDEN GROUP – RELEVANT PRODUCTS AND SERVICES 118
Diaphragm Compressors: Available in H series for Hydrogen Compressor
• H series is available in horizontal or vertical configurations

• Up to five compression stages, offering pressure increasing up to 450 bar, while providing
inter-stage cooling and purging condensates.
• Units are suitable for virtually all dry gases including helium, hydrogen, and nitrogen
• The hydrogen in the machine is only exposed to the metal diaphragm that acts as a
piston, and is 100% leak-free

9.7 HOWDEN GROUP – RECENT DEVELOPMENTS 119
2017
Colfax Corporation announced the acquisition

of Siemens Turbomachinery Equipment GmbH
(STE) from Siemens AG. The acquisition will
be integrated into Colfax’s Howden business
platform, broadening Howden’s range of
compression solutions, and expanding its
product offering into small steam turbines. STE
also diversifies Howden’s end-markets, and
increases its presence in the applications with
an attractive growth potential.

9.7 HOWDEN GROUP – ANALYST VIEW 120
The hydrogen compressor market is highly fragmented and competitive. To survive in such a market, the Howden Group
competes in selected niche markets with its diverse product and services portfolio.
Howden is the first company to supply compressor for the fuel cell electric vehicle (FCEV) application, as early as 1992. The
company uses its diaphragm compressor technology to achieve high pressure of 100 Mpa, and its leakage-proof feature
prevents the contamination of hydrogen. The FCEV market is niche, and the company has the opportunity to lead the market, as
very few companies provide compressors with similar features.
“Howden is currently investing in niche markets, with the help of its strong research and development base, the company is
expected to be a major supplier of hydrogen compressor in the fuel cell electric vehicle market.”
– Mordor Analysis

9.8 INDIAN COMPRESSORS LTD – COMPANY OVERVIEW 121
Introduction: Established in 1943, Indian Compressors Limited (ICL) is being considered as one of the fastest growing
companies for oil-free compression technology. ICL was initially incorporated as Didwania Brothers Private Limited. The name
of the company was later changed to “Indian Compressors Limited”, in 1988. The company is primarily involved in the
manufacturing and supply of cryogenic and centrifugal pumps, along with air and gas compressors.
The company holds a well established global sales and services network, and has manufacturing units in India and Italy. The
company also has a tie-up with Cryostar, a French multinational company, for the sales and services of pumps. Public Sector Founded in 1943
Undertakings (PSUs) are major customers of ICL. The company primarily sells to all major gas companies, steel plants, and
chemical plants.
New Delhi,
HQ India
In the financial year (FY) 2017, the company reported a net profit of INR 0.72 crore, on an operating income (OI) of INR 25.17
crore.
Operations: Asia-Pacific and
Financial Overview Europe, among other global
Operating Income in INR crore, FY 2016-2017
sales and service network
25.97 ~100-500 Employees

In INR crore
Revenue - 2017
25.17 INR 25.17 crore
+91-11-30839000
Fy 2016 FY 2017
www.didwania.com
Source: ICRA

9.8 INDIAN COMPRESSORS LTD – BUSINESS OVERVIEW 122
High Flow Process Gas Compressors
Diaphragm Compressors
DIDWANIA Wurzen Process-Gas Compressor
COMPRESSORS
Oil-Free Air Cooled Compressor
Industrial Oxygen Compressor
INDIAN COMPRESSORS
INDUSTRIAL BRAND
LIMITED
Cylinder Filling Pumps
Skid-Mounted Pump and Vaporizer

CRYOPUMP
ASIA Centrifugal Pump Skid
Centrifugal Transfer Pump

9.8 INDIAN COMPRESSORS LTD – RELEVANT PRODUCTS AND SERVICES 123
OIL FREE DIAPHRAGM TYPE

RECIPROCATING TYPE COMPRESSOR
FEATURES
• Oil-free compression
• Leak-tight
• Highest safety with
Hydrogen gas
• Global after sales
network

9.8 INDIAN COMPRESSORS LTD – ANALYST VIEW 124
The company’s turnover remained moderate at INR 25.17 crore, in FY2017. The company is expected to depend on new orders from the
expansion and revamp plans of key end user industries, namely oil and gas. As a result, the company is expected to remain exposed to
cyclicality in the end user industries. Further, the profitability of the company dipped sharply in FY2017, with operating profit margin (OPM)
declining to 7.80%, which may affect the company’s expansion plans.
However, the company’s promoters are technically competent, and have extensive experience in the business of compressors and pumps. The
company has subsidiaries in foreign countries that are in the similar business lines and have strong operational and financial ties with ICL.
Further, their well established relationships with customers over the years, is profitable for business growth, and it is expected to aid the
company’s expansion policy.
“Indian Compressor Limited is expected to hold an in-hand order of approximately INR 50 crore, which is expected to garner revenues in
the next 12-15 months. Further, the company’s well-established relationship with its premier client base of PSUs, such as, GAIL (India)
Limited, Mahanagar Gas Limited (MGL), Bharat Heavy Electricals Limited (BHEL), and others companies across India, and other countries
in the Asia-Pacific region, is expected to supplement the business expansion plans of ICL in the future.”
– Mordor Analysis

9.9 ATLAS COPCO AB – COMPANY OVERVIEW 125
Introduction: Atlas Copco has gone through several transformations since its establishment in 1873 as AB Atlas. The company
was initially established as a specialized manufacturer of railway equipment, but switched to the manufacturing of diesel
engines and pneumatic products at the beginning of the 20th century. Over the years, Atlas Copco AB has become a world-
class manufacturer and supplier of compressors, mining and construction equipment, vacuum solutions, electric and pneumatic
tools, generators, hybrid joining technologies, and other assembly systems. The company also offers after sales services for the
same, across the globe.
Founded in 1873
Atlas Copco is characterized as an organization with focused businesses, a global presence with direct sales and service
across 180 countries, a strong, stable, and growing service business, professional workforce, and an asset-light and flexible
Nacka,
manufacturing setup. The Atlas Copco group reported revenue of SEK 116.42 billion in 2017. HQ Sweden
Financial Overview Operations: North America,

South America, Europe, Asia-
Revenue in SEK billion, 2015-2017 Revenue Share (%), by Geography, 2017 Pacific, and Middle East &
Africa
7%
116.42 ~45, 000 Employees
8%
In SEK billion
32% Asia-Pacific
Europe Revenue (2017)

102.16 101.35 SEK 116.42 billion
24% North America
Middle East & Africa +46 (0)8 743 8000
2015 2016 2017 South America

29% www.atlascopcogroup.com
Source: Annual Report Source: Annual Report

9.9 ATLAS COPCO AB – BUSINESS OVERVIEW 126
• The compressor technique business segment provides compressed air solutions, gas and process compressors and
expanders, industrial compressors, air management systems, and air and gas treatment equipment. Principal product
Revenue Share (%), by
development and manufacturing units are located in the United States, Belgium, India, China, Germany, and Italy.
Segment, 2017
• The Vacuum Technique business segment covers vacuum products, valves and related products, and exhaust
management systems. The primary markets served are semiconductor and scientific, and a wide range of industrial
segments including food packaging, chemical process industries, and paper handling.
0.2%
• The Industrial Technique business segment provides industrial assembly solutions, industrial power tools and systems,
11.0%
quality assurance products, and software and service through a global network of sales and distribution channel.
33.0%
BUSINESS SEGMENTS
25.0%
ATLAS COPCO
14.0% 16.8%
COMPRESSOR TECHNIQUE INDUSTRIAL TECHNIQUE POWER TECHNIQUE
Compressor
MINING AND ROCK Vacuum
VACUUM TECHNIQUE
EXCAVATION TECHNIQUE
Industrial
• The mining and rock excavation technique business segment provides equipment for rock excavation and drilling activities, Mining and Rock Excavation
Power
along with associated after sale service through a global network.
Common group functions
• The Power Technique business segment provides power, air, and flow solutions through products such as pumps, mobile
Source: Annual Report
compressors, generators, and light towers, along with a number of complementary products. The segment also offers
specialty rental equipment and provides services through a dedicated, global network.

9.9 ATLAS COPCO AB – RELEVANT PRODUCTS AND SERVICES 127
Model 3 EHN4 GT Model 1 EHN2 GT

(FERTILIZER) (REFINERY)
Specification Data Specification Data
Gas C02, H2O, nitrogen, Gas

Hydrogen
Compressed hydrogen, methane Compressed
2000 Nm³/h / 1177 13,150 Nm3/h / 7740

Capacity Capacity
scfm scfm
Inlet 1 to 1.35 bar(a) / 15 to Inlet

24 bar / 350 psi
Pressure 20 psia Pressure
Discharge Discharge
29.5 bar(a) / 428 psia 57.2 bar / 830 psi
Pressure Pressure
Compression
3
Stage

9.9 ATLAS COPCO AB – RECENT DEVELOPMENTS 128
Mar 2018
Jan 2017
Jul 2017
Atlas Copco acquired Walker Filtration

Ltd, a UK-based manufacturer of
Atlas Copco announced the acquisition
equipment for the treatment of
of the business of hb Kompressoren Atlas Copco signed a two-year contract
compressed air, gas, and vacuum. The
Druckluft– und Industrietechnik GmbH, extension with GAP for the supply of a
company manufacturers high-efficiency
a German company that distributes and range of compressors solutions.
equipment for the treatment of
services industrial compressors and
compressed air, gas, and vacuum. It
related systems for the manufacturing
also has offices in Europe, United
and general industry.
States, Australia, and Japan.

9.9 ATLAS COPCO AB – ANALYST VIEW 129
Atlas Copco continues to be a world-leading provider of sustainable productivity solutions, and works with the vision of becoming and
remaining the best with its customers. The company is expected to increase market coverage and expand its presence in the targeted markets
of developing regions across the globe, which would further increase the demand for Atlas Copco’s wide range of products.
Atlas Copco is expected to actively add 3 core areas into its business line of services, i.e., innovation, digitization, and acquisition of specialized
services providers, which is expected to reap positive rewards for the company, during the forecast period. The years, 2017 and 2016, have
been significant for Atlas Copco, as the company aggressively diversified its global presence by acquiring local distributors and manufacturers
for the compressors. This is expected to benefit the company significantly during the forecast period.
“Atlas Copco AB’s recent business strategy of dividing the group into two companies – Atlas Copco, focused on industrial
customers, and Epiroc, focused on customers in the mining, infrastructure, and natural resources industries, is expected to
benefit the company significantly during the forecast period. The group may now be able to serve customers in every possible
end-use segment, and can explore newer niche market for business expansion.”
– Mordor Analysis

9.10 GARDNER DENVER HOLDINGS INC – COMPANY OVERVIEW 130
Introduction: Gardner Denver Holdings Inc. is one of the leading global service providers of the mission-critical flow control
and compression equipment, along with associated aftermarket parts, consumables, and services. Gardner Denver supports its
wide range of customers through its global geographic footprint of 37 principal manufacturing facilities, more than 30
complementary service and repair centers across six continents, and approximately 6,100 employees, worldwide. Its broad and
complete range of products include compressors, pumps, vacuums, and blowers.
The company operates its businesses across more than 175 countries, and holds a wide customer Founded in 1859
base, including industrial manufacturing, energy (with particular exposure to the North American upstream land-based market),
medical and laboratory sciences, transportation, food and beverage packaging, and chemical processing, among others.
Wisconsin,
HQ United States
The hydrogen compressor business is being operated by Gardner Holding, under the brand name of CompAir.
Financial Overview
Revenue Share (%), by Geography, 2017 South America, Europe, Asia-
Revenue in USD billion, 2015-2017
Pacific, and Middle East &
2.37 13% Africa
2.12 ~6,100 Employees
1.93
In USD billion
Americas
Revenue (2017)
51% USD 2.37 billion
EMEA
36%
+1-866-437-8677
Asia-Pacific
2015 2016 2017 www.gardnerdenver.com

Source: Annual Report Source: Annual Report

9.10 GARDNER DENVER HOLDINGS INC – BUSINESS OVERVIEW 131
• The products of Gardner Denver are sold under a collective market-leading brands
including Gardner Denver, Emco Wheaton, CompAir, Nash, Robuschi, Elmo Rietschle, and Thomas. These brands are
Revenue Share (%),
globally recognized across end-application segments and are widely acknowledged by customers for product reliability,
by Segment, 2017
product quality, efficiency, and superior customer service.
BUSINESS SEGMENT
9.7%
INDUSTRIAL GROUP ENERGY GROUP MEDICAL GROUP

47.6%
42.7%
• Compressors
• Wob-L Piston Pumps
• Blowers • Liquid Ring and
• Diaphragm Gas Pumps
• Vacuum Compressor
• Linear Pumps
• Centrifugal Blower and Industrials Energy Medical
• High Pressure
• Rotary Vane
Solution Exhausters
Pumps/Compressors Source: Annual Report
• Transport Solution • Loading System
• Peristaltic Pumps
• Industrial-Engineered • Frac and Mud Pumps
• Syringe Pumps
Solution • Fluid Ends

9.10 GARDNER DENVER HOLDINGS INC - RELEVANT PRODUCTS AND SERVICES 132
MODEL 5442
GAS HANDLING TECHNICAL

CAPABILITY CAPABILITY
• Water Inlet Temperature – 0 to 37 degree

• Nitrogen
calcius
• Argon
• Water Pressure - 0.9 to 5.1 barg
• Hydrogen
• Oil Capacity (crankcase + cooler system) -
• Methane
37.5 liters
• Carbon Dioxide
• Oil Carry Over After Final Separator - 8ppm
• Carbon Monoxide
by Weight
• Helium
• End Application - Glass and Ceramics,
• Nitrous Oxide
Chemical, Electronics, Transportation, Gas
• Neon
Companies, Nuclear and Thermal Power,
• Sulphur Hexafluoride
Meteorological, Metallurgical, and
• Methane
Pharmaceutical
• Gas Mixtures

9.10 GARDNER DENVER HOLDINGS INC - RECENT DEVELOPMENTS 133
Jun 2017
Aug 2016
Apr 2017
CompAir launched a completely new range of

Gardner Denver Holdings Inc. completed the
high-efficiency, oil-free, two-stage screw
acquisition of LeROI Compressors for a price
compressors to further enhance its successful
CompAir announced the launch of its latest of approximately USD 20 million, funded by
and award-winning D-Series. With the addition of
landmark range, Ultima. This water-cooled, oil-free cash in hand. Based in Sidney, Ohio, LeROI is
ten new models, the D-Series now covers a wide
compressor provides good performance and a leading North American manufacturer of gas
flow range from 8.9 to 51.8 m³/min. The new
efficiency. Part of the PureAir range, Ultima, is compression equipment and provide solutions
models (from 160 to 315kW), which also utilize a
available in models from 75 kW to 160 kW, and is for vapor recovery, biogas, and other process,
CompAir, designed and manufactured by two-
designed to be a good compressed air solution. and industrial applications. LeROI is expected
stage air end, offer oil-free and silicone-free air,
to be part of Gardner Denver's Industrials
by ISO 8573-1 Class 0.
Segment.

9.10 GARDNER DENVER HOLDINGS INC – ANALYST VIEW 134
The company has an established integrated network of direct sales representatives and independent distributors, and is strategically tailored to
meet the demand of the market. The company's large base has helped the significant stream of aftermarket revenues.
In 2017, the company's revenue grew by 21%, and the momentum continued throughout the last quarter of the year. The company executed
strategic merger and acquisition activities, and it is expected to maintain a similar growth, during the forecast period.
“Gardner Denver continues to acquire compression equipment business to provide access to new technologies and
geographies, thereby improving the aftermarket offerings. The company, along with its robust channel access, aftermarket
presence, and operational excellence, offers an attractive acquisition platform in the compression equipment sectors.”
– Mordor Analysis

135
10.1 Merger and Acquisition Analysis, Joint Ventures, Collaborations, and Agreements
10. COMPETITIVE LANDSCAPE
10.2 Strategies Adopted by Key Players

10.1 MERGER AND ACQUISITION ANALYSIS, JOINT VENTURES, COLLABORATIONS, AND AGREEMENTS 136
Year Development
Atlas Copco acquired Walker Filtration Ltd, the UK-based manufacturer of equipment for the treatment of compressed air, gas, and vacuum. The company
Mar 2018 manufacturers high-efficiency equipment for the treatment of compressed air, gas, and vacuum. It also has offices in Europe, United States, Australia, and
Japan.
Jan 2018 USA Compression Partners LP, a natural gas service provider, acquired the compression unit of Energy Transfer Partners LP's for around USD 1.8 billion.
Atlas Copco AB, a provider of world-class sustainable productivity solutions, completed the acquisition of the operating assets of C.H. Spencer & Company
Sep 2017
Co., a US-based distributor and service provider of industrial pumps, compressors, and related products.
Atlas Copco continues to strengthen its leading position of sustainable productivity with the acquisition of certain assets of Glauber Equipment Corporation;
Aug 2017 an Atlas Copco compressed air distributor and service provider. Glauber Equipment is headquartered in Lancaster, New York, United States, and is active in
Upstate and Western New York.
Jun 2017 Burckhardt Compression AG acquired Compressor Supplies & Machine Work Ltd (CSM), a Canadian company based in Edmonton and Drumheller, Alberta.
Atlas Copco, a leading provider of sustainable productivity solutions, completed the acquisition of Brazil-based manufacturer of compressors, Pressure
May 2017 Compressores Ltda. Pressure Compressores offers a broad range of screw compressors, piston compressors, and air treatment products, serving mainly
the Brazilian market but also some other South American countries.
Atlas Copco, a leading provider of sustainable productivity solutions, completed the acquisition of Orcan Basincli Hava Makinalari San Ve Tic Ltd, a
distributor and service provider of Atlas Copco industrial air compressors and related products in Turkey and other nearby areas. Orcan’s business is
Mar 2017
entirely focused on distribution and services of Atlas Copco's air treatment systems and compressors for use in areas such as manufacturing and general
industry.

10.1 MERGER AND ACQUISITION ANALYSIS, JOINT VENTURES, COLLABORATIONS, AND AGREEMENTS 137
Year Development
Colfax Corporation announced acquisition of Siemens Turbomachinery Equipment GmbH (STE) from Siemens AG. The acquisition will be integrated
Mar 2017 into Colfax’s Howden business platform, broadening Howden’s range of compression solutions and expanding its product offering into small steam
turbines. STE also diversifies Howden’s served end markets and increases its presence in applications with attractive growth potential.
Atlas Copco completed the acquisition of the business of HB Kompressoren Druckluft-und Industrietechnik GmbH, a Germany-based distributor and
Jan 2017
service provider of industrial air compressors and related systems. The company would now operate as a subsidiary of Atlas Copco.
Atlas Copco, a leading provider of sustainable productivity solutions, completed the acquisition of Air Power of Nebraska. Based in Omaha, Nebraska,
Dec 2017 the company manufactures, sells, installs, and services compressed air products and related systems to customers in the surrounding region, including
Nebraska, Iowa and South Dakota in the United States.
The Sauer Compressors holding company (J.P. Sauer & Sohn Beteiligungsgesellschaft GmbH), as part of its further strategic development program,
completed the 100% take over of HAUG Kompressoren AG. HAUG Kompressoren AG specializes in the design and production of oil-free piston
Jul 2016
compressors in the range of 0.5 to 110 kW and employs around 40 people at the St. Gallen site. Like Sauer Compressors, HAUG is a family-owned
company operating worldwide.

10.2 STRATEGIES ADOPTED BY KEY PLAYERS 138
Atlas Copco
Atlas Copco, a Swedish company, is in the business of industrial tools and equipment manufacturing. The company has an experience of more than 140
years, and it caters to a global consumer base through its diverse sales and services distribution network. The company has been involved in strategic
merger and acquisition activities, acquiring companies involved in the supply chain of hydrogen compressors. The company has acquired various
equipment manufacturers, and operating assets of distributor and service providers for hydrogen compressors, across the globe. The company's strategy
of integrating into the supply chain has given it a global presence, global reach spanning in about 180 countries, including own operations in more than 90
countries, manufacturing units in Belgium, Sweden, Germany, the United States, India, and China, among others present globally.
Indian Compressors Ltd
Indian Compressors Ltd manufactures compressors and has global sales and service network with manufacturing unit present in both Italy and India. The
company's consumer base is primarily from oil & gas sector, followed by steel plants and chemical plants. The company is expected to continue to benefit
from the extensive experience of its promoters and are in similar business lines and have strong operational and financial linkages. The company
targets to achieve a revenue growth of more than 25% in FY2018 and has established a strong clientele with PSUs, such as Gas (India) Limits
(GAIL), Bharat Heavy Electricals Limited (BHEL), Mahanagar Gas Limited (MGL) and many others, which results in repeat orders. As of 2018, the
company has orders worth INR 0.5 billion.

139
11. FUTURE OF THE MARKET

11. FUTURE OF THE MARKET 140
• The world produces and consumes more than 80 Mt of hydrogen annually in

• Overall, the annual demand for hydrogen may increase tremendously in the
a wide range of industrial processes with captive production, accounting for
next few years. This increase in hydrogen demand is due to an increase in
more than 60 million metric tons. Globally, the demand for hydrogen is
uses from feedstock to the industry, residential, transportation, and power
dominated by ammonia (more than 50%), methanol and oil refining
sectors, as well as a global rollout from priority markets to the rest of the
industries. The other hydrogen consumer industries include the electronics,
world that is expected to start beyond 2030.
metals, and food industries.
• With the increasing demand for hydrogen across the world for various
• Hydrogen’s unique properties make it a compelling enabler for energy
application and government plans for energy transition, the demand for
transition, with benefits for both the energy system and end-use applications,
hydrogen compressors is expected to rise at a relatively high rate.
opening enormous opportunities for hydrogen compressor manufacturers.
• The use of hydrogen as an energy carrier is beginning to accelerate; in recent • Often, compressors operate best when long duty cycles are imposed.
years, fuel cell sales have increased by more than 30% a year, reaching Frequent starting and stopping creates stress on the mechanical components
60,000 units last year, with over 300 MW of capacity. With hydrogen, the that could lead to early failure. This creates a challenge when pairing a
energy system is expected to enjoy an additional energy carrier with compressor with a variable production source, such as renewables. Also,
attractive properties. It can be flexibly produced, stored for long periods at low there are hydrogen delivery challenges at refueling stations and stationary
cost, and transported across regions. It can combine sectors, transforming power sites. Research is being carried out to increase the reliability and
electricity into fuel for generating heat and vice versa. Its flexibility would reduce the cost of hydrogen compression and to diminish the cost and
make higher renewable shares in the power system cost efficient, where they footprint of hydrogen storage. In order to witness the transition, these
would otherwise not be. challenges need to be addressed on priority.

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1

GLOBAL HYDROGEN COMPRESSOR MARKET

1. EXECUTIVE SUMMARY 6.4 Threat of Substitutes

2. RESEARCH APPROACH AND METHODOLOGY 6.5 Intensity of Competitive Rivalry

3. MARKET OVERVIEW 7. MARKET SEGMENTATION AND ANALYSIS (Overview, Market Size,

6.2 Bargaining Power of Consumers

6.3 Threat of New Entrants

Report Global Hydrogen Compressor Market

8. REGIONAL MARKET ANALYSIS (Overview, Market Size, and Demand

8.1.1 United States 8.3.7 Rest of Europe

8.1.2 Canada 8.4 Middle East & Africa

8.2.5 South Korea 8.5.1 Brazil

8.2.6 Rest of Asia-Pacific 8.5.2 Argentina

8.3 Europe 8.5.3 Rest of South America

Report Global Hydrogen Compressor Market

9.3 Burckhardt Compression AG

9.4 Hydro-Pac Inc.

9.5 Haug Kompressoren AG

9.7 Howden Group

9.8 Indian Compressors Ltd

9.9 Atlas Copco

9.10 Gardner Denver

10. COMPETITIVE LANDSCAPE

10.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

10.2 Strategies Adopted by Key Players

11. FUTURE OF THE MARKET

*Subject to availability on the public domain

Report Global Hydrogen Compressor Market

Report Global Hydrogen Compressor Market

Revenue (In USD billion)

Most of the produced hydrogen is being used as feedstock for industrial

Report Global Hydrogen Compressor Market

Hydrogen Compressor Market: Revenue Share (%), by

compressors, thereby overcoming the challenges faced by the market

Report Global Hydrogen Compressor Market

2.1 Study Deliverables

2. RESEARCH METHODOLOGY 2.2 Scope of the Market

2.3 Research Phases

Report Global Hydrogen Compressor Market

AIMS AND OBJECTIVES OF THE STUDY

GEOGRAPHICAL SCOPE –GLOBAL SEGMENTS COVERED

PROFILES OF KEY PLAYERS

VALUE CHAIN ANALYSIS

SEGMENTED BY TECHNOLOGY, TYPE, END-USER

Report Global Hydrogen Compressor Market

Global Hydrogen Compressor Market

By Technology By Type By End-user Industry By Geography

Single-stage Oil-based Chemical North America

Multistage Oil-free Oil & Gas Asia-Pacific

Middle East & Africa

Report Global Hydrogen Compressor Market

• Company Annual Reports • Insights from Data

SECONDARY DISCUSSION PRIMARY DATA ECONOMETRIC EXPERT REPORT

• Revalidation of Numbers from

Report Global Hydrogen Compressor Market

3.2 Market Size and Demand Forecast until 2023

3.4 Government Policies and Regulations

Report Global Hydrogen Compressor Market

Report Global Hydrogen Compressor Market

Report Global Hydrogen Compressor Market

Report Global Hydrogen Compressor Market

EMERGENCE OF HYDROGEN FUEL-CELL TECHNOLOGY HYDROGEN MOBITY PROJECT

Report Global Hydrogen Compressor Market

Report Global Hydrogen Compressor Market