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Tom Clark
22 hours ago
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Underground Hydrogen Storage Market: Balancing Grids with Cavities

The underground hydrogen storage market is set for robust growth as hydrogen continues to gain traction as a cornerstone of global decarbonization efforts.

The global underground hydrogen storage market demand was estimated at 2,780.67 MCM in 2024 and is projected to reach 6,249.05 MCM by 2033, growing at a CAGR of 9.2% from 2025 to 2033. The market is expected to expand steadily over the forecast period, driven by supportive government policies, rising net-zero emission targets, and an increasing focus on hydrogen as a clean energy carrier across industrial, transportation, and power generation sectors.

Growing investments in green hydrogen infrastructure and the accelerating adoption of renewable energy sources are fueling demand for safe, scalable hydrogen storage solutions. Underground hydrogen storage involves the containment of hydrogen gas in large geological formations such as salt caverns, depleted oil and gas fields, and aquifers, enabling efficient balancing of hydrogen supply and demand in large-scale hydrogen energy systems. This approach supports long-duration energy storage, which is critical for stabilizing hydrogen supply chains and enabling fully decarbonized energy grids.

Furthermore, advancements in subsurface engineering technologies and the repurposing of existing natural gas storage infrastructure are strengthening the commercial viability of underground hydrogen storage solutions.

Key Market Trends & Insights

  • The Europe underground hydrogen storage market held the largest global volume share of 58.52% in 2024.
  • The U.S. underground hydrogen storage industry is expected to grow significantly over the forecast period.
  • By storage type, the salt caverns segment dominated the market, accounting for 97.66% of the total market share in 2024.

Download a free sample PDF of the Underground Hydrogen Storage Market Intelligence Study by Grand View Research.

Market Size & Forecast

  • 2024 Market Demand: 2,780.67 MCM
  • 2033 Projected Market Demand: 6,249.05 MCM
  • CAGR (2025–2033): 9.2%
  • Europe: Largest market in 2024
  • Asia Pacific: Fastest-growing regional market

Competitive Landscape

The underground hydrogen storage market features several established global players actively investing in large-scale storage infrastructure, particularly in salt caverns and depleted gas fields. These initiatives are aimed at supporting the global transition toward low-carbon and hydrogen-based energy systems.

Some of the key players operating in the underground hydrogen storage industry include Air Liquide; Air Products and Chemicals, Inc.; Engie; Linde plc; and Texas Brine Company, LLC.

Key Underground Hydrogen Storage Companies

The following companies collectively hold a significant market share and play a pivotal role in shaping industry trends through innovation, strategic partnerships, and project development:

  • Air Liquide
  • Air Products and Chemicals, Inc.
  • Engie
  • Linde plc
  • Texas Brine Company, LLC
  • Uniper SE
  • WSP

Recent Developments

  • March 2025: Air Liquide announced a partnership with a European energy consortium to develop one of the largest underground hydrogen storage facilities in Europe. The project, located in a salt cavern in northern Germany, aims to secure renewable hydrogen supply for industrial users and mobility applications while supporting regional energy independence goals. This development underscores Air Liquide’s strategic focus on expanding hydrogen infrastructure and advancing long-duration, low-carbon storage solutions across Europe.

Explore Horizon Databook – the world’s most comprehensive market intelligence platform by Grand View Research.

Conclusion

The underground hydrogen storage market is set for robust growth as hydrogen continues to gain traction as a cornerstone of global decarbonization efforts. Strong policy support, rising green hydrogen production capacity, and increasing demand for long-duration energy storage solutions will continue to drive market expansion. With Europe leading adoption and Asia Pacific emerging as the fastest-growing region, ongoing investments and technological advancements will be critical in enabling resilient, large-scale hydrogen energy systems worldwide.