Global Electrolyzer Market - Growth, Trends, and Forecast (Outlook to 2028)

Global Electrolyzer Market - Growth, Trends, and Forecast (Outlook to 2028)

Drivers:

Growing support from governments in the form of strategies, policies initiatives, investments, and deployment targets.

Rising adoption of hydrogen as a clean fuel due to its benefits.

Growing adoption of fuel cell electric vehicles (FCEVs) and hydrogen infrastructure.

Strong hydrogen demand growth from industries.

Rapidly growing low-carbon hydrogen production projects.

Introduction:

Natural gas is the primary fuel for hydrogen production in the ammonia and methanol industries and refineries, with steam methane reformation dominating.

However, due to fossil fuel dominance, hydrogen generation accounted for over 900 Mt of direct CO2 emissions in 2020. (2.5 % of global CO2 emissions in energy and industry). Therefore, emissions from hydrogen production must be reduced for a clean energy transition.

Low-carbon hydrogen can be made from various sources, including water and power via electrolysis, fossil fuels via carbon capture, utilization and storage (CCUS), and bioenergy via biomass gasification.

The primary reason for producing hydrogen using an electrolyzer is to solve the intermittence issue caused by renewable energy sources, as hydrogen can be stored for longer durations when compared to any other energy storage method.

However, they account for very small shares of global production; water electrolysis made up ~0.03% as electrolyzer production is still in its early stages.

Electrolyzer:

Water electrolysis is an electrochemical process that splits water (H2O) into hydrogen (H2) and oxygen (O2) using electricity (O2). This process takes place in a device called electrolyzer.

Electrolyzer capacity, which is required to create hydrogen from electricity, has doubled in the last five years, reaching just over 300 MW by mid-2021. Around 350 projects are now in the works, with the potential to increase global capacity in future. Another 40 projects, totalling more than 35 GW of capacity, are still in the planning stages.

Types:

There are four main electrolyzer technologies:

Alkaline.

Proton exchange membrane (PEM).

Solid oxide electrolysis cells (SOECs).

Anion exchange membranes (AEMs) (SOCEs and AEMs are Emerging Technologies).

In 2020, alkaline electrolyzers dominated with 61% installed capacity, and PEMs had a 31% share. The remaining capacity is made up of SOECs and an unidentified electrolyzer technology (installed capacity of 0.8 MW).

Applications: Power generation, transportation fuel, refinery, petrochemical, building heating and power, food and drug, glass industry, steel industry, medical, semi-conductor, methanol, fertilizers, ammonia, and more.

Working of an Electrolyzer

An electrolyzer comprises a conductive electrode stack separated by a membrane that is subjected to a high voltage and current.

This creates an electric current in the water, causing it to disintegrate into its constituents: oxygen and hydrogen.

The whole electrolyzer system includes pumps, power electronics, compressors, a gas separator, and other auxiliary components such as storage tanks.

In some situations, the oxygen produced in parallel is discharged into the atmosphere or kept for future use as a medicinal or industrial gas.

Hydrogen is compressed or liquefied and stored to be used in industry or hydrogen fuel cells.

Alkaline Electrolyzer

An alkaline electrolyzer consists of liquid electrolyte solutions, such as potassium hydroxide or sodium hydroxide and water. An anode, a cathode, and a membrane produce hydrogen in a cell.

The cells are typically connected in series to produce more hydrogen and oxygen simultaneously. Hydroxide ions flow through the electrolyte from the cathode to the anode of each cell when current is provided to the electrolysis cell stack, forming hydrogen and oxygen gas bubbles on the cathode and anode sides of the electrolyzer, respectively.

Alkaline electrolysis is a mature commercial technology that has been used for hydrogen production in the fertilizer and chlorine industries since the 1920s. Alkaline electrolyzers have minimal capital expenses compared to other electrolyzer technologies since they do not require valuable materials.

Restraints:

The progress of battery technology is more advanced than that of electrolysers

Alternate hydrogen production pathways (steam methane reforming with CCUS, fossil fuels with CCUS)

High level of competition

Recent developments:

In Sep 2021, Siemens Energy and Toray partnered to develop and demonstrate PEM water electrolysis in Japan based on new membrane technology.

In Feb 2021, Siemens Energy and Air Liquide signed a Memorandum of Understanding (MOU) to develop a large-scale electrolyzer project in France with 200 megawatts (MW) capacity for sustainable hydrogen production.

In Apr 2021, Siemens Energy and Messer Group entered into a cooperation agreement to work on green hydrogen projects in the 5 to 50 Megawatt (MW) range for industrial and mobility applications.

In May 2021, Siemens Energy collaborated with Dubai Electricity and Water Authority (DEWA) and Expo 2020 Dubai to inaugurate the first industrial-scale, solar-driven green hydrogen facility in the Middle East and North Africa.

In May 2021, Cummins Inc. and Iberdrola partnered on large-scale hydrogen production projects in Spain and Portugal.

In Aug 2021, Nel ASA entered a development partnership with SFC Energy AG to develop the world’s first integrated electrolyzer and hydrogen fuel cell system for decentralized energy generation and storage.

In Oct 2021, Plug Power Inc. and Fortescue Future Industries Pty Ltd (FFI) signed a letter of intent for a 50-50 joint venture to build a 2 GW factory to produce large-scale PEM electrolyzers in Queensland, Australia.

In Sep 2021, plug power to build the largest green hydrogen production facility on the west coast in Fresno County, California.

In July 2021, Hyundai Motor Company, Kia Corporation, and Next Hydrogen signed a memorandum of understanding MOU to develop an advanced alkaline water electrolysis system.

In Sep 2021, Green Hydrogen Systems signed a grant agreement with CINEA to support the development of the HyProvide X-Series electrolyzer as part of a future 100 MW Power-to-X platform.

Some of the government supportive policies towards electrolyzers:

Japan 2021 - Green Innovation Fund - METI funds hydrogen supply chain

Colombia 2021 - Hydrogen roadmap

Hungary 2021 - National Hydrogen Strategy (NHS)

Poland 2021 - National Recovery Plan / B. Green energy and energy efficiency / B2. & B3. Renewable energy

Spain 2020 - Renewable Hydrogen Strategy

Portugal 2020- Hydrogen Strategy

Chile 2020 - National Strategy for Green Hydrogen

Australia 2020 - National Hydrogen Strategy

- National Hydrogen Strategy - Renewable Hydrogen Deployment Funding Round

Opportunities:

Integration of electrolyzer into offshore wind turbines to produce green hydrogen.

Green hydrogen in decarbonising industries, i.e., ammonia, steel, chemical, heavy-duty road transport, shipping, and aviation.

Latin America, Middle East, Australia is expected to deploy large amounts of capacity for export.

Growth potential in Australia, Canada, Chile, European Union (Czech Republic, France, Germany, Netherlands, Norway, Portugal, Spain), Russia, United Kingdom Japan, Korea for hydrogen production using electrolyzers.

PEM electrolyser systems are more attractive than alkaline electrolysers in dense urban or industrial areas.

Growing need for green hydrogen near demand centres in China, Europe, Japan, and North America in future.

Regional Analysis:

China:

China is the second largest region for global electrolyzer installed capacity. All major manufacturers have announced intentions to expand their manufacturing capacity in response to expected domestic market growth.

China has also implemented a large quantity of renewable energy generation capacity in recent years, particularly in locations with significant potential but low energy consumption.

The resulting electricity grid congestion has forced some regional governments to limit the amount of power loaded into transmission grids.

Electrolysis can reduce curtailment and store energy for local consumption or transport to areas with limited renewable energy resources and high energy demands.

Hydrogen projects data in China (2022-2035)

Blackridge Research's global electrolyzer market report provides insights into the current global and regional Global market demand scenario and its outlook.

This study offers a detailed analysis of various factors instrumental in affecting the global electrolyzer market's growth. The study also comprehensively analyses the market based on the technology (Alkaline Electrolyzer, Proton Exchange Membrane (PEM) Electrolyzer, Solid Oxide Electrolysis Cell (SOEC), and Anion exchange membranes (AEMs)) and on geography (North America, Europe, Asia-Pacific, and the Rest of the world).

This report also includes the latest market trends, drivers and restraints, present and future opportunities, new projects, the global impact of Covid-19 on the global electrolyzer market, and significant developments.



Further, the report will also provide global electrolyzer market size, demand forecast, and key competitors in the market.
This product will be delivered within 5-7 business days.