Green hydrogen making rapid strides but electrolyser innovation will continue through the 2020s

Tax credits of up to US$3/kg provided under the Inflation Reduction Act (IRA) will accelerate US producers' pursuit of the US$1/kg mark ahead of schedule. Global market prices currently range between US$5.76/kg in the UK and US$2.19/kg in Sweden.

Selene Law, Senior Associate at Cleantech Group, said: “Incumbents like Cummins, Plug Power, and thyssenkrupp will dominate the electrolyser market for at least the next five years, initially making the most progress towards the US$1/kg price threshold, but innovators will disrupt the market toward the end of the decade with more efficient models that don’t rely on critical minerals.”

Green hydrogen has many established and emerging end-use applications. Smaller-sized plants serve the mobility markets, and slightly bigger ones have emerged for transport hubs, including distance trucking, aviation, and maritime shipping. Industrial-scale units of up to 100 MW capacity, capable of serving the steel, cement, and chemical industries, are set to roll into manufacturing as early as 2024.

Alkaline electrolysis (AEL) and proton exchange membrane (PEM) are the dominant, commercially mature technologies, but have long-standing challenges. Alkaline electrolysers have slow ramp up and taper down times, making them difficult to pair with intermittent renewables. Proton exchange membrane electrolysers have high efficiency and flexible ramping ability but are dependent on critical materials, especially platinum group metals.

Cleantech Group Analyst, Alex Crutchfield, said: “Emerging electrolyser technologies, such as anion exchange membrane (AEM) or solid oxide, have been capturing the latest wave of investment in seed and Series A funding. They will likely challenge incumbents in the second half of the decade due to efficiency improvements and reduced dependency on rare metals.”

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/06092023/green-hydrogen-making-rapid-strides-but-electrolyser-innovation-will-continue-through-the-2020s/