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IDTechEx releases new report on green hydrogen production

Published by , Editorial Assistant
Energy Global,

The hydrogen market is always associated with fuel cells and vehicles, but this is actually a tiny portion of the overall hydrogen market. In fact, to use hydrogen in fuel cells and industrial applications, it is necessary to produce hydrogen cost-effectively.

Figure 1: IDTechEx forecast for the electrolyser market, showing capacity installed and market size, for the period 2021-2031.

The strong potential of hydrogen is driven by the fact that it is impossible to electrify some of the most polluting sectors, including the steel, ammonia, and glass industries. In these sectors, hydrogen will be produced from renewable energy employing electrolyser systems. Although still in its early stage, the electrolyser market found strong support from government institutions, particularly from the EU parliament. The European ‘Green Deal’ has highlighted the importance hydrogen will play in the future economy.

Following the announcement of the ‘Green Deal’, many countries in Europe announced their hydrogen strategies to promote the adoption, and the 2x40 GW project is pushing the adoption of electrolyser systems with €20 billion investments.

Therefore, IDTechEx investigated this fast-growing market, showing the outcome of their research in the new report “Green Hydrogen Production: Electrolyzer Markets 2021-2031”.

The report addresses the different technologies involved, market players, and most important end-user applications, showing the next adopters of electrolysers.

With a fast-growing market with a CAGR of 48% between 2021 and 2031, IDTechEx forecasted a multi-billion market in 2031.

As highlighted in the IDTechEx report, many projects have been announced in Europe, although it is not the only market where hydrogen is being adopted. Australia, Chile, Japan, South Korea, and Canada are some of the countries deeply involved in hydrogen development.

Although each country presents a specific roadmap for hydrogen adoption, the industries which will benefit from the adoption of hydrogen will all be the same. Nowadays, hydrogen is mostly used for ammonia production and refinery products, with the remaining 20% of the market addressed by other sectors such as energy storage, automotive, and methanol production.

To understand how the hydrogen market will evolve, IDTechEx investigated the end-users industries adopting hydrogen. The analysis performed shows the reader where and how hydrogen will be used in the following decade, together with the different technologies involved in it.

The hydrogen production is currently largely dominated by the reforming of methane, which converts methane in hydrogen by the so-called Steam Methane Reforming (SMR). SMR technology produces low-cost hydrogen, although with considerable emissions (approximately 10 kg CO2/kg H2). Therefore, to decarbonise these sectors, a strong hydrogen economy is required, with electrolyser systems providing green and high purity hydrogen. Due to the higher cost of the green hydrogen produced by the electrolysers, strong financial support to this industry is required.

Alkaline (AWE), PEM (PEMEL), and solid oxide (SOEL) electrolysers are the future of green hydrogen production, if and only if renewable electricity is employed. While the alkaline systems have dominated the scene for the last hundred years, over the last two decades, the PEMEL and SOEL systems started populating the hydrogen market with innovative and more efficient technologies to produce hydrogen.

The IDTechEx ‘Green Hydrogen Production: Electrolyzer Markets 2021-2031’ report investigates each of the three technologies, showing the technical characteristics, highlighting the advantages and disadvantages of each system, and related implications in the final market adoption.



For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Spring 2021 issue

The Spring issue of Energy Global features a varied spectrum of in-depth technical articles detailing recent projects, future projections, and technological advancements in the renewables sector, from companies including GlobalData, Atlas Copco, Watlow, QED Naval, TRACTO, AB Energy, and more.

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