One of the cornerstones to attaining the green transition is so-called green hydrogen. Particularly in industries where electricity is difficult, impractical, or prohibitively expensive.
Even while there are currently factories producing this future fuel, it is still rather costly. One of the causes is the cost of electrolyzers, which are devices that use electricity to split water molecules into hydrogen and oxygen. According to research by the International Renewable Energy Agency, this might alter shortly, changing the overall picture (IRENA).
“Electrolytic technology innovations are critical for the smart electrification of renewable energy end-use industries to enhance flexibility and efficiency while lowering prices,” according to the IRENA research.
According to the report, implementing the scenario of limiting global warming to 1.5 degrees Celsius will necessitate annual investments of $ 133 billion in pure hydrogen between 2021 and 2030, including electrolyzers, raw materials, and infrastructure for green and blue hydrogen transmission and storage. These yearly investments will have to increase to $ 176 billion over the following two decades, from 2031 to 2050.
According to a report published by the American investment firm Jefferies in November of last year, yearly electrolyzer production would reach no more than 47 GW by 2030 and will be between 30 and 40 GW in earlier years. As a result, in order to fulfill the massive demand for electrolyzers that is expected in the future, nations throughout the world must set targets to expand electrolyzer capacity, support supply chains, and lower investment costs for the manufacturing and construction of these facilities. According to IRENA, all of this necessitates the provision of targeted funds through grant programs and loans.
