According to IDTechX technology research firm, the electrolysis industry for green hydrogen production would exceed $120 billion by 2033.
IDTechX reported to the Energy Research Unit that government and commercial companies are investing heavily in electrolysis technologies to produce green hydrogen.
The analysis expected that low-carbon hydrogen would drive global hydrogen demand in all economic sectors as energy security and decarbonization efforts increase.
Renewable electricity powers an electrolyzer that converts water into hydrogen and oxygen, removing carbon from hard-to-reduce areas. According to the International Energy Agency, industrial and oil refining industries consume almost 99% of worldwide hydrogen consumption, which reached 94 million tons in 2021.
Decarbonization will boost the electrolyzer market dramatically. Refining and ammonia production will continue to employ green hydrogen in the medium term. Green hydrogen catalyzes decarbonization in steel, methanol, heavy vehicles, shipping, aviation, and more.
Local hydrogen production reduces natural gas and coal usage and replaces them in the steel, methanol, construction, and chemical industries, the paper said.
Hydrogen production is crucial to delivering clean fuel and decarbonizing the global economy due to the Russian-Ukrainian crisis, natural gas price volatility, and supply disruptions. IDTechX research forecasts that green hydrogen will account for less than 1% of global hydrogen generation in 2022, emphasizing the need to boost the electrolysis sector.
Alkaline, polymer film, and solid oxide electrolyzers produce green hydrogen, according to the paper. Industrial usage of alkaline electrolysis dominates the market. It has modest initial expenses and a lengthy lifespan.
According to US market research and analytics firm Polaris Market Research, the method uses a liquid alkaline solution of potassium or sodium hydroxide because it lasts longer than a polymer membrane electrolyzer.
Polymeric membrane electrolysis, on the other hand, has a higher energy density and faster response time than alkaline technology, making it appropriate for renewable electricity production. The latest solid oxide electrolysis systems work at high temperatures exceeding 700 ° C and are efficient yet expensive.
The report projected this current technology’s great efficiency to lower green hydrogen production costs. As electrolysis industry competitors compete, IDTechX expects electrolyser manufacturing capacity to rise dramatically over the next five years.
According to the research group, European companies are expanding their electrolyzer production capacities, with US and Chinese corporations set to invest heavily and Indians and Australians hoping to enter the market.
Few solid oxide electrolyzer producers compete with alkaline and polymeric membrane manufacturers.
The analysis found that the three-type electrolysis market must increase to satisfy clean hydrogen production goals.