Renewable hydrogen is rapidly emerging as a key enabling technology with significant potential to decarbonize various sectors, in
line with global efforts to meet net zero emission targets. Renewable hydrogen is hydrogen produced using renewable energy
sources via electrolysis, a process that splits water molecules into hydrogen and oxygen. This hydrogen can be stored, transported,
or used on-site as a clean and flexible fuel for a wide range of applications. Thus, its demand and usage are witnessing significant
growth. The increasing hydrogen projects all over the world is creating high growth opportunities for the electrolyzer market. In
2022, more than 112 million tonnes of new low-carbon hydrogen capacity was announced, mainly in the US, Denmark, Egypt, Canada
and Portugal. Hydrogen strategies are being developed and implemented worldwide, for instance, the Chinese government has laid
out a medium- and long-term development plan for hydrogen (2021-2035), with the goals of bringing 50,000 fuel cell electric vehicles
on the road by 2025; producing green hydrogen using renewables to reach 100,000 to 200,000 tonnes annually by 2025; and using
clean hydrogen in energy storage, electricity generation and industry.
Further, in 2021, India announced a National Hydrogen Energy
Mission to develop a roadmap for using hydrogen as an energy source; the aims are to create a global hub for the manufacturing
of hydrogen technologies; to facilitate demand creation in industries such as fertilizers, steel and petrochemicals; and to
demonstrate the use of hydrogen in transport applications. In 2020, the European Commission adopted “hydrogen strategy for a climate-neutral Europe”. The strategy aims to support the
deployment of clean hydrogen in various sectors, including industry, transport, and power generation, as part of EU efforts to achieve
climate neutrality by 2050. Also, Germany's National Hydrogen Strategy intends to expand the role of hydrogen to decrease national
dependence on coal. The government plans to invest USD 7.5 billion to achieve a hydrogen production capacity of 5 GW by 2030
and another 5 GW during 2035-2040, allowing exemption from the green power surcharge (EEG levy). Further, in 2022-2023, Germany
signed a landmark agreement with Denmark to build a 1 GW electrolysis plant in Denmark that will produce green hydrogen using
offshore wind power, at a total project cost of USD 32.6 billion.
Spain released a strategy in 2020 that provides a vision for
developing a favourable environment for the supply and demand of renewable hydrogen. Key milestones of the strategy are
commissioning 300-600 MW of electrolysers by 2024 and 4 GW by 2030, and reducing 4.6 million tonnes of CO2 emissions, through
mobilising USD 9.6 billion of investments. In February 2022, four grant programmes totaling USD 267 million were deployed to
address innovation in the hydrogen value chain. This included USD 108 million for large electrolysers, USD 86 million for piloting
fuel cell electric vehicles, USD 43 million for industrial and experimental research, and USD 32 million for capacity building. The US
released its draft National Clean Hydrogen Strategy Roadmap in late 2022. The plan sets out three key priorities: targeting strategic,
high-impact uses of hydrogen; reducing the cost of clean hydrogen to USD 1 per kilogram by 2031; and deploying at least four
regional clean hydrogen hubs through an unprecedented USD 7 billion in funding. Australia released its green hydrogen strategy in
2019, laying out a comprehensive plan to position the country as a major global player in the hydrogen industry by 2030.
The strategy
aims to develop a clean, innovative, safe and competitive hydrogen industry that delivers significant economic, social, and
environmental benefits, with a set of ambitious targets. The Australian government is providing USD 526 million towards the
establishment of eight hydrogen hubs through the Regional Hydrogen Hubs programme and other commitments, including nine
feasibility studies to support potential future hydrogen hubs. Brazil published a resolution in 2022 establishing the National
Hydrogen Program (PNH2), which aims to promote the development of a competitive hydrogen market in the country. The
programme seeks to encourage the production, distribution and use of hydrogen as a clean energy source, with a focus on
renewable hydrogen. Chile's national strategy was released in 2020 and has three main strategic pillars: commissioning 5 GW of
electrolysis by 2025, ensuring the most competitively priced green hydrogen in the world by 2030 and becoming among the world's
top exporter of green hydrogen by 2040. Thus, the increasing green hydrogen projects worldwide are playing a vital role in creating
substantial growth opportunities for electrolyzer market.
The energy landscape globally is rapidly shifting toward renewable sources such as wind, solar, and hydropower, significantly driven
by the propelling need for cleaner and sustainable energy solutions. However, one of the significant challenges faced by renewable
energy sector is its intermittent nature as sunlight and wind are not always available, and this factor creates high need for efficient
energy storage systems. Energy storage, particularly through technologies such as batteries and hydrogen storage, is essential for
ensuring a reliable and consistent energy supply. Electrolyzers, that helps in generating hydrogen through water electrolysis using
electricity, are emerging as a pivotal technology for energy storage solutions. Hydrogen is increasingly valued as an ideal solution
for large-scale energy storage. Electrolyzers use electricity to obtain green hydrogen and oxygen from water. This hydrogen can
then be stored for later use, either by converting it back into electr
