Electrolyzer Market Developments

A rapidly expanding hydrogen economy will spur demand for specialized equipment to produce, store, transport and utilize clean hydrogen. In an article published by Utility Dive magazine earlier this month, Wood Mackensiehydrogen analyst, Bridget van Dorsten, noted “[the] number of announced hydrogen projects suddenly jumped at the height of Covid-19 in 2020, and then almost doubled again in 2021… Exponential growth seems set to continue — announcements from the first quarter of 2022 are already equivalent to 25% of the total project pipeline.” In the near term, such exponential growth is especially relevant for a piece of equipment called an “electrolyzer” that harvests hydrogen from water and is the heart of most clean hydrogen production facilities.  BloombergNEF forecasts that electrolyzer deliveries will grow 4-5x in megawatt terms from 2021 to 2022 while another top Wall Street firm is tracking plans for 80-120GW of installed electrolyzer capacity by 2030 up from 0.3GW currently. The availability of hydrogen from these projects will, in turn, spur demand for other specialized hydrogen equipment ranging from tanks to fueling equipment to fuel cell systems to turbines and boilers.