Hydrogen Electrolyzer Industry Projected to Grow with CAGR of 23.05%

Electrolysis is a promising option for carbon-free hydrogen production from renewable and nuclear sources. Electrolysis is the process of using electricity to split water into hydrogen and oxygen. This reaction takes place in a unit called an electrolyser. Electrolysers range in size from small appliance size devices suitable for small-scale decentralized hydrogen production to large centralized production plants that can be directly connected to renewable or other non-greenhouse forms of hydrogen. Various. power generation.

Today, 96% of hydrogen produced worldwide is from the use of fossil fuels (natural gas, oil, etc.). Water electrolysis, on the other hand, accounts for only 4%. In fact, the cost of producing hydrogen using fossil fuels is lower than the electrolysis of water because current electrolysers are very expensive and the cost of electricity is also high. However, fossil fuel-based hydrogen production, or gray hydrogen, suffers from low purity and high greenhouse gas production. To address the intensive use and depletion of fossil fuels to meet hydrogen demand, electrolysis of water from renewable energy sources (wind turbines, solar power, etc.) represents an attractive and promising alternative. is regarded. Renewable energy sources combined with water electrolysis are coming under development for environmentally friendly hydrogen production pathways to replace current hydrogen production based on polluting fuels. Water electrolysis can produce hydrogen with high gas purity, but is associated with high costs (electrolyser, electricity) and low energy efficiency due to high energy consumption. For this reason, energy efficiency, power costs, and water electrolysis systems remain major concerns in the development of large-scale water electrolysis processes. Water electrolysis uses electricity from the grid or renewable sources to split pure water into hydrogen and oxygen.

Global market demand declined slightly in 2020 due to COVID-19, so forecasting growth rates in 2021 should be especially cautious. In fact, the actual growth rate in 2021, especially in China, has exceeded our expectations. This, coupled with the Chinese government’s support for the hydrogen energy industry, has led to the rapid growth of China’s hydrogen energy industry, as China’s capital market strongly supports the hydrogen energy industry. For example, Suzhou Jinli’s shipments have doubled, all of which are large-scale water electrolyzers in the 1-5 MW class. In general, there will be a large number of photovoltaic hydrogen production projects in China in 2021, and with large-scale investments and announcements in clean hydrogen production projects and P2G projects, global water electrolysis equipment shipments will surge in 2021. prize. At the same time, many countries and regions have announced investment plans for the hydrogen energy industry in 2021, further adjusting the forecast data.

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