This article provides an overview of the global green hydrogen market inthe second quarter (Q2) of 2023, focusing on the electrolysis sector. Theanalysis is derived from the updated Delphi Green Hydrogen market intelligence dashboardand focuses on OEMs and startups, as well as strategic investors in theelectrolyzer manufacturing sector.
The second quarter was driven by developments in Asia. Japanese majorsare strongly involved in the global development of the hydrogen sector. Korean SK group, which is already invested into the American electrolyzer & fuel cell OEMs Plug & Bloom energy, announced in May it would join a 4.5 bn. USD green hydrogen project in Newfoundland, Canada.
After announcing a pilot project utilizing Toyota's new proton exchangemembrane PEM-EL, automotive supplier Denso announced the test of their proprietary SOEC at the end of June. This marks the entry of just another giant Japanese corporation into the electrolyzer Original Equipment Manufacturer (OEM) market. While India also shows some dynamic developments, the accelerating global expansion of Chinese electrolyzer OEMs was the most important development within the global electrolyzer and green hydrogen market. The top 3 leading Chinese OEMS achieved bookings of several hundred MW during the course of the first half of 2023.
Chinese Players Going International
Chinese engineering, procurement, and construction (EPC) firms areplaying a significant role in the global green hydrogen market. These firms are known for their expertise in large-scale project development and construction.During Q2 2023, Chinese EPCs have been actively developing projects in Northern Africa and Brazil, indicating their expanding international reach. Chinese EPCs will most often opt for Chinese electrolyzers, as the cost level is significantly below those of western competitors, and the EPCs typically have existing long-term business relations with many Chinese companies that manufacture electrolyzers. Chinese electrolyzer OEMs companies have also expanded their presence inthe global green hydrogen market during Q2 2023.
Envision, a leading clean energy company, announced its colossal plans at the “World Hydrogen NorthAmerica” in Houston. Envision, plans to established a significant electrolyzer manufacturing capacity of 40 GW/y by 2030, and claims to offerturnkey-hydrogen & synfuel plants with proprietary technology. Envision is known for its expertise in wind energy has a strong track record in developing renewable energy projects worldwide. The company's pursuit of gigafactory plans in Spain, even in theabsence of immediate funding, demonstrates their long-term commitment to thegreen hydrogen sector.
Longi, a prominent solar technology company, has also made strides in the European market. Known for their expertise in high-efficiency solar modules,Longi has a strong presence in the global photovoltaic industry. The collaboration with a partner in Spain further strengthens their foothold in Europe and highlights their efforts to expand into the green hydrogenmarket. Sungrow, a Chinese solar technology company, is also establishing an European market development teamfor its electrolyzers.
Sungrow has established a research institute in Germany, carrying out research on the interaction of PV inverter, windpower converter, battery energy storage and green hydrogen, and cooperatingwith local universities and academic institutions.
Weak Project Pipeline Beyond China
While Chinese companies continue todrive significant developments in the green hydrogen market, the global project pipeline outside of China experienced limited progress in Q2 2023. This highlights the need for increased efforts to stimulate project developmentand investment in regions beyond China. Collaboration and knowledge-sharing between countries and industry stakeholders are crucial to overcoming thesechallenges and accelerating the growth of the global green hydrogen market.
Early indications from Q3 show, that some large orders were announced globally,prior to an expected summer break. The global dynamic in electrolyzer projectawards is clearly accelerating since June. The American IRA is not yet impactingthe global electrolyzer project awards. Due to long project development timelines, some major FIDs & project awardsmight be announced towards the end of the year, although major market impactsare not expected prior to 2024.
Developments in India, new market entrants and competitors offset Adani Scandal
India has shown significant interest and activity in the green hydrogen sector during Q2 2023. While Adani, a major conglomerate, will not make substantial investments in the green hydrogen business until 2025/26, other companies have made notable progress. Adani group was heavily hit by fraud allegations of American short seller Hindenburg. As a result, some investment plans, including the green hydrogen business, have been put on hold.
Three new Indian electrolyzer OEMs have entered the market, namely Jakson Green, Avaada Group, and Newtrace. These companies are poised to contribute to the development of India's green hydrogen infrastructure, leveraging theirexpertise in electrolysis technology and renewable energy solutions.
On the 28th of June, Avaada Group, a leading integrated energy platform, has announced the successful closure of $1.3 billion funding round,marking a historic moment for the green energy industry in Asia and India's renewable energy sector. The funding will be used to bolster Avaada's green hydrogen, green methanol, green ammonia, solar manufacturing and renewable power generation ventures, as part of India's commitment to a sustainable future. While the majority of the funds will not be allocated to electrolyzermanufacturing, the setup of an electrolyzer manufacturing plant is one of the communicated goals for the group.
Ohmium: The company with headquarters in the US is a key player in the Indian green hydrogenmarket, has sustained strong momentum during Q2 2023. The company could raise 250 MUSD in a Series C fundraise and added some experienced professionals to its senior management team. Furthermore, Ohmium has announced robust market activities, particularly in India, reflecting their commitment to driving the adoption of green hydrogen technologies in the region. Ohmium's efforts align with India's ambitious renewable energy goals and the growing importance of green hydrogen in the country's energy transition.
McPhy's manufacturing agreement with L&T (a major Indian EPC) further highlights India's focus on green hydrogen. The partnership aims to establish a local manufacturing facility for McPhy's electrolyzers, supporting the growthof the green hydrogen ecosystem in India and fostering technological advancements in the country.
The second quarter for leading OECD OEMs
Several companies have emerged as leaders in the green hydrogen and electrolysis sector. Their activities during Q2 2023 demonstrate their commitment to innovation and market expansion:
Belgian industrial John Cockerill and Technip Energies formed a Joint Venture to offer turnkey green hydrogen projects, based solely on John Cockerill’s pressurized alkaline electrolyzers. Rely will be headquartered in Belgium and Technip will own the majority (60%) of the newly formed companies stock. Rely will offer end-to-end solutions, from pre-Final Investment Decision services including technical & financial advisory through to proprietary products, project execution and operation and maintenance.
John Cockerill also entered into a strategic partnership with ADNOC for electrolyzer manufacturing in the United Arab Emirates. The collaboration with ADNOC strengthens their position in the market and underscores their commitment to providing advanced electrolyzer solutions.
Plug, a vertically integrated green hydrogen company and leading provider of hydrogen fuel cell & electrolyzer systems, has made significant market progress in Q2 2023. The company has achieved multiple sales of its containerized 5 MW electrolyzer solution, showcasing the growing demand for their technology. Additionally, Plug Power has announced plans to develop three green hydrogen projects in Finland, totaling 2.2 GW, further solidifying their position as a key player in the global green hydrogen market. In early July Plug announced thesale of 100 MW electrolyzers for an unknown energy project in Europe.
Nucera: A notable player in the green hydrogen sector, has announced its intention to go public through an Initial Public Offering (IPO) on the Frankfurt Stock Exchange. The company aims to raise between 500-600 millionEUR, which will provide them with the necessary capital to expand their operations and invest in green hydrogen projects. This strategic move reflects Nucera's ambition to position themselves as a significant player in the market. The IPO was completed in early July, valuating Nucera at 2.5 bn. EUR. Nucera is a joint venture between German industrial giant ThyssenKrupp and Industrie De Nora, the globally leading electrode manufacturer for alkaline electrolyzers.
Siemens Energy: The huge problems with Siemens Gamesa might negatively affect Siemens Energies investments in the developments of its green hydrogen business.
Cummins Accelera: Cummins, a global leader in power solutions, has implemented hydrogen electrolyzer production at its existing manufacturing plant in Minnesota. This manufacturing facility allows Cummins to produce high-quality electrolyzers at scale, contributing to the growing availability of electrolysis technology for green hydrogen production. Furthermore, strong governmental backing is expected for domestic US electrolyzer production. In August, Cummins revealed in its earnings call for the second quarter, that the backlog for electrolyzers has reached 500 MUSD. Cummins electrolyzer business was established through the acquisition of the Canadian company Hydrogenics. Cummins acquired 81% of the Hydrogenics shares in 2019. The remaining 19% were acquired by Cummins in June 2023. Air Liquide has sold its 19% stake in the fuel cell and hydrogen production technologies provider Hydrogenics Corporation to Cummins. According to HydrogenInsight, the transaction accounted for 156.5 million EUR, valuing Hydrogenics at 823,7 MEUR. Asahi Kasei launches a 100 Million USD investment vehiclet o invest in early-stage startups that aim to solve issues inenvironmental fields such as hydrogen, energy storage, carbon management, and bio-based chemicals over the 5-year period up to fiscal 2027.
FFI: has presented the first prototype of their in-house PEMEL technology during Q2 2023. With the prototype ready for mass manufacturing in Gladstone, FFI demonstrates their commitment to advancing proton exchange membrane electrolysis technology and scaling up its production. This development aligns with the industry's goal of driving down costs and increasing the efficiency of green hydrogen production. In its Annual report, Fortescue unveiled, that none of the businesses within FFI generates any revenue yet. The underlying EBITDA for the FY 2022 amounted to -394 MUSD, compared to -104 MUSD in 2021. Sunfire, a leading provider of high-temperature electrolysis technology, has announced a collaboration with IONOMR to advance the development of anion exchange membrane (AEM) technology. This collaboration demonstrates Sunfire's dedication to continuous innovation and their efforts to explore new electrolysis technologies for more efficient and cost-effective green hydrogen production.
Publicly listed Norwegian HydrogenPro, raised new capital through the placement of new shares to secure the ramp up of its North American electrolyzer manufacturing capacities. To boost its European market activities, the company announced a partnership with ANDRITZ for turnkey hydrogen plants in Europe. ANDRITZ itself, plans to become a major global player in the green hydrogen market. While the company starts of its green hydrogen market activities as a systems integrator, company representatives mentioned a plan, to develop proprietary electrolyzer gigafactories in the future. On the 14th of June, HydrogenPro opened a regional office in Duisburg, Germany. During the second quarter, the startup got certified for delivering to Japan. HydrogenPro shipped a 5.5. MW electrolyzer for Mitsubishi’s Takasago hydrogen park.
German automotive supplier Bosch, which plans to ramp up massmanufacturing of PEMEL stacks announced the launch of a new product line: Thecompany plans to launch a water treatment system for electrolysis in 2024.
Startup update
In the rapidly growing electrolyzer sector, several startups have made significant advancements in the second quarter of 2023. Here are some key highlights:
Hystar has achieved a major milestone by securing its first 5 MW deal with Polenergia, a notable energy company. Additionally, the company is collaborating with Johnson Matthey to further enhance its technology and market presence. Genvia is making strides in the field of electrolyzers, as it inaugurated a pilot production line for its technology. However, its commercial pilot is not expected until 2025, indicating the ongoing development and testing phase. Hysata has strengthened its advisory council by adding Clairfe O'Neil, the former UK minister for climate change. This strategic addition is likely to provide valuable insights and guidance to the company's global operations. Cipher Neutron has partnered with ionomr to jointly develop a 250 kW AEM electrolyzer. This collaboration aims to enhance the efficiency and performance of their electrolysis technology. Endua has announced a successful pre-seed funding round and unveiled its “Hydrogen Power Bank”. This funding boost will likely accelerate its research and development efforts in the hydrogen storage and distribution sector. Battolyser has entered the market by accepting orders for its electrolyzers, with deliveries expected to begin in 2024. This move indicates that the company is gearing up for commercial production and sales. H2U Technologies has achieved a significant milestone by finalizing its first commercial-scale (200 kW) demonstrator for a non-iridium PEM electrolyzer. The company plans to ship these demonstrator units to external partners, indicating progress toward commercialization. Stargate Hydrogen announced the signing of a strategic collaboration and framework agreement with Rockfin. The companies also presented their pilot demonstrator: a 10kW stack by Stargate Hydrogen's Stellar series integrated into Rockfin's innovative system, called "mini-Green Box"
Conclusion The second quarter of 2023 witnessed notable developments in the global green hydrogen market, particularly in the electrolysis sector. Chinese companies have expanded their international presence, while leaders in the field, startups, and tier 2 electrolyzer manufacturers have made significant advancements in technology, project development, and market expansion. India's growing focus on green hydrogen highlights the country's commitment to sustainable energy solutions. These developments lay the foundation for a more robust and interconnected global green hydrogen market, requiring continued collaboration and investment to drive its long-term growth and facilitate the transition to a sustainable energy future. Delphi Data Labs has increased its continuous market monitoring of the global electrolyzer sector to over 220 companies worldwide. Apart from its the core feature, the competitive benchmarking & market monitoring tool, the Delphi hydrogen dashboard includes a wide range of additional features, ranging from market forecasts, to a hydrogen project database and a detailed value chain library covering thousands of companies in the hydrogen value chain as well as the various positions they occupy in this value chain. Furthermore, more than 125 technology companies with blue- and turquoise hydrogen production technologies are added to Delphi’s Hydrogen market monitoring dashboard over the course of this summer. In principle, the new analytics section covers all hydrogen technologies apart from water-splitting. This includes but is not limited to grey & blue hydrogen technologies (ATR, SMR, Partial Oxidation), turquoise hydrogen technologies, such as methane plasmalysis (a type of pyrolysis) various waste to value technologies, including staged reforming, microwave pyrolysis, gasification, fast pyrolysis, and others. Furthermore, the waste to value sector is not limited to hydrogen production, but also included other advanced recycling technologies, which focus on other output products, such as pyrolysis oil. Initially, over 125 companies will be covered.
