The global pipeline for hydrogen electrolyser projects has seen a remarkable surge, growing by a staggering 55.2 GW in just six months. This data comes from the latest Q2 2024 European Hydrogen Market Report (HyMaR) published by Aurora Energy Research, a reputable power market analytics provider.
The report reveals that the global electrolyser database now stands at approximately 1.2 TW, indicating a notable 4% increase in the last six months. This surge equates to a substantial 5.5 PWh of electricity. While most projects are still in their early phases, making up 90% of the pipeline, the total operational capacity of existing projects is nearing 2 GW, with a significant growth of 1,133 MW.
The scale of these projects is equally impressive, with around 130-140 GW of more advanced projects currently being developed. Europe is leading the way in project development, accounting for 32% of the capacity share, closely followed by Oceania at 21%. In terms of Final Investment Decisions (FIDs), the report estimates that approximately 15 GW of projects are at this stage, representing about 12% of the global operational or under-construction capacity.
Germany, with its large market size and advanced policy framework, takes the lead in electrolyser project development in Europe. The country boasts around 9 GW in advanced stages. The Netherlands and the UK closely follow, making up the top three most attractive markets in Europe, driven by similar factors. Although Europe remains a hotspot for hydrogen electrolyser projects, global momentum is also gaining traction, as highlighted by Aurora Energy Research.
Looking to the future, the report predicts a significant role for electrolysers in European hydrogen production. By 2030, electrolysers are expected to account for over 50% of the total capacity mix, growing to 80% by 2040. However, there are concerns about meeting these targets. The report indicates that by 2030, installed electrolyser capacity is projected to reach 35 GW, falling short of the targets set by the EC’s Net Zero Industry Act and REpowerEU by 76%. This shortfall can be attributed to high electrolysers’ CAPEX, rising cost of capital, and uncertainty in offtake agreements, which in turn delay project investment decisions.
In terms of hydrogen production costs, the report highlights significant variation across European countries. Costs range from 4-20 €/kg, with the Nordics and Spain proving to be cost-effective producers. Spain, in particular, benefits from baseload production, which helps offset intermittent cost increases by 2-3 times.
As Dilara Caglayan, Research Lead at Aurora Energy Research, notes, while there has been positive progress driven by clearer policy frameworks and support schemes, further cooperation is essential for achieving national targets and the successful rollout of a future hydrogen market.
For those interested in delving deeper into this subject, the full Q2 2024 European Hydrogen Market Report (HyMaR) is now available.
FAQ Section:
1. What is the global pipeline for hydrogen electrolyser projects?
The global pipeline for hydrogen electrolyser projects refers to the total number of projects globally that are being developed to produce hydrogen through electrolysis.
2. How much has the global pipeline for hydrogen electrolyser projects grown in the last six months?
According to the Q2 2024 European Hydrogen Market Report, the global pipeline for hydrogen electrolyser projects has grown by a staggering 55.2 GW in just six months.
3. What is the total capacity of the global electrolyser database?
The global electrolyser database currently stands at approximately 1.2 TW, indicating a notable 4% increase in the last six months.
4. How much electricity does the recent surge in electrolyser projects equate to?
The recent surge in electrolyser projects equates to a substantial 5.5 PWh of electricity.
5. What percentage of the pipeline are projects in their early phases?
Most projects in the pipeline are still in their early phases, making up 90% of the total.
6. How much is the total operational capacity of existing electrolyser projects?
The total operational capacity of existing electrolyser projects is nearing 2 GW, with a significant growth of 1,133 MW.
7. Which region is leading in project development?
Europe is leading in project development, accounting for 32% of the capacity share, closely followed by Oceania at 21%.
8. Which country takes the lead in electrolyser project development in Europe?
Germany takes the lead in electrolyser project development in Europe, with around 9 GW in advanced stages.
9. What is the prediction for the role of electrolysers in European hydrogen production by 2040?
The report predicts that electrolysers will account for 80% of the total capacity mix in European hydrogen production by 2040.
10. What are some of the challenges in meeting the targets for electrolyser capacity?
The challenges in meeting the targets for electrolyser capacity include high CAPEX (Capital Expenditure) for electrolysers, rising cost of capital, and uncertainty in offtake agreements, which delay project investment decisions.
Key Terms:
– Electrolyser: A device that uses electricity to produce hydrogen by splitting water molecules into hydrogen and oxygen.
– Capacity Share: The percentage of total capacity accounted for by a particular region or country.
– Final Investment Decisions (FIDs): The decision taken by investors to commit funds to a particular project.
– CAPEX: Capital Expenditure, referring to the initial cost of acquiring and setting up assets such as equipment and facilities.
Related Links:
– Aurora Energy Research
