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More than 550 GW of installed electrolyser capacity is needed globally by 2030 in order to meet the Paris agreement targets (IEA). Further, 100 GW of that capacity needs to be in operation in Europe by 2030 to meet the EU targets (The Net-Zero Industry Act). Clean hydrogen market penetration is growing fast – at a pace of 50% since 2021 –, with a larger share of projects now reaching FID (IEA). Since 2021, installed capacity has grown nine-fold on a global scale. However, in Europe, the installed electrolysers only grew by a factor of three, which shows that a lot of the growth in the hydrogen sector is coming from other regions of the world, particularly China and North America.
So how could that be addressed?
According to the Draghi report, hydrogen is essential to Europe’s industrial strategy. The report emphasizes large-scale investment in green hydrogen production, especially through renewable-powered electrolysis, which is critical to reducing Europe’s dependence on fossil fuels and enhancing energy resilience (EU competitiveness: Looking ahead, Draghi). Increased hydrogen production is imperative to supporting decarbonization across transportation, industry, and power sectors, aiming to maintain Europe’s global competitiveness in clean energy technologies.
The value chain for hydrogen production does not start with the production of hydrogen, but rather with the required components, and the manufacturing of electrolyser equipment needed to produce green hydrogen. Today, China is home to 60% of global electrolyser manufacturing capacity (IEA). Through the Net Zero Industry Act, the EU has a target of 40% of key equipment for the green transition to be manufactured in Europe (The Net-Zero Industry Act). This will be a vital driver to building a robust green society in Europe and increasing European competitiveness.
The numbers from IEA, together with the EU’s targets, show how important a successful European hydrogen bank auction (opening on the 3rd of December) is for the region. Building a robust hydrogen value chain in Europe is not only important for driving down greenhouse gas emissions here, but also imperative to ensure European energy security and preserving European competence within clean energy technologies.
At our facilities at Høvik, Norway, Hystar is building a 4.5 GW automated factory. We have the unique ability to utilize stack components from the fuel cell industry, which enables rapid scaling of stack manufacturing, as these suppliers are already producing at high volumes. This also contributes to building a stronger European hydrogen value chain.
Hystar has awarded the German industrial engineering company thyssenKrupp automation engineering with the Front-End Engineering Design (FEED) contract for the supply of our automated electrolyser manufacturing line.
Hystar’s GW factory has been awarded an EU innovation fund grant of up to 26 MEUR to help make this happen. Electrolysers from our factory will contribute with as much as 5.5 million tons of hydrogen production by 2036—an output approximately equal to the current yearly hydrogen demand of Germany, the Netherlands, Poland, Spain, Italy, the United Kingdom, and France combined. The set up of the factory is also designed so that it can easily be replicated for additional facilities across Europe and globally.
Once operational, the Hystar GW factory will be the electrolyser manufacturing line with the highest output, as well as utilizing the lowest area footprint and investment needed, all with the purpose to make green hydrogen as competitive as possible.
Hystar’s patented PEM electrolyser technology has been optimized for scalability, and all products use the same mass–produced stacks. Reliable and high-performing electrolysers makes green hydrogen more affordable for our customers across the globe.
Hystar’s containerized electrolyser solutions delivered to the European market are made with European integration partners. This contributes to building a strong European value chain, all the way from the manufacturing of equipment to the delivery of projects.
The world needs more renewables and is deploying wind and PV plants at a rapid scale. Flexible PEM electrolysers will be an important part of making a more robust energy system through matching electricity demand and supply. Hystar’s products pair very well with renewables with a large operating range and fast response time. Our HyPilot project is a good example of this, where we delivered a 1.5 MW containerized solution to Equinor’s K-lab, which is located inside the Kårstø gas processing plant. At K-lab, this unit will be run with different operational profiles, including variable renewable power profiles (e.g. wind and solar).
The European hydrogen market is scaling, however, more needs to be done in order to meet the Paris agreement targets. The European Hydrogen Bank and other national policy incentives are imperative to accelerate the deployment of hydrogen projects and reduce emissions in hard-to-abate sectors. At Hystar, we’re proud to contribute with our Technology for a Greener Future™.
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