Navigating the Global Green Hydrogen Trade

Challenges and Opportunities for Exporting Regions

The global #greenhydrogen industry is experiencing remarkable #growth, with regions worldwide seeking to increase their #production and becomes significant exporters of this #sustainableenergy source. However, a recent report by Rystad Energy sheds light on the #challenges faced by green hydrogen #exporters, particularly in regions such as South America, Africa, and Australia. These regions, known for their abundant #wind and #solar resources, will need to import substantial quantities of #electrolysers, the #crucial technology for electrolysis to produce green hydrogen from water. Let's explore the #implications of this reliance on technology #imports and gain #insights into the current #landscape of electrolyser manufacturing and its #geographical distribution.

Technology Imports and Reliance:

• Regions aiming to #boost green hydrogen production require #largescale deployment of electrolysers.
• Electrolyser #manufacturers primarily establish their factories in regions where green hydrogen is heavily #subsidized, like the United States, European Union, India, and China.
• Regions expected to lead in green hydrogen #production, such as South America, Africa, and Australia, will heavily depend on #importing electrolysers to unlock their production #potential.

The Capital Cost Challenge:

• Importing electrolysers poses significant #challenges, primarily related to #transport across long #distances, often via ocean freight.
• The transportation process increases the #capital costs associated with constructing large-scale green hydrogen #projects, potentially impacting their #profitability.
• Shipping hundreds or thousands of electrolysers can lead to increased project #expenses, particularly with the projected surge in green hydrogen #demand.

Current Electrolyser Manufacturing Landscape:

• China, traditionally #dominant in the electrolyser #market, is expected to see its market share #decline.
• By the beginning of the next #decade, China and #India combined are projected to account for 37% of #global electrolyser production.
• Asia as a whole is anticipated to be a major #exporter of electrolyser technology, with factory capacity surpassing #domestic demand by 30 GW by 2030.
• The United States and the European Union are rapidly expanding their electrolyser manufacturing #capacities to meet the #growingdemand for green hydrogen projects.
• Additionally, electrolyser factories are being established in #Australia, #Morocco, and the #MiddleEast, contributing to the global market.

Planning for the Future:

• Careful #planning is essential to avoid #imbalances between electrolyser production capacity and demand.
• #Investment in new factories relies on the realization of #announced green hydrogen projects.
• The transition from bespoke, #handmade orders to #largescale automated production aims to reduce costs through economies of scale but may result in a time lag between #gigafactory completion and actual demand.
• Paying close #attention to local #sourcing and strategic manufacturing #hubs is crucial to overcome challenges and ensure the successful #development of the global green hydrogen market.

The global green hydrogen trade holds immense #potential for growth, with regions worldwide #aspiring to become major exporters of this #cleanenergy source. However, the #dependence on technology #imports, particularly electrolysers, presents challenges for regions lacking a robust domestic #manufacturing base. Transportation costs and potential supply-demand imbalances may impact the capital costs and profitability of large-scale green hydrogen projects. It is crucial to focus on #localsourcing and strategic manufacturing hubs to #overcome these challenges and ensure the #successful development of the global green hydrogen market.

Data courtacy: Rystad Energy - Green Hydrogen