Water Electrolysis Market Analysis

In-depth Analysis of Water Electrolysis Market Industry Landscape

Electrolysis is a method that uses renewable sources to split water into hydrogen and oxygen. It's a simple way to make hydrogen—by passing an electric current through water, you can separate its parts. This process is used in many industries like chemicals, petroleum, glass, refineries, automobiles, pharmaceuticals, metals & mining, and more.

The market for water electrolysis is growing because it's used more in different industries, there's a rising demand for clean energy, and it's a great way to use renewable sources through power-to-gas facilities. However, there are challenges like finding substitutes for water electrolysis and dealing with increased costs of water electrolyzers.

Proton Exchange Membrane (PEM) Water Electrolysis: PEM water electrolysis uses a thin proton-conducting membrane as a solid polymer electrolyte instead of liquid electrolytes used in alkaline water electrolysis. While not many companies make these because they cost more and have a shorter lifetime compared to alkaline water electrolysis, the solid polymer membrane makes the hydrogen really pure, usually above 99.99%, without needing extra equipment.

Alkaline Water Electrolysis: Alkaline water electrolysis is an advanced technology developed in 1800. It's well-known and widely used, especially for large-scale hydrogen production. Alkaline electrolyzers, which are mainly used for big hydrogen production, are now focused on becoming more efficient by using high temperatures and pressures.

Solid Oxide Electrolyte (SOE): SOE electrolysis is the third main type, alongside alkaline and PEM. It's the least developed, still in the research & development stage. SOE uses high temperatures (700–1000 °C) and has the potential to enhance efficiency. However, the challenge lies in quick degradation of cell components at high temperatures, keeping it in the research stage. The gas leaving the cathode in SOE electrolysis is a mix of hydrogen and steam, needing processing and resulting in much higher costs compared to alkaline and PEM electrolysis. Although the U.S. Department of Energy aims for an investment cost of $170/kW for electrolyzers, current models consider values up to $1000/kW because large-scale production of SOEs is still not fully developed. Reports suggest it might take at least ten years for SOEs to become widely available.