Electrolyzers

Much attention has been paid to hydrogen (H2) and its potential role in combating climate change.  As a result, H2 produced thru electrolysis of water via electricity obtained from REN sources (green H2: GH2) is gaining momentum around the world.

  

Electrolysis efficiency

  

Producing H2 via water electrolysis involves inherent thermodynamic and system energy losses.  Modern commercial electrolyzers (Alkaline and PEM) operate at energetic efficiencies btw 60% and 70% (LHV), Moreover, due to hydrogen's extremely low volumetric energy density, high-pressure compression (ranging from 350 bar for heavy-duty transport up to 700 bar for light-duty vehicles) or liquefaction (down to -253°C) is required to store sufficient quantities onboard for mobility applications.

  

Brazil Green Hydrogen Edge

  

Since large part of the total cost of GH2 production refers to the cost of the electricity needed for the electrolysis process, Brazil takes the lead for having a predominantly renewable electricity mix (84,8% of the electricity mix, ANEEL-Apr/2026), especially due to the great potential for hydroelectric generation (50% of the electricity mix, ANEEL-Apr/2026), but also due to the increasing share of non-conventional renewable energy sources, represented by wind & solar PV plants.

  

Electrolyzer installations & manufacturers

  

Global electrolyzer manufacturing capacity has expanded rapidly, reaching over 30 GW annually, with alkaline systems (ALK) retaining their market dominance over Proton Exchange Membrane (PEM) technologies due to lower stack costs.  However, while early industry forecasts anticipated over 200 GW of operational electrolyzers by 2030, recent BNEF assessments indicate a more measured adoption pace, constrained by delayed Final Investment Decisions (FIDs) and policy bottlenecks.

  

A significant cost divide continues to define the global market.  Chinese original OEMs, led by LONGi Hydrogen, PERIC, Sungrow, and SinoHy, benefit from scale economies and integrated supply chains, offering alkaline electrolyzer stacks at roughly 20% to 30% of the CAPEX of Western counterparts.    

In response, Western mfrs, including Thyssenkrupp Nucera, Plug Power, ITM Power, and Siemens Energy, are shifting focus toward high-pressure operation, system durability, and compliance with stringent Western subsidies and regulatory standards (EU's Green Hydrogen Delegated Acts / U.S. IRA 45V reqs), where efficiency and operational reliability are prioritized over initial hardware cost.

  

Figure 1 compares different electrolysis technologies, while Figure 2 illustrates BNEF’s top 10 global electrolyzer manufacturers by expected annual manufacturing capacity at the end of 2023.  Figure 3 shows other global leading electrolyzer manufacturers in 2022 according to the Cicenergigune website.  Figure 4 shows technology readiness levels (TRL) of technologies for H2 end-uses by sector.