The global hydrogen project pipeline saw less than 1mn t/yr of new planned capacity announced in Q4 2022—a fall of more than 90pc from Q1, according to data from consultancy Wood Mackenzie. Total capacity reached 71.4mn t/yr, 3mn t/yr lower than new projects announced in 2021.

“[Last year] was marked by the energy crisis and a slew of policy announcements from the EU, the US and the UK supporting hydrogen production. Despite this, announcements slowed through the year as developers shifted their focus to de-risking the existing project pipeline,” says Flor Lucia De la Cruz, senior research analyst for hydrogen and emerging technologies at Woodmac.

83GW – New electrolyser manufacturing capacity announced in 2022

However, while project announcements have slowed, electrolyser manufacturing capacity is gaining momentum. 83GW of manufacturing capacity was announced in 2022, more than half of which came in the final quarter. Total announced manufacturing capacity has reached 106GW—catching up to the 360GW pipeline of green hydrogen projects.

“A year ago, electrolyser manufacturing capacity looked like a bottleneck. OEMs have responded so swiftly that there is a risk of significant manufacturing overcapacity by 2025, particularly if production projects fail to progress,” De la Cruz says.

“However, OEMs are ramping up manufacturing output slower than nameplate capacity given the additional time required to develop labour and skills as well as securing machinery and materials.”

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Author: Polly Martin