German technology group Bosch has called on European and German policymakers to do “much more” to accelerate the growth of the continent’s hydrogen sector to provide a “counterweight” to the rapid pace of development in the US and other regions.

“First, we have to step up the pace of hydrogen production in the EU,” said Bosch chairman Stefan Hartung. “Second, global supply chains have to be set up, and third, hydrogen has to be used in all sectors of the economy.” He also stressed the importance of quickly setting up infrastructure for distributing hydrogen in Europe.

“Bosch knows its way around hydrogen, and Bosch is growing with hydrogen” Hartung, Bosch

Frustration within Europe that the region has lost its early leadership in the clean hydrogen sector to the US has grown in recent months as developers eye attractive tax credits offered under the Inflation Reduction Act.

However, the US Department of Energy recently signalled its own disappointment with the pace of project development, launching a $1b programme aimed primarily at stimulating demand in an attempt to unlock investment.

Hartung’s rallying call to European policymakers came as Bosch unveiled plans to step up its investment in in the development and manufacture of hydrogen technology, as it looks to tap the “huge business opportunity” offered by the sector.

The company has earmarked €2.5b ($2.8b) for investment in hydrogen technologies between 2021 and 2026, an increase of around €1b compared with its previous plan for 2021–24. Its total capex across all parts of the business in 2022 was just under €5b. By 2030, the company aims to generate hydrogen technology sales of about €5b. Total group revenues in 2022 were about €88b.

Big players

Bosch is among a group of large engineering and technology companies, including Siemens Energy and Cummins, that are leveraging their scale, balance sheets and historical presence across the entire hydrogen supply chain to gain a grip on the sector as it enters a critical growth phase.

“Bosch knows its way around hydrogen, and Bosch is growing with hydrogen,” said Hartung.

Analysts expect a period of consolidation, especially in the electrolyser manufacturing sector, where multiple smaller players are trying to scale up production to meet an expected surge in demand as green hydrogen projects start to materialise over the next few years.

Bosch is keen to stress its ability to scale up production. “Bosch is one of the very few companies capable of mass-producing technology as complex as fuel-cell stacks,” said Markus Heyn, member of the Bosch management board and chairman of Bosch Mobility. “We do not just have the required systems expertise, but also the capability of quickly scaling up new developments to mass production.”

The German company is betting heavily on the mobility sector. It has begun volume production of fuel-cell modules at its Feuerbach plant in the Stuttgart region. US truckmaker Nikola will serve as the pilot customer with its Class 8 hydrogen fuel-cell electric truck, which is scheduled to enter the North American market in the third quarter of 2023.

Bosch is also working on hydrogen engine technology, with an emphasis long-haul trucking applications.

In the electrolyser sector, Bosch says it is on track to start volume production of proton-exchange-membrane systems in 2025.

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Author: Stuart Penson