Hydrogen electrolyzer: Providing the fuel of our energy future

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  Quantumrun Foresight
• January 31, 2022

Insight summary

Hydrogen electrolyzers, devices that use electricity to split water into hydrogen and oxygen, are becoming key players in the energy sector. By converting excess renewable energy into hydrogen, these electrolyzers address the challenge of storing and transporting energy, and they also have the potential to significantly reduce greenhouse gas emissions. The wider implications of this technology include new job opportunities, reduced dependence on fossil fuels, economic growth, and changes in consumer behavior.

Hydrogen electrolyzer context

A hydrogen electrolyzer is a device that utilizes electricity to split water into hydrogen and oxygen through a system known as electrolysis. The process generates hydrogen gas, with the remaining oxygen either released into the environment or collected and stored to supply other industrial operations or medicinal gases. Since hydrogen is an energy carrier, it may be utilized to power any hydrogen fuel cell electric application, such as trucks, trains, buses, or data centers, and it can be stored as a compressed gas or liquefied.

An electrolyzer, in its most basic form, consists of an anode (positive charge), a cathode (negative charge), and a membrane. Pumps, vents, storage tanks, a power source, a separator, and other components are also included in the system. Water electrolysis is an electrochemical process that occurs within cell stacks. Electricity is delivered across the proton exchange membrane (PEM) to the anode and cathode, causing water to split into its component molecules. 

Electrolyzers are classified into three types: proton exchange membrane (PEM), alkaline, and solid oxide. Depending on the electrolyte material, these various electrolyzers operate in slightly different ways. Both alkaline and PEM electrolyzers can produce on-site and on-demand hydrogen, pressurized hydrogen, and carbon-free hydrogen. The development of cheaper and more efficient electrolyzers will enable the growth of green hydrogen, transforming it into the most cost-effective clean hydrogen supply option for many greenfield applications.

Disruptive impact

As renewable energy sources like wind and solar power become more prevalent, the challenge of storing and transporting this energy becomes increasingly critical. Hydrogen electrolyzers offer a solution to this issue. By converting excess renewable energy into hydrogen, this energy can be stored for later use or transported to areas where it's needed, effectively addressing the intermittency problem associated with renewable energy sources.

Moreover, the use of hydrogen electrolyzers could lead to a significant reduction in greenhouse gas emissions. Currently, a large portion of hydrogen is produced from fossil fuels, a process that releases carbon dioxide into the atmosphere. However, if the electricity used in the electrolysis process is sourced from renewable energy, the resulting hydrogen is virtually carbon-free. This "green hydrogen" could replace the use of fossil fuels in various sectors, including transportation and industry.

Finally, the widespread adoption of hydrogen electrolyzers could stimulate economic growth and job creation. The development and manufacture of electrolyzers, as well as the infrastructure needed to store and distribute hydrogen, could provide a significant boost to the economy. Furthermore, the use of hydrogen as an energy carrier could lead to the development of new industries and technologies, such as hydrogen-powered vehicles and appliances. 

Implications of hydrogen electrolyzers: 

Wider implications of hydrogen electrolyzers may include:

• New opportunities in renewable energy production, hydrogen transportation, and infrastructure development.


• Reduced dependence on fossil fuels leading to a significant decrease in harmful emissions and contributing to cleaner air and healthier communities.


• Economic growth for local economies, particularly in rural or remote areas where hydrogen production facilities could be established.


• Altered geopolitical dynamics as countries rich in renewable energy resources could become major exporters of green hydrogen.


• An acceleration in the deployment of wind and solar power installations.


• Enhanced resilience of the power grid, reducing the impact of power outages and contributing to more stable energy supplies.


• Changes in education and training programs, with a greater emphasis on skills needed for jobs in the hydrogen and renewable energy sectors.


• Changes in consumer behavior, with a greater acceptance and adoption of hydrogen-powered vehicles and appliances.


• Greater income inequality if the benefits and costs of this transition are not evenly distributed, requiring policies to ensure a just transition for all.

Questions to consider

• Do you think that a sufficient supply of green hydrogen can be generated in time to make a difference to climate change?


• Considering the expense and dangers involved in the manufacture and distribution of hydrogen, do you believe that hydrogen could become the energy carrier of the future?