Emission Control: Electrolyser manufacturing capacity is growing - here’s why that’s important for green hydrogen

Emission Control is Stockhead’s fortnightly take on all the big news surrounding developments in renewable energy.

Green hydrogen produced from renewables via electrolysis is set to be at the very heart of the energy transition as more countries foster decarbonisation strategies to meet net-zero targets.

But as it stands, roughly 95% of the world’s hydrogen is made using fossil fuels. Green hydrogen comprises a paltry remaining 5%.

New data out of Norwegian-based Rystad Energy, an independent energy research firm, suggests 2023 might be the start of a long slog for this nascent sector with electrolyser manufacturing capacity set to grow by 186% from 2022 to 2023.

This is good news for green hydrogen production – more manufacturing capacity means more electrolysers can be built and economies of scale could result in the reduction of costs.

In fact, by 2030, the Norwegian based company estimates green hydrogen production will reach 24Mt from 212 gigawatts (GW) of electrolysers, fuelled by the latest round of incentives such as Inflation Reduction Act and Europe’s multitude of support schemes.

Focus shifting to raw materials for electrolyser supply chain

But Rystad says attention is now turning to the supply chain capacity necessary for electrolyser production.

Currently, the two most common electrolyser technologies are alkaline water electrolysis (AWE) and polymer electrolyte membrane (PEM).

Both PEM electrolysers and AWE electrolysers have experienced particularly high inflation in the past two years – on average prices for PEM electrolyser components have spiked around 30%, while AWE costs increased around 21% over the 2020-2022 period.

Platinum group metals (PGMs) such as platinum and iridium are key ingredients in PEM electrolysers and are also some of the rarest materials in the world, with iridium only found in two parts per billion (ppb) in the Earth’s crust and platinum in five ppb.

The price volatility of these two materials has contributed to the recent inflation seen hitting catalyst coated membranes, the component which splits the water into hydrogen and oxygen.

Electrolyser prices to decrease; this ASX player is poised to catch the wave

Rystad Energy supply chain analyst Selena Remmen says in the short term, electrolyser prices will start to decrease as key raw materials see their prices stabilise.

In medium to longer term, Remmen says technological innovation and efficiency gains will reduce the need for iridium, resulting in a significant cost reduction.

“However, unexpected jumps in costs could occur as iridium faces supply pressures as key producer South Africa faces power outages,” she explains.

“This demonstrates how the energy transition will not be predictable with many betting that green hydrogen will take a similar path to photovoltaics which saw investment costs drop by around 80% between 2010 and 2020.”

In Australia, one junior miner positioned to cash in on this opportunity is Podium Minerals (ASX:POD), the owners of a 15km long bulk tonnage PGM deposit at its Park Reef project in Western Australia.

The company wants to be Australia’s first platinum group metals producer and believes it is well placed to support the emerging demand from hydrogen electrolysers and hydrogen fuel cell technologies.

NOW READ: Podium’s processing breakthrough could unlock Parks Reef’s PGM riches

Podium Minerals share price today:

Here’s how ASX renewable energy stocks are tracking:

CODE	COMPANY	PRICE	% 1 WEEK RETURN	% 1 MONTH RETURN	% 6 MONTH RETURN	% 1 YEAR RETURN	MARKET CAP
AVL	Aust Vanadium Ltd	0.031	-3%	-3%	-34%	-11%	$143,999,632
BSX	Blackstone Ltd	0.17	3%	17%	-19%	-61%	$78,108,548
DEL	Delorean Corporation	0.045	-22%	-18%	-50%	-79%	$9,707,441
ECT	Env Clean Tech Ltd.	0.009	0%	-18%	-53%	-57%	$19,812,885
FMG	Fortescue Metals Grp	21.04	-5%	-4%	17%	23%	$66,905,907,668
PV1	Provaris Energy Ltd	0.046	-10%	-22%	-30%	-50%	$24,717,621
GNX	Genex Power Ltd	0.15	-3%	-3%	-27%	3%	$200,850,685
HXG	Hexagon Energy	0.0115	-12%	-28%	-36%	-78%	$5,642,075
HZR	Hazer Group Limited	0.5	-10%	-15%	-22%	-43%	$86,074,090
IFT	Infratil Limited	8.17	2%	3%	0%	10%	$5,864,267,014
IRD	Iron Road Ltd	0.12	9%	20%	-17%	-31%	$96,412,363
LIO	Lion Energy Limited	0.034	-3%	-6%	-3%	-29%	$14,487,748
MEZ	Meridian Energy	4.71	-5%	-7%	6%	-3%	$6,001,693,576
MPR	Mpower Group Limited	0.017	-6%	-19%	-26%	-55%	$4,992,956
NEW	NEW Energy Solar	0	-100%	-100%	-100%	-100%	$20,197,043
PGY	Pilot Energy Ltd	0.013	-7%	-24%	-24%	-72%	$10,477,059
PH2	Pure Hydrogen Corp	0.135	-18%	-29%	-52%	-67%	$49,721,533
PRL	Province Resources	0.037	0%	-33%	-60%	-57%	$44,896,739
PRM	Prominence Energy	0.0015	50%	0%	-25%	-88%	$3,636,913
QEM	QEM Limited	0.2	-5%	-2%	-15%	14%	$27,028,714
RFX	Redflow Limited	0.19	-12%	-3%	-57%	-54%	$34,146,679
SKI	Spark Infrastructure	0	-100%	-100%	-100%	-100%	$5,036,718,784
VUL	Vulcan Energy	6.05	-4%	0%	-26%	-31%	$873,520,983
CXL	Calix Limited	4.71	-12%	-7%	-36%	-32%	$876,221,268
KPO	Kalina Power Limited	0.011	-15%	-21%	-48%	-50%	$16,667,154
RNE	Renu Energy Ltd	0.046	-10%	-16%	15%	-13%	$20,703,600
NRZ	Neurizer Ltd	0.071	-13%	-15%	-49%	-51%	$82,393,714
LIT	Lithium Australia	0.035	-9%	-20%	-43%	-67%	$45,184,092
TVN	Tivan Limited	0.079	-2%	0%	-39%	23%	$109,685,040
SRJ	SRJ Technologies	0.086	-22%	-45%	-80%	-80%	$7,854,719
NMT	Neometals Ltd	0.62	-10%	-26%	-53%	-59%	$350,990,647
MR1	Montem Resources	0.04	0%	0%	0%	18%	$12,913,190
FGR	First Graphene Ltd	0.085	-11%	-13%	-32%	-47%	$51,934,936
EGR	Ecograf Limited	0.205	3%	-11%	-45%	-60%	$92,318,359
EDE	Eden Inv Ltd	0.006	20%	20%	-40%	-63%	$14,657,222
CWY	Cleanaway Waste Ltd	2.49	-3%	-7%	-13%	-13%	$5,565,000,300
CPV	Clearvue Technologie	0.155	-9%	-23%	-31%	-51%	$34,729,816
CNQ	Clean Teq Water	0.35	-3%	-8%	-34%	-44%	$21,641,362
M8S	M8 Sustainable	0.009	0%	0%	29%	-50%	$4,418,176
EOL	Energy One Limited	3.35	-11%	-24%	-35%	-46%	$97,594,685
FHE	Frontier Energy Ltd	0.41	-2%	-6%	6%	67%	$105,354,832
LPE	Locality Planning	0.05	4%	6%	-15%	-23%	$9,442,283
GHY	Gold Hydrogen	0.35	-3%	-24%	0%	0%	$18,360,000

Who’s got news out?

ACCELERATE RESOURCES (ASX:AX8)

Accelerate Resources has signed a heads of agreement with US-based RedoxBlox to explore the future supply of manganese products and supply chain solutions for RedoxBlox’s patented zero-carbon thermochemical energy storage technology.

RedoxBlox has identified the high quality and favourable location of AX8’s manganese projects to provide a reliable and ethically sourced manganese feedstock to their developing business.

Their zero-carbon tech, based on unique high purity manganese and magnesium-based components, offers a novel and disruptive solution to store and dispatch renewable energy for industry energy requirements.

Under the heads of the agreement, the parties’ primary objective is to explore how AX8 can profitably supply manganese products and other input materials to RedoxBlox from its Woodie Woodie North Project (or elsewhere in Australia) for the synthesis of RedoxBlox pellets for its energy storage technology.

GENEX POWER (ASX:GNX)

Genex says a key milestone has been reached in the construction of its 50MW/100MWh Bouldercome Battery Project with all 40 Tesla Megapack units having arrived at site.

“Reaching this major milestone significantly de-risks the overall construction schedule and represents the final piece of key equipment to arrive at the project,” the company says.

Key work activities at site will now focus on preparing Bouldercombe for commissioning, including completing all electrical connections from the Megapack units to the step up transformers, completing all interface works with Powerlink Queensland, as well as pre-commissioning of the Megapack units.

1414 DEGREES (ASX:14D)

A recent investment by Australian venture capital company, Blakford, will see funds be used to advance 14D’s brick technology intended to decarbonise energy intensive industries such as cement, alumina, and chemical processing.

14D says Blakford subscribed for 3 million shares at $0.10 per share, which it believes shows confidence in the future of its technology and projects.

HYTERRA (ASX:HYT)

Hyterra says the first phase of exploration at the Hoarty NE3 natural hydrogen exploration well was successful with the pump being installed on schedule.

The extended flow test is now underway and the operator is performing the necessary tests to monitor gas composition, pressure and flow rate.

While the testing is expected to continue for several months, the company intends to periodically report on the operations and outcomes.