A market opportunity in power generation for hydrogen energy storage systems

Abstract

Hydrogen energy storage (HES) is the only long-term energy storage system available for the power generation industry. It is indispensable for a grid renewable energy only wind and solar photovoltaic suffering from a large variability over many different time scales. The major problem of HES is, more than a lack on the market of reliable components, the lack of any offer for a complete system, comprising an electrolyzer for hydrogen production, a fuel tank to store the hydrogen, and a fuel cell stack for the production of electricity from hydrogen, offering a key-in-the-hand HES plant to customers. While there are already clients that could be interested in purchasing such HES for their renewable-energy-only grid (for example NEOM City), there is not yet a supplier. This commentary raises attention to the issue of lack of readiness of HES systems, resulting from a lack of offers on the market for complete HES power systems and the low economic efficiency of the largest hydrogen companies. This situation is expected to change shortly, given the resources which have been finally allocated towards hydrogen energy development in the United States, however with the recession, inflation, and high-interest rates negatively affecting the further development of an industrial sector not yet mature, where the most of the industrial players haven't posted yet any profit with the market becoming nervous.