Hysata’s Electrolyzer Revolutionizing Hydrogen Production Despite Market Strains

Industry news
14 May 2024
источник: Energynews.biz
Hysata, an Australian company, claims to have developed the world's most efficient electrolyzer with an impressive 95% efficiency. Recently, Hysata raised $111 million to expand production and lower the cost of green hydrogen. Despite the promising technology, there are significant market challenges that could affect its adoption.

Hysata's electrolyzer, based on technology from the University of Wollongong, is notable for its 95% efficiency, much higher than the typical 75% efficiency of standard electrolyzers. This means it uses 41.5 kWh of energy to produce a kilogram of hydrogen, compared to the usual 52.5 kWh. The innovation comes from eliminating gas bubbles in the electrolyte, which reduces resistance and improves electrode contact.

However, the market presents substantial challenges. BloombergNEF notes that the current problem is not the supply or efficiency of electrolyzers, but the demand. Many manufacturers, including Hysata, are facing slow demand due to delays in subsidies in the US and EU. These delays have led developers to postpone or cancel orders, causing financial losses across the industry.

The financial strain in the market is clear. Only one pure electrolyzer company made a profit last year, while others reported losses of up to $1.4 billion. An oversupply of electrolyzer production capacity is worsening the situation. By the end of 2023, global capacity was seven times greater than the expected demand for 2024, with plans to more than double this capacity by 2025. New manufacturers entering the market are increasing competition.

Although Hysata’s technology could lower operational costs for hydrogen producers and make green hydrogen more competitive, it does not solve all the inefficiencies in the hydrogen supply chain.