WEMO 2025 (complet) - Flipbook - Page 16
W E M O 202 5
O U T LO O K
92https://www.hydrogeninsight.com/electrolysers/severe-overcapacity-the-global-supply-ofelectrolysers-far-outstrips-demand-from-green-hydrogen-projects-bnef/2-1-1618327
93https://www.hydrogeninsight.com/production/exclusive-this-shell-backed-project-toship-vast-volumes-of-liquid-green-hydrogen-from-portugal-to-the-netherlands-has-beenscrapped/2-1-1621919
Electrolyzer manufacturers have built out large production
capacities to deliver the numerous announced projects.
However, as only few projects have reached current FID stage
and resulted in binding order, there is a large manufacturing
overcapacity in the OEM market95 undermining the industry's
pro昀椀tability.
94https://www.hydrogeninsight.com/production/engie-delays-4gw-green-hydrogen-target-byfive-years-due-to-slower-than-expected-industry-progress/2-1-1605256
95https://www.strategyand.pwc.com/de/en/industries/energy-utilities-resources/electrolyzermarket/strategyand-electrolyzer-market.pdf
WEMO 2025
Europe followed with approximately 700 MW (14%),
supported by initiatives like the European Hydrogen
Bank and Germany’s H2Global program. North America
contributed about 500 MW (10%), with the U.S.
leveraging in 2024 the In昀氀ation Reduction Act incentives.
Electrolyzer’s OEM market is facing overcapacity. 92 Green
hydrogen has been expected to grow fast and reliably, but
project realization is largely lagging as many Oil and Gas
Companies and Utilities are cancelling or delaying projects.
For example: Shell cancelled the 400 MW93 electrolyzers
plant project aimed at shipping vast volumes of liquid green
hydrogen from Portugal to the Netherlands. On the utilities
side, Engie has delayed 4GW green hydrogen target by 昀椀ve
years, due to slower-than-expected industry progress94
15
• Electrolyzer installed capacity is growing led by China.
In 2024, the global installed electrolyzer capacity for hydrogen
production reached approximately 5 GW, a signi昀椀cant increase
from 1.4 GW in 2023. China led with nearly 70% of the total,
primarily in regions like Inner Mongolia and Xinjiang. However,
China’s electrolyzer production faced signi昀椀cant overcapacity,
with 68% of the global 31.7 GW annual capacity (21 GW)
located in China, far exceeding the 5 GW installed in 2024.
