Stakeholder perspectives on the scale-up of green hydrogen and electrolyzers

Green hydrogen is a promising alternative to fossil fuels. However, current production capacities for electrolyzers and green hydrogen are not in line with national political goals and projected demand. Considering these issues, we conducted semi-structured interviews to determine the narratives of...

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Main Authors: Bernhard-Johannes Jesse, Gert Jan Kramer, Vinzenz Koning, Stefan Vögele, Wilhelm Kuckshinrichs
Format: Article
Language:English
Published: Elsevier 2024-06-01
Series:Energy Reports
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2352484723015718
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author Bernhard-Johannes Jesse
Gert Jan Kramer
Vinzenz Koning
Stefan Vögele
Wilhelm Kuckshinrichs
author_facet Bernhard-Johannes Jesse
Gert Jan Kramer
Vinzenz Koning
Stefan Vögele
Wilhelm Kuckshinrichs
author_sort Bernhard-Johannes Jesse
collection DOAJ
description Green hydrogen is a promising alternative to fossil fuels. However, current production capacities for electrolyzers and green hydrogen are not in line with national political goals and projected demand. Considering these issues, we conducted semi-structured interviews to determine the narratives of different stakeholders during this transformation as well as challenges and opportunities for the green hydrogen value chain. We interviewed eight experts with different roles along the green hydrogen value chain, ranging from producers and consumers of green hydrogen to electrolyzer manufacturers and consultants as well as experts from the political sphere. Most experts see the government as necessary for scale-up, by setting national capacity targets, policy support and providing subsidies. However, the experts also accuse the governments of delaying development through overregulation and long implementation times for regulations. The main challenges that were identified are the current lack of renewable electricity and demand for green hydrogen. Demand for green hydrogen is influenced by supply costs, which partly depend on prices for electrolyzers. However, one key takeaway of the interviews is the skeptical assessments by the experts on the currently discussed estimates for price reduction potential of electrolyzers. While demand, supply, and prices are all factors that influence each other, they result in feedback loops in investment decisions for the energy and manufacturing industries. A second key takeaway is, that according to the experts, current investment decisions in new production capacities are not solely dependent on short-term financial gains, but also based on expected first mover advantages. These include experience and market share which are seen as factors for opportunities for future financial gains.Summarized, the results present several challenges and opportunities for green hydrogen and electrolyzers, and how to address them effectively. These insights contribute to a deeper understanding of the dynamics of the emerging green hydrogen value chain.
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spelling doaj.art-b0a55a24268b417c8e38e91531bef6b62023-12-06T04:17:32ZengElsevierEnergy Reports2352-48472024-06-0111208217Stakeholder perspectives on the scale-up of green hydrogen and electrolyzersBernhard-Johannes Jesse0Gert Jan Kramer1Vinzenz Koning2Stefan Vögele3Wilhelm Kuckshinrichs4Copernicus Institute of Sustainable Development – Utrecht University, PO Box 80.115, 3508 TC Utrecht, the Netherlands; Institute of Energy and Climate Research – Systems Analysis and Technology Evaluation (IEK-STE), Forschungszentrum Jülich, Wilhelm-Johnen-Straße, 52425 Jülich, Germany; Corresponding author at: Copernicus Institute of Sustainable Development – Utrecht University, PO Box 80.115, 3508 TC Utrecht, the Netherlands.Copernicus Institute of Sustainable Development – Utrecht University, PO Box 80.115, 3508 TC Utrecht, the NetherlandsCopernicus Institute of Sustainable Development – Utrecht University, PO Box 80.115, 3508 TC Utrecht, the Netherlands; Centre for Complex Systems Studies, Utrecht University, Minnaertgebouw, Leuvenlaan 4, 3584 CE Utrecht, the NetherlandsInstitute of Energy and Climate Research – Systems Analysis and Technology Evaluation (IEK-STE), Forschungszentrum Jülich, Wilhelm-Johnen-Straße, 52425 Jülich, GermanyInstitute of Energy and Climate Research – Systems Analysis and Technology Evaluation (IEK-STE), Forschungszentrum Jülich, Wilhelm-Johnen-Straße, 52425 Jülich, GermanyGreen hydrogen is a promising alternative to fossil fuels. However, current production capacities for electrolyzers and green hydrogen are not in line with national political goals and projected demand. Considering these issues, we conducted semi-structured interviews to determine the narratives of different stakeholders during this transformation as well as challenges and opportunities for the green hydrogen value chain. We interviewed eight experts with different roles along the green hydrogen value chain, ranging from producers and consumers of green hydrogen to electrolyzer manufacturers and consultants as well as experts from the political sphere. Most experts see the government as necessary for scale-up, by setting national capacity targets, policy support and providing subsidies. However, the experts also accuse the governments of delaying development through overregulation and long implementation times for regulations. The main challenges that were identified are the current lack of renewable electricity and demand for green hydrogen. Demand for green hydrogen is influenced by supply costs, which partly depend on prices for electrolyzers. However, one key takeaway of the interviews is the skeptical assessments by the experts on the currently discussed estimates for price reduction potential of electrolyzers. While demand, supply, and prices are all factors that influence each other, they result in feedback loops in investment decisions for the energy and manufacturing industries. A second key takeaway is, that according to the experts, current investment decisions in new production capacities are not solely dependent on short-term financial gains, but also based on expected first mover advantages. These include experience and market share which are seen as factors for opportunities for future financial gains.Summarized, the results present several challenges and opportunities for green hydrogen and electrolyzers, and how to address them effectively. These insights contribute to a deeper understanding of the dynamics of the emerging green hydrogen value chain.http://www.sciencedirect.com/science/article/pii/S2352484723015718Green hydrogenElectrolyzerSemi-structured interviewsInvestment decisions
spellingShingle Bernhard-Johannes Jesse
Gert Jan Kramer
Vinzenz Koning
Stefan Vögele
Wilhelm Kuckshinrichs
Stakeholder perspectives on the scale-up of green hydrogen and electrolyzers
Energy Reports
Green hydrogen
Electrolyzer
Semi-structured interviews
Investment decisions
title Stakeholder perspectives on the scale-up of green hydrogen and electrolyzers
title_full Stakeholder perspectives on the scale-up of green hydrogen and electrolyzers
title_fullStr Stakeholder perspectives on the scale-up of green hydrogen and electrolyzers
title_full_unstemmed Stakeholder perspectives on the scale-up of green hydrogen and electrolyzers
title_short Stakeholder perspectives on the scale-up of green hydrogen and electrolyzers
title_sort stakeholder perspectives on the scale up of green hydrogen and electrolyzers
topic Green hydrogen
Electrolyzer
Semi-structured interviews
Investment decisions
url http://www.sciencedirect.com/science/article/pii/S2352484723015718
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