Green hydrogen has major potential to contribute to the green energy revolution and reduce global greenhouse gas emissions. Demand for the gas is expected to increase significantly over the coming years, creating major opportunities for green hydrogen companies and hydrogen fuel cell companies.
Many businesses are involved in hydrogen production, but just 1% of global hydrogen output is produced with renewable energy as of the end of 2021, according to the International Renewable Energy Agency.
As such, it’s worth noting that not all hydrogen is green hydrogen. Because of this, we’re going to explain what green hydrogen is and highlight some of the companies which most prominently produce the energy source.
What is Green Hydrogen?
Green hydrogen is hydrogen that is produced by renewable energy.
To make the gas in this way, a chemical process called electrolysis needs to be performed. This is a chemical process that uses an electric current to facilitate a non-spontaneous chemical reaction.
To perform electrolysis, several components are required:
Electrolyte - This is a solution or molten compound that conducts electricity. It contains ions that can move freely, allowing an electric current to flow through it.
Anode and Cathode - The former is a positively charged electrode, where oxidation (loss of electrons) occurs, while the latter is negatively charged and is where reduction (gain of electrons) takes place.
Electrolytic Cell – This is the name given to the environment in which electrolysis takes place, where the anode and cathode are immersed in the electrolyte solution or placed in contact with the molten compound.
External Power Source - An external power source is connected to the anode and cathode. It provides the energy required to drive the non-spontaneous reactions. In green hydrogen, this energy source must be renewable and non-carbon emitting, such as solar or wind.
To produce hydrogen, the electrolyte solution required is water. The non-spontaneous reaction caused by the external power source causes water’s hydrogen and oxygen components to separate, thus creating hydrogen gas. This green hydrogen can then be used as a source of green energy.
Who Produces Green Hydrogen?
Plug Power (NASDAQ: PLUG)
Plug is the largest green hydrogen pure-play by market cap. With a well-established name and proven fuel cell technology, they are strategically positioned to capture a significant share of the growing market. Hydrogen fuel cells are becoming a preferred choice in various applications, including transportation and material handling.
Bloom Energy Corporation (NYSE: BE)
This is the second-largest hydrogen pure play. The company’s key asset is its electric power generation platform, dubbed the Bloom Energy Server. With this technology, the business aims to help deliver reliable, resilient, 24/7 onsite power to customers, with world-leading efficiency. The business is hoping this solution will be attractive to customers looking to meet sustainability targets while also maintaining reliability.
Air Products and Chemicals Inc (NYSE: APD)
This business prides itself on being the world’s largest hydrogen producer. It’s also heavily involved in NEOM, the planet’s biggest green hydrogen project. Air Products says the joint venture project in Saudi Arabia will be powered by four gigawatts of renewable power from solar, wind and storage. This will fuel the production of 650 tons per day of hydrogen by electrolysis, as well as 1.2 million tons per year of carbon-free ammonia using Haldor Topsoe technology.
Shell PLC (NYSE: SHEL)
Shell might be a giant of traditional hydrocarbons like petroleum, but the company is actively engaged in green hydrogen too. The company’s green hydrogen projects include the Shell Rhineland Refinery and Holland Hydrogen I, which will be Europe’s largest renewable hydrogen plant once operational in 2025.
Linde PLC (NYSE: LIN)
Linde is a multinational chemical giant with a technology portfolio that includes solutions that allow for the compression and safe refuelling of hydrogen. The business has built more than 200 plants for hydrogen manufacture, with the majority of these plants implemented as turnkey facilities for a fixed price. The company plans to sink between $7bn and $9bn into clean energy projects over the next two-to-three years.
There are many other smaller producers of green hydrogen and key equipment too, including those listed below:
Ballard Power Systems PLC (NASDAQ: BLDP)
ITM Power (OTCMKTS: ITMPF)
SunHydrogen Inc (OTCMKTS: HYSR)
Loop Energy Inc (OTCMKTS: LPENF)
Hazer Group Ltd (ASX: HZR)