Scaling up green hydrogen production faces multifaceted challenges that span technological, economic, and infrastructural domains:
1. Technological Limitations
Electrolysis efficiency and durability remain key hurdles, with suboptimal energy efficiency, limited electrolyzer lifespans, and technical complexities in thermal/hydraulic management within stacks. Scaling electrolyzer manufacturing introduces risks related to membrane electrode assembly durability and automated production line reliability in new Gigafactories.
2. Economic Barriers
Green hydrogen costs remain uncompetitive against fossil fuel-based hydrogen due to:
- High renewable energy input costs
- Capital-intensive infrastructure requiring massive upfront investments
- Limited economies of scale, as electrolysis currently accounts for <0.1% of global hydrogen production
3. Infrastructure Gaps
Lack of hydrogen transport/storage networks and renewable energy integration capabilities complicates large-scale deployment. Existing infrastructure primarily serves fossil fuel-based hydrogen production.
4. Policy and Market Uncertainties
Unclear subsidy implementation mechanisms and absent long-term offtake agreements deter investment. Regulatory frameworks lag behind technological developments, creating deployment bottlenecks.
5. Supply Chain and Manufacturing Risks
Scaling electrolyzer production to multi-gigawatt capacity introduces prototypical risks in high-throughput manufacturing equipment and supply chain vulnerabilities for critical materials. Lessons from battery/fuel cell manufacturing suggest significant operational challenges in quality control and process optimization.
6. Financing Challenges
Investors face dual uncertainties about future green hydrogen demand and production cost trajectories, requiring unconventional policy measures to de-risk projects. Early-stage projects struggle to secure commitments without guaranteed market off-takers.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-challenges-in-scaling-up-green-hydrogen-production-for-widespread-use/
