Technology firm Siemens Energy will invest €30mn ($34mn) to convert its gas turbine manufacturing facility in Berlin to produce industrial-scale proton-exchange-membrane (PEM) electrolysers.

Individual electrolyser cells will be manufactured and combined to form stacks of 500MW and larger. Depending on the required capacity, these will then be assembled into deployable units for industry at a separate facility in Berlin.

“With the new production facility for hydrogen electrolysers, we are reinforcing our claim to play an active role in shaping the energy transition,” says Christian Bruch, CEO of Siemens Energy.

“For this to be economically viable, the manufacturing costs for electrolysers must be significantly reduced. With our new production facility, we are helping to make hydrogen competitive sooner.” 

€30mn – Investment in factory conversion

The firm says it is focusing on PEM electroysers because of their high level of efficiency, high product gas quality and reliable operation with no chemicals or impurities.

Manufacture will start in 2023. Siemens Energy already designs and supplies electrolysers, but the new facility will allow it to expand its operations.

Benefitting from hydrogen economy

Siemens Energy has been adapting its business to benefit from growing demand for hydrogen for some time. Its gas turbines can already burn up to 50pc hydrogen.

Countries such as Chile, the Middle East, or Australia can produce green hydrogen below €2/kg by the middle of the decade, although facilities located in Germany or in Central Europe may not attain these price levels because of high electricity prices, according to the firm.

Siemens Energy has a number of existing large orders on its books including one to supply a 200MW electrolyser to industrial gases firm Air Liquide’s Normand’Hy project.

Crowded market

The firm is one of a handful of European manufacturers that are all seeing growing order backlogs as demand for electrolysers grows, following the release of a number of national hydrogen strategies.

Norwegian electrolyser manufacturer Nel has seen its purchase order backlog standing at NOK1.2bn ($140mn) as of earlier this month, up by 25pc from 2020.

And UK-based electrolyser manufacturer ITM Power has seen its order backlog grow to 499MW in 2021—up more than 61pc on the previous year.

Both Nel and ITM have recently commissioned new manufacturing plants.

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Author: Tom Young