SOEC Electrolyzer Market Size, Share, Opportunities, And Trends By Technology (RO Purification, UF Purification, UV Purification, Others), By End-User (Horeca, Educational Institutions, Hospitals, Others), And By Geography - Forecasts From 2023 To 2028

The SOEC electrolyzer market is anticipated to grow at a steady pace throughout the forecast period. A Solid Oxide Electrolysis Cell (SOEC) is a type of high-temperature electrolyzer. It is built on solid oxide fuel cell (SOFC) technology but operated in reverse. The increasing production of green hydrogen coupled with decarbonization initiatives is a major growth driver of the SOEC electrolyzer market. Moreover, various associated advantages along with government support and research projects are further expected to boost the SOEC electrolyzer market.

Increasing Green Hydrogen Production

SOEC electrolyzers can produce "green hydrogen" by utilizing renewable energy sources such as wind, solar, or hydroelectric power. Green hydrogen is considered a clean and sustainable energy carrier and the increasing production of green hydrogen is expected to propel the SOEC electrolyzer market. For instance, in 2021, the demand for hydrogen reached 94 million tonnes (Mt). Although the demand for new applications increased to roughly 40 thousand tonnes, the majority of the growth was due to conventional usage in manufacturing and refining according to the IEA. Moreover, in January 2022, the Union Cabinet of India authorized the National Green Hydrogen Mission intending to develop a green hydrogen capacity of at least 5MMT per annum.

Multiple Advantages of SOEC Electrolyzer

There are various advantages of using SOEC electrolyzer technology that is contemplated to accelerate the SOEC electrolyzer market. For instance, compared to traditional alkaline or proton exchange membrane (PEM) electrolyzers, SOECs can achieve higher efficiencies, especially when integrated with high-temperature heat sources. Their efficiency makes them attractive for large-scale hydrogen production, where energy efficiency is crucial. Moreover, SOEC electrolyzers can use various heat sources, including waste heat from industrial processes or excess heat from power generation plants, which can improve overall energy utilization and reduce greenhouse gas emissions. Additionally, in scenarios with a high penetration of intermittent renewable energy sources, SOEC electrolyzers can provide a means of energy storage.

Decarbonization Initiatives

Many countries and industries strive to reduce carbon emissions and transition to low-carbon energy systems, which is expected to boost the SOEC electrolyzer market. For instance, the Industrial Deep Decarbonization Initiative (IDDI) under the Clean Energy Ministerial of the UN is a collaborative effort involving both public and private organizations worldwide. Its primary objective is to foster the adoption and utilization of low-carbon industrial materials by creating a demand for such products in the market. Moreover, in accordance with the most recent Energy Conservation (Amendment) Bill 2022, designated users of India are required to utilize non-fossil fuels which are anticipated to increase demand for renewable energy.

Research and Development Support

Government and private support for research and development in the area of hydrogen technology particularly SOEC electrolyzer are anticipated to augment the SOEC electrolyzer market. For instance, AquaVentus (10GW) program was launched in August 2020 by a consortium of 27 companies including RWE, Vattenfall, Shell, and others. The planned completion year is 2035 with a purpose to generate hydrogen at a rate of one million tons per year. The Decarbonization Pathways for Indonesian Sustainable Urban Mobility (DISUM) research initiative in collaboration with IBRD, the Ministry of Transportation, and the Ministry of National Development Planning of Indonesia was launched in July 2023. It aids the Indonesian government in determining the most affordable decarbonization routes for passenger transport throughout Indonesian cities.

Restraints in the Market

The SOEC electrolyzer market has experienced growth and development however some restraints or challenges can impact its expansion. For example, SOEC electrolyzers operate at high temperatures, which can impose challenges on the durability and long-term stability of the cell materials. Moreover, scaling up the production of SOEC electrolyzers while maintaining consistent quality and performance is also a significant challenge. As the demand for large-scale hydrogen production grows, cost-effective and scalable manufacturing processes must be developed.

North America is Expected to Grow Considerably

North America is expected to hold a significant share of the SOEC electrolyzer market during the forecast period. The factors attributed to such a share are the growing focus on emissions reduction by governments of industrialized countries such as the United States, and their propensity for a technical transition to sustain to a certain degree and replace aging power grids. For instance, in April 2022, the Federal Highway Administration of the United States Department of Transportation unveiled a new program named Carbon Reduction Program (CRP) that releases $6.4 billion in formula financing for states and communities over five years. The CRP will assist states in creating carbon reduction plans and addressing the national climate challenge.

Major Market Players

• Toshiba Corporation, founded in 1875 is one of the world's leading manufacturers of electronics, electrical equipment, and industrial systems. The company is involved in the R&D of SOEC which is partially funded by a project JPNP14021, commissioned by NEDO (Japan).
• FuelCell Energy Inc. is a clean energy company based in the United States. The company specializes in the development, manufacturing, and operation of fuel cell power plants. The Solid Oxide Electrolyzer Cell (SOEC) from FuelCell Energy can create hydrogen with an electrical efficiency of about 90% without extra heat and 100% with extra heat.
• Bloom Energy Corporation specializes in solid oxide fuel cell (SOEC) technology to generate electricity with lower emissions compared to conventional power generation methods. The company's SOEC technology named Bloom Hydrogen Electrolyzer™ can be used in conjunction with renewable energy sources to efficiently produce clean, affordable hydrogen.

Key Market Developments

• In April 2023, Sunfire installed the world’s multi-megawatt SOEC electrolyzer as a part of the MultiPLHY project in the Netherlands. More than 60kg of green hydrogen may be produced in a single hour by the installed plant.
• In May 2022, Topsoe announced to build the world’s largest SOEC electrolyzer production facility in Denmark which will be operational by 2025. The annual capacity of the plant is estimated to be 500 MW with scalability up to 5GW.
• In July 2021, a UK-based solid oxide fuel cell developer Ceres Power announced to enter into electrolyzer space technology with a target hydrogen production in difficult-to-decarbonize sectors such as steel, industrial gas production, and e-fuels. The company said that it will achieve hydrogen production at below $1.50/kg before 2025.

Segmentation:

• By Technology
  • RO Purification
  • UF Purification
  • UV Purification
  • Others
• By End-User
  • Horeca
  • Educational Institutions
  • Hospitals
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others