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Many electrolyzer manufacturers are forgoing investments in new manufacturing capacity due to a lack of demand for green hydrogen

Many electrolyzer manufacturers are forgoing investments in new manufacturing capacity due to a lack of demand for green hydrogen. This low demand is primarily driven by the high costs associated with producing green hydrogen, which remain significantly higher than those for conventional hydrogen derived from fossil fuels. Additionally, although numerous green hydrogen projects have been announced, many producers have not yet committed to their final investment decisions. This uncertainty further discourages manufacturers from expanding their production capabilities, as they await more definitive decisions from hydrogen projects.1

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Footnotes​

  1. Parkes, R. (2023, September 11). Analysis: Why are green hydrogen electrolyser makers putting the brakes on factory capacity expansion? Hydrogen Insight. https://www.hydrogeninsight.com/electrolysers/analysis-why-are-green-hydrogen-electrolyser-makers-putting-the-brakes-on-factory-capacity-expansion-/2-1-1509259 ↩