140. Hydrogen Offers a ‘Multi-Billion-Dollar Opportunity’ This Decade for Innovative Companies

Hydrogen demand throughout the world reached 94 million metric tons in 2021, according to the International Energy Agency’s (IEA’s) Global Hydrogen Review 2022, an annual report issued by the IEA in late September last year. Demand for new applications grew to about 40,000 metric tons (up 60% from 2020, albeit from a low base). Notably, the IEA said some key new applications for hydrogen are showing signs of progress. Announcements for new steel projects are growing fast, according to the agency, just one year after the startup of the first demonstration project using pure hydrogen in direct reduction of iron. Furthermore, the first fleet of hydrogen fuel cell trains started operating in Germany. There were also more than 100 pilot and demonstration projects reported using hydrogen and its derivatives in shipping, and the IEA noted that major companies have already signed strategic partnerships to secure the supply of these fuels. In the power sector, the use of hydrogen and ammonia is also attracting a lot of attention. The report says announced projects stack up to almost 3.5 GW of potential capacity by 2030. With the future for hydrogen looking so bright, it’s no wonder companies are moving quickly to take advantage of the opportunity. Accelera, a new brand launched in March this year as part of Cummins’ New Power business segment, is among the companies hoping to cash in on the growth in hydrogen. It opened its first U.S. electrolyzer manufacturing plant in Fridley, Minnesota, with a ribbon-cutting ceremony on May 19. “Fridley was basically the fastest way for us to get capacity on stream quickly,” Alex Savelli, managing director of Hydrogen Technologies for Accelera, said as a guest on The POWER Podcast. “We announced it in October and we had the ribbon-cutting in May, so within six months.” While the Fridley site was a “brownfield” project, meaning it was built where Cummins already had an existing facility, Accelera is also building “greenfield” projects in other parts of the world. “There are a couple of