Bosch invests hundreds of millions in green hydrogen

Hydrogen (photo: akitada31 via Pixabay)
Wouter Hoeffnagel
Wouter Hoeffnagel
16 May 2022
4 min

Germany's Bosch is betting on green hydrogen. The company is investing up to $500 million in developing components of electrolysers and part of its Mobility Solutions division.

"We cannot afford to put off climate action any longer. We therefore want to use Bosch technology to support the rapid expansion of hydrogen production in Europe," Dr Stefan Hartung, chairman of the board at Bosch, explained at the presentation of the company's annual figures. "To do this, we are deploying our knowledge of fuel cell technology."

Components for electrolysers

Specifically, Bosch is investing in the development of components for electrolysers. An electrolyser separates water into hydrogen and oxygen. This process consumes energy. If renewable energy is deployed, 'green hydrogen' can be generated using an electrolyser.

Green hydrogen is highly topical. With the need to reduce CO2 emissions and transition from fossil fuels to sustainable alternatives, the demand for green hydrogen is rising rapidly. The applications are very diverse. Think of energy-intensive industries such as steel production, but also the transport sector. Demand is also rising in the real estate sector.

Growing market

This is also reflected in expectations for the market for electrolyzer components. For example, market researcher PwC predicts in a recent report that the demand for green hydrogen will rise rapidly in the coming years to some 530 million tonnes by 2050. Bosch expects the global market for electrolyzer components to grow to around USD 14 billion in sales over the same period. Bosch is investing some $3 billion in climate-neutral technology, including electrification and hydrogen, over the next three years. By doing so, Bosch aims to help companies and society reduce dependence on fossil fuels.

A key component of an electrolyser is the so-called 'stack'. This consists of several hundred individual cells, connected in series. In each cell, electricity splits water into hydrogen and oxygen. The process in an electrolyser is reversed compared to a fuel cell. It generates electricity by combining hydrogen and oxygen.

Chemical reaction

In both cases, a chemical reaction takes place, made possible by the use of a proton-exchange membrane (PEM). Bosch is working with a number of partners to combine the electrolyser stack with a control unit, power supply and a number of sensors. In this way, the company aims to create a smart module.

A pilot production of these modules is planned for next year. The company aims to be able to supply the smart modules to electrolyser manufacturers and industrial service providers from 2025.

Suitable for small- and large-scale projects

Bosch reports that the modules are suitable for both small- and large-scale projects. These include projects with capacities of up to ten megawatts, as well as onshore and offshore production sites with capacities running into the gigawatts.

The company plans to connect the smart modules to the Bosch Cloud. Among other things, this cloud environment should help maximise the efficiency of hydrogen production and extend the lifetime of the stack. The modules should become modular. Among other things, this means that to carry out maintenance, only part of the modules should be taken out of service. Only part the hydrogen production will be affected in this case, while the rest of the plant will continue to function properly.

Bosch wants to mass-produce the modules, achieving economies of scale. "Two key factors are involved in ramping up hydrogen production: speed and cost," says Dr Markus Heyn, member of Bosch's executive board and president of the Mobility Solutions division. "Here we can exploit our strengths, thanks to our expertise in mass production and our automotive know-how." Bosch plans to start production at several European locations as soon as possible.

Also many other developments

Developments in the field of green hydrogen have been happening in rapid succession recently. For example, the Institute for Sustainable Process Technology (ISPT) recently presented a design for a gigawatt-scale green hydrogen plant. The plant will enable hydrogen production on a massive scale. This is essential in view of the energy transition, in which hydrogen is set to play a key role.

Earlier this year, the European consortium MadoquaPower2X also launched a project for the large-scale production of green hydrogen and ammonia in Sines, Portugal. MadoquaPower2X comprises the Portuguese project developer Madoqua Renewables, the Dutch energy transition project developer and consultancy Power2X, and the Danish fund manager Copenhagen Infrastructure Partners’ Energy Transition Fund (CIP). The MadoquaPower2X project has an investment value of one billion euros.

One example in the Netherlands is a hydrogen plant in Oosterwolde, Friesland, run by renewable energy developer GroenLeven and network operator Alliander. At these plants, the parties are investigating how hydrogen can play a role in areas where the electricity grid’s capacity is insufficient to feed back large-scale solar energy generation.

VoltH2 Terneuzen and Virya Energy are also working on a green hydrogen plant. This plant is planned for the North Sea Port area in Vlissingen. Using a 25 MW electrolysis unit, the plant will produce up to 3.6 million kg of green hydrogen annually. The plant’s capacity can be scaled up to 100 MW at a later stage. This should enable an annual production of 14.4 million kg of green hydrogen.

Author: Wouter Hoeffnagel
Photo: akitada31 via Pixabay

Wouter Hoeffnagel

Wouter Hoeffnagel is a freelance journalist and copywriter, with interests in both manufacturing industry, IT and the intersection between these topics. He writes a wide range of texts on these topics, ranging from background articles, interviews and news items to blog posts, white papers, case studies and website texts.