Hydrogen Storage Tank Prices to Fall Rapidly
The authors are analysts of NH Investment & Securities. They can be reached at minjae.lee@nhqv.com and ys.jung@nhqv.com, respectively. -- Ed.
The H2 Mobility+ Energy Show confirms: 1) growing participation in the hydrogen industry; 2) an acceleration in product price declines thanks to the introduction of new technologies and localization; 3) an expansion in applicable areas for hydrogen energy; and 4) stronger partnerships with overseas players. Given such, a ‘hydrogen society’ looks to be coming faster than expected.
H2 Mobility+ Energy Show confirms four new directions
Our recent attendance at the H2 Mobility+ Energy Show (Sep 8~11) confirms four changes from the time the show was held last year: 1) a rising number of domestic companies are participating in the hydrogen industry, with large players being especially active; 2) through new technologies and localization attempts, there will likely be decreases in the unit prices for Proton Exchange Membrane (PEM) fuel cells and PEM water electrolysis products; 3) hydrogen energy applications are expanding to include high-performance hydrogen cars, commercial vehicles, construction equipment, and ship engines, among others; and 4) in cooperation with overseas companies, full-fledged business ventures are underway related to water electrolysis, ammonia, and carbon capture, utilization, and storage (CCUS).
Hydrogen storage tank prices to fall rapidly; PEM fuel cell and water electrolysis unit prices to decrease
In addition to hydrogen vehicles-related players, several companies related to PEM fuel cells and water electrolysis, hydrogen refueling stations (HRS), and hydrogen storage tanks participated at the show. Particularly standing out is a large increase in the number of hydrogen storage tank makers—besides Iljin Hysolus, also appearing were Kolon, NK Ether, and others. Going forward, hydrogen storage tank prices should continue to drop over the mid/long term in response to both stiffer competition and economies of scale effects.
Looking at PEM fuel cell and water electrolysis products, we expect unit prices to keep shrinking and usage to expand via localization and new technologies. Domestic firm Sang-A Frontec is in the process of localizing polymer electrolyte (an essential material for PEM fuel cells). And, German chemical player Heraeus’s new catalyst containing less iridium than conventional products used in PEM water electrolysis is expected to garner market attention. Unlisted company Elchemtech’s MW-level PEM water electrolysis facility is scheduled to be fully installed and under operation within 2H21. The applicable areas for PEM fuel cells will likely also continue to expand in line with Hyundai Motor Group (HMG)’s Full Flat System (3rd-generation PEM fuel cell system), which can be applied to several different types of vehicles.