Sustainability Atlas
Chemistry & Materials Science·14 min read··...

Interview: practitioners on Catalysis & electrochemistry for decarbonization — what they wish they knew earlier

A practitioner conversation: what surprised them, what failed, and what they'd do differently. Focus on unit economics, adoption blockers, and what decision-makers should watch next.

The global electrolyzer market surged past $1.2 billion in 2024, with North America accounting for approximately 28% of installed capacity—a figure that practitioners say still dramatically understates the pipeline of projects awaiting final investment decisions. In conversations with electrochemical engineers, project developers, and corporate sustainability officers across the United States and Canada, a consistent theme emerged: the gap between laboratory breakthroughs and commercially viable deployment remains wider than most investor decks suggest. "We can demonstrate >80% efficiency in controlled conditions," notes one materials scientist at a leading national laboratory, "but translating that to a 100 MW facility with real-world water quality and variable renewable input is an entirely different engineering challenge." This article synthesizes insights from practitioners who have navigated the unit economics, confronted adoption blockers, and developed hard-won perspectives on what decision-makers should prioritize next.

Why It Matters

Catalysis and electrochemistry sit at the intersection of chemistry, materials science, and energy systems—serving as the technological backbone for green hydrogen production, direct air capture, sustainable ammonia synthesis, and electrochemical CO₂ conversion. The U.S. Department of Energy's Hydrogen Shot initiative, launched in 2021 with a target of $1/kg clean hydrogen by 2031, has catalyzed unprecedented investment in this space. By late 2024, the DOE had allocated over $7 billion toward hydrogen hubs and electrolyzer manufacturing, with the Gulf Coast, Midwest, and Appalachian regions emerging as focal points for industrial-scale deployment.

The stakes are substantial. Industrial processes account for approximately 24% of U.S. greenhouse gas emissions, with steel, cement, ammonia, and refining representing particularly hard-to-abate sectors. Electrochemical approaches offer a pathway to decarbonize these industries without requiring complete infrastructure replacement. The Inflation Reduction Act's 45V production tax credit—providing up to $3/kg for clean hydrogen meeting stringent lifecycle emissions thresholds—has fundamentally altered project economics, though practitioners caution that regulatory uncertainty around implementation continues to constrain final investment decisions.

In 2024-2025, North American electrolyzer manufacturing capacity expanded significantly. Nel Hydrogen's Michigan facility, Plug Power's Georgia gigafactory, and multiple announcements from international entrants like Cummins-Accelera and Siemens Energy signal growing domestic supply chain maturity. However, practitioners emphasize that manufacturing scale alone does not address the full value chain: catalyst durability, balance-of-plant integration, and operations expertise remain critical bottlenecks that determine whether projects achieve their intended economics.

Key Concepts

Traceability refers to the ability to track and verify the provenance and environmental attributes of hydrogen or other electrochemical products throughout their lifecycle. In practice, this means establishing chain-of-custody protocols that connect specific renewable electricity generation to electrolyzer operation, enabling credible claims about emissions intensity. The Treasury Department's proposed 45V guidance emphasizes temporal and geographic matching requirements that have significant implications for project design and power procurement strategies.

Benchmark KPIs in electrochemical systems typically include stack efficiency (kWh/kg H₂), degradation rate (% efficiency loss per 1,000 operating hours), capacity factor, and levelized cost of hydrogen (LCOH). Practitioners stress that headline efficiency figures often obscure important operational realities: a stack achieving 52 kWh/kg at beginning of life may degrade to 58 kWh/kg after 40,000 hours, fundamentally changing project economics. Sophisticated buyers now demand performance guarantees tied to degradation curves rather than nameplate specifications.

OPEX (operating expenditure) in electrolyzer facilities encompasses electricity costs, water treatment, catalyst replacement, membrane maintenance, and labor. Electricity typically represents 60-80% of total OPEX, making power procurement strategy and renewable integration architecture decisive factors in project viability. Practitioners report that early projects often underestimated balance-of-plant complexity, with auxiliary systems consuming 15-25% of total power input in poorly optimized installations.

Materials characterization encompasses the analytical techniques used to understand catalyst structure, composition, and performance at atomic and molecular scales. Techniques including X-ray photoelectron spectroscopy (XPS), transmission electron microscopy (TEM), and in-situ electrochemical analysis enable researchers to diagnose degradation mechanisms and guide catalyst development. Practitioners note that characterization capabilities increasingly differentiate successful development programs from those that struggle to translate laboratory results to commercial scale.

Additionality in the hydrogen context refers to the principle that clean hydrogen production should drive new renewable electricity generation rather than simply diverting existing clean power from other uses. The concept has become central to policy debates around 45V implementation, with stakeholders debating whether hourly matching requirements are necessary to ensure genuine emissions reductions or whether they impose excessive costs that slow deployment.

What's Working and What Isn't

What's Working

Proton Exchange Membrane (PEM) electrolyzer manufacturing scale-up has exceeded expectations. Companies including Plug Power, Nel Hydrogen, and ITM Power have demonstrated the ability to produce gigawatt-scale annual manufacturing capacity, with costs declining approximately 40% between 2020 and 2024. The modular nature of PEM systems enables phased deployment and operational flexibility that practitioners find valuable for managing demand uncertainty. One project developer notes: "We can bring online 20 MW increments and optimize operations before committing to the next phase—that de-risks the learning curve substantially."

Alkaline electrolysis has proven its durability in industrial settings. While often considered mature technology, recent innovations in electrode materials and system design have improved alkaline efficiency while maintaining the proven reliability that appeals to risk-averse industrial buyers. Thyssenkrupp Nucera and John Cockerill have deployed multi-hundred-megawatt systems in Europe, with North American projects in advanced development. Practitioners emphasize that alkaline's lower capital cost per kilowatt and tolerance for impure water sources make it compelling for applications where PEM's dynamic response advantages are less critical.

Strategic partnerships between electrolyzer manufacturers and industrial offtakers are accelerating deployment. Air Products' $4.5 billion NEOM green hydrogen project, CF Industries' partnership with Thyssenkrupp for green ammonia, and Constellation Energy's agreements with electrolyzer manufacturers demonstrate how binding offtake commitments unlock project financing. "The technology risk is manageable," observes one financing executive. "What banks need is revenue certainty—and that comes from creditworthy offtakers with contractual commitments."

What Isn't Working

Stack lifetime and degradation remain persistent challenges across technologies. Despite manufacturer claims of 80,000+ hour lifetimes, real-world operating data remains limited, and early commercial installations have experienced higher-than-projected degradation in some cases. Practitioners report that membrane and electrode failures, often triggered by water quality issues or thermal cycling, have required expensive unplanned maintenance. "The gap between laboratory accelerated testing and actual field performance has been humbling," admits one operations director. "We've learned that controlled conditions really matter."

Balance-of-plant integration complexity is consistently underestimated. Electrolyzer stacks represent only 30-40% of total system capital cost, with power electronics, water treatment, compression, storage, and control systems comprising the remainder. Practitioners report that integration challenges—including harmonic interference, thermal management, and control system coordination—have delayed commissioning and reduced performance at multiple early projects. Several interviewees emphasized that electrolyzer OEMs often lack expertise in these adjacent systems, creating coordination gaps.

Workforce development lags behind deployment ambitions. The specialized skills required for electrochemical system installation, commissioning, and operations are in short supply. Community colleges and technical training programs are only beginning to develop curricula for hydrogen technologies, and practitioners report relying heavily on vendor support for complex maintenance activities. "We can buy the equipment," notes one plant manager, "but finding technicians who understand both the electrochemistry and the industrial controls is genuinely difficult."

Key Players

Established Leaders

Plug Power operates one of North America's largest electrolyzer manufacturing facilities in Rochester, New York, with announced capacity exceeding 2 GW annually. The company has integrated electrolyzer production with hydrogen liquefaction and fuel cell systems, offering end-to-end solutions for material handling and stationary power applications.

Nel Hydrogen maintains significant North American presence through its Wallingford, Connecticut headquarters and expanded manufacturing in Michigan. The company offers both PEM and alkaline technologies, providing flexibility across application requirements and price points.

Cummins-Accelera (formerly Cummins New Power) has leveraged the parent company's engine manufacturing expertise and distribution network to scale electrolyzer production, with particular strength in alkaline systems through its Hydrogenics acquisition.

Bloom Energy has extended its solid oxide fuel cell expertise into reversible electrolysis, offering high-efficiency systems particularly suited for industrial applications with waste heat availability. The company's Fremont, California facility serves as both manufacturing and R&D headquarters.

Air Liquide brings decades of hydrogen handling and distribution expertise to its electrolyzer business, operating integrated production and logistics networks across North America that practitioners identify as a significant competitive advantage for project development.

Emerging Startups

Electric Hydrogen has attracted substantial venture backing for its high-performance PEM electrolyzer technology, with a focus on achieving cost parity with conventional hydrogen production at scale. The company's Devens, Massachusetts facility targets industrial customers in chemicals and refining.

Verdagy (formerly Chiyoda/DiviGas) has developed advanced alkaline technology with enhanced current density and efficiency characteristics, targeting large-scale applications where capital cost reduction delivers outsized impact on project economics.

Ohmium combines modular electrolyzer design with cloud-based performance monitoring and optimization, offering deployment flexibility and operational visibility that appeals to distributed generation applications.

Hgen has pioneered anion exchange membrane (AEM) technology that promises to combine PEM's dynamic response with alkaline's lower materials costs, though commercial-scale validation remains in progress.

Evoloh focuses on advanced manufacturing techniques and novel membrane materials to reduce electrolyzer costs while maintaining performance, with backing from leading climate-focused venture firms.

Key Investors & Funders

U.S. Department of Energy remains the dominant public funder through the Hydrogen Shot initiative, Regional Clean Hydrogen Hubs program, and Loan Programs Office, with combined commitments exceeding $10 billion for hydrogen-related investments.

Breakthrough Energy Ventures has made multiple investments across the electrochemical value chain, from catalyst development to electrolyzer manufacturing to end-use applications, bringing both capital and technical expertise to portfolio companies.

TPG Rise Climate has deployed significant capital into hydrogen infrastructure and manufacturing, with a focus on projects demonstrating clear pathways to commercial-scale deployment and emissions reduction.

Temasek has invested in multiple North American hydrogen companies, bringing international perspective and connections to Asian markets where hydrogen demand is projected to grow substantially.

BlackRock has allocated increasing infrastructure fund capital to hydrogen projects, signaling mainstream institutional investor confidence in the sector's long-term growth trajectory.

Examples

Air Products Louisiana Blue Hydrogen Complex: Located in Ascension Parish, Louisiana, this $4.5 billion facility will produce over 750 million standard cubic feet per day of blue hydrogen with carbon capture, while incorporating green hydrogen capacity using electrolyzers powered by dedicated renewable resources. Practitioners cite the project's integrated approach—combining steam methane reforming, carbon capture, and electrolysis—as a pragmatic transition strategy that de-risks technology adoption while building operational expertise. The facility is expected to achieve >95% carbon capture rates, with first production targeted for 2026.

Hy Stor Energy Mississippi Clean Hydrogen Hub: This project in Hancock County, Mississippi leverages underground salt cavern storage to enable large-scale hydrogen production from renewable sources. With planned capacity of 110,000 metric tons annually by 2027, the project addresses one of hydrogen's key challenges—economic storage—through geology unique to the Gulf Coast region. Practitioners emphasize that the $3/kg 45V tax credit makes the project economically viable, but note that storage capability provides strategic value beyond immediate economics by enabling grid-scale renewable integration.

Constellation Energy Partnership with Electric Hydrogen: This collaboration announced in 2024 pairs Constellation's nuclear generation assets with Electric Hydrogen's electrolyzer technology to produce pink hydrogen with effectively zero lifecycle emissions. The project, located at Constellation's Nine Mile Point facility in New York, demonstrates how existing clean electricity assets can be leveraged for hydrogen production, addressing additionality concerns while utilizing otherwise curtailed generation. Initial capacity of 10 MW is planned with expansion potential based on operational performance and market development.

Action Checklist

  • Conduct detailed water quality analysis before electrolyzer technology selection, as membrane sensitivity varies significantly across PEM, alkaline, and AEM systems
  • Develop power procurement strategy that balances 45V compliance requirements with project economics, considering both temporal and geographic matching implications
  • Establish degradation monitoring protocols with clear performance thresholds that trigger warranty claims or operational adjustments
  • Build relationships with multiple electrolyzer vendors to maintain negotiating leverage and supply chain resilience as the market matures
  • Invest in workforce training programs that develop both electrochemical fundamentals and industrial control system expertise
  • Engage early with permitting authorities, as hydrogen facilities often require novel regulatory interpretations that can extend timelines
  • Secure binding offtake agreements with creditworthy counterparties before pursuing project financing, as merchant hydrogen exposure remains difficult to underwrite
  • Develop comprehensive safety management systems that address hydrogen's unique properties, including wide flammability range and embrittlement concerns
  • Establish traceability systems from project inception, as retrofitting chain-of-custody protocols is substantially more expensive than designing them in
  • Plan for technology evolution by designing facilities with upgrade pathways that can accommodate next-generation stacks and balance-of-plant improvements

FAQ

Q: What is the realistic timeline for achieving the $1/kg hydrogen target set by the DOE Hydrogen Shot initiative? A: Practitioners express cautious optimism about reaching $1/kg by the early 2030s, but emphasize that this requires simultaneous progress across multiple dimensions: electrolyzer capital cost reduction to approximately $100-150/kW, electricity prices below $20/MWh with high capacity factors, and stack lifetimes exceeding 80,000 hours with minimal degradation. Current projects typically achieve $4-6/kg without tax credits, or $1-3/kg with full 45V benefit. The pathway to $1/kg likely requires learning-by-doing at scale, which creates a chicken-and-egg dynamic that policy support is designed to break.

Q: How should decision-makers evaluate the trade-offs between PEM and alkaline electrolyzer technologies? A: The choice depends heavily on application requirements and site-specific factors. PEM systems offer superior dynamic response, higher current density, and compact footprint—advantages that matter most for variable renewable integration and space-constrained sites. Alkaline systems provide lower capital cost, proven long-term reliability, and tolerance for impure water sources, making them attractive for baseload industrial applications with consistent power supply. Practitioners recommend conducting detailed techno-economic analysis for specific project conditions rather than relying on generic technology comparisons.

Q: What are the most significant adoption blockers for industrial hydrogen users considering the transition from gray to green hydrogen? A: Practitioners consistently identify three primary barriers: price competitiveness with incumbent gray hydrogen (which remains 2-3x cheaper in most regions even with tax credits), supply reliability concerns (as green hydrogen production depends on weather-variable renewable generation), and technical integration challenges (as existing equipment may require modification to handle hydrogen with different impurity profiles). Building confidence through demonstration projects and establishing robust supply agreements with appropriate flexibility provisions addresses these concerns, but the transition requires patient capital and policy support.

Q: How do additionality requirements in the 45V tax credit affect project economics and development timelines? A: The Treasury Department's proposed hourly matching and deliverability requirements significantly impact project design. Hourly matching—requiring that hydrogen production be matched with renewable generation in the same hour—reduces effective capacity factors for projects without energy storage, potentially increasing levelized hydrogen costs by 20-40% compared to annual matching. Practitioners report that projects designed before final guidance face potential stranded investment in grid interconnection and offtake contracts if rules change. Many developers are incorporating storage or pursuing power purchase agreements with dispatchable renewables to hedge this uncertainty.

Q: What performance metrics should procurement teams prioritize when evaluating electrolyzer vendors? A: Beyond headline efficiency specifications, practitioners recommend focusing on: degradation rates under realistic operating conditions (not just controlled laboratory testing), demonstrated stack replacement procedures and associated downtime, balance-of-plant integration support and total system efficiency (not just stack efficiency), warranty terms including performance guarantees with financial teeth, and supply chain resilience for critical components including membranes, electrodes, and power electronics. Reference site visits and candid conversations with existing customers provide insights that sales materials often obscure.

Sources

Topics

catalysiselectrochemistrytraceabilitybenchmark KPIsopexmaterials characterizationadditionality

Related Articles