Electrolysis, the key technology for producing green hydrogen, has positioned Europe as a powerhouse in innovation and manufacturing. However, this leadership is increasingly under threat. While Europe debates policies and sets ambitious goals, other regions are scaling up rapidly with large-scale projects and swift execution.
Recent political developments highlight the urgency of this challenge. German Chancellor Friedrich Merz has emphasized the need for a pragmatic and market-oriented energy policy focused on cost efficiency and competitiveness, while maintaining Europe’s climate goals. Similarly, Mario Draghi has pointed out that Europe’s ability to lead in future technologies, such as electrolysis, depends on aligning decarbonization with competitiveness.
We need to strengthen Europe’s position. The key lies in scale, cost efficiency, and the ability to deliver. Scaling up manufacturing and deployment is essential to drive down costs and remain competitive on the global stage.
thyssenkrupp nucera: Delivering Leadership at Scale
At thyssenkrupp nucera, we don’t just talk about scale – we deliver it. In 2024, we manufactured 1.5 GW of electrolyzers. According to BloombergNEF, we are the global leader in the electrolyzer market, with deliveries spanning multiple large-scale projects, including partnerships with industry leaders like NEOM, Shell and others.
Scaling manufacturing is not just about meeting demand; it’s about driving cost reductions across the value chain. Economies of scale are essential to making green hydrogen competitive with fossil-based alternatives.
The Challenge: Global Competition
thyssenkrupp nucera’s success is not just a testament to our capabilities; it reflects Europe’s role as a critical hub for electrolysis innovation. European manufacturers, including thyssenkrupp nucera, Siemens Energy, and Nel, have been at the forefront of driving progress in the hydrogen economy. Europe has long been seen as the leader in electrolyzer technology, but this position is increasingly at risk.
According to BloombergNEF, four of the five largest electrolyzer manufacturers are Chinese. These companies dominate their domestic market, scaling rapidly with projects that are exclusively Chinese. Meanwhile, Europe has comparatively fewer large-scale projects underway.
This can become a problem: the current phase of the hydrogen market is critical for building experience, optimizing supply chains, and achieving economies of scale. Without sufficient GW-scale projects, European manufacturers risk falling behind. The ability to compete globally in the coming years will depend on the experience gained today.
Our Opportunity: Scaling Demand for Green Hydrogen
To secure its position as a global leader in green hydrogen, Europe must act decisively. This means fostering a supportive environment for domestic projects and ensuring that European manufacturers have the opportunities they need to grow. Key actions include:
Strengthening Policy Support: Fast-track the implementation of RED III, REFuel EU Avaiation and NZIA. Transparent and consistent regulations are essential for building investor confidence and accelerating green hydrogen development.
Creating Lead Markets: Implement binding mechanisms to stimulate growing demand for products manufactured using green hydrogen. Specific sectors and public procurement should be mandated to prioritize such goods.
Continue and strengthen existing instruments: Leverage tools such as greenhouse gas (GHG) quotas in transportation (e.g., for the use of hydrogen in refineries), the European Hydrogen Bank, and H2Global to drive market adoption.
Green Hydrogen: Let’s lead the transition
The stakes have never been higher. Green hydrogen is not just a solution for decarbonization; it’s a pathway to energy independence, economic resilience, and global leadership. Europe has the expertise, the ambition, and the industrial base to lead this transition. Maintaining this leadership demands bold action, targeted investments, and unwavering commitment to scaling the technologies that will define the future of energy.
At thyssenkrupp nucera, we are proud to be at the forefront of this journey. Together with our partners and stakeholders, we will continue to innovate, deliver, and lead – because the future of green hydrogen depends on it.
The time to act is now – together, we can shape the future of a sustainable, hydrogen-powered world.
