Niels-Arne Baden has a problem: the factory he’s building for Green Hydrogen Systems is too small. Plans for the Denmark site to be one of the largest for assembling the machines that make hydrogen from electricity were finalized about a year ago. But demand for those electrolyzers is growing so fast that Baden’s now planning to double its size.
“When I joined this company in 2014, there was no market,” Baden said. “Then last year, it was ‘Kaboom!’, and we were up to our ears in opportunities.”
The Danish company isn’t alone. Governments, energy giants, automobile companies and lobbying groups say hydrogen use is pivotal for cutting greenhouse gas emissions quickly enough to prevent the worst effects of climate change. That’s triggered a global race to stake claims in what could be a $700 billion business by 2050, according to BloombergNEF.
The European Union aims to push as much as 470 billion euros ($550 billion) toward hydrogen infrastructure; China, Japan and South Korea will all likely use hydrogen to achieve recent pledges to slash emissions; and Saudi Arabia plans a $5 billion hydrogen-based ammonia plant powered by renewable energy. “It’s countries going against countries to lock in market share,” said Gero Farruggio, head of renewables at research firm Rystad Energy. “We call it ‘the hydrogen wars’ because of the way governments are racing to subsidize these projects to be a leader.”