Siemens Energy, the German-based energy technology provider, along with Air Liquide, the French-based industrial gases supplier, are setting up a joint venture (JV) to produce industrial-scale green hydrogen electrolyser capacity in a bid to make green hydrogen more competitive more quickly.

The production of green hydrogen electrolysers by the JV is anticipated to begin during the second half of 2023 and result in an eventual annual capacity of 3GW by 2025. The JV is split with Siemens the majority holder at 74.9% and Air Liquide holding the remaining 25.1% of the new German-based company. Green hydrogen is currently far less cost-effective than fossil fuels, which has hampered its early adoption by many industries. This JV, along with other planned large scale electrolyser investments, is looking to deliver improved competitiveness through industrial scale deployment of green hydrogen.

The announcement of this JV follows the recently signed joint declaration by European electrolyser manufacturers to meet the European Union’s clean hydrogen goals, delivering 17.5GW of annual European electrolyser capacity by 2025 (a tenfold increase). Announced plans for green hydrogen investments in the EU could make it a dominant player in the global hydrogen market over the next five to ten years.

The JV factory in Berlin will supply both parent companies with green hydrogen as well as the rapidly growing market. The first electrolyser systems are planned to be assembled in France with a capacity of 200MW expected in the first phase.