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Are modern electrolyzers ready to power global green hydrogen production? 

Tech companies, utilities, and governments worldwide are striving to meet the rapidly growing energy needs of AI data centers. In the U.S., many are investing in new energy projects before . One increasingly popular solution is hydrogen, particularly in Europe and China, which serves as both an energy storage and transport medium. Electrolyzers — devices that use electricity to split water into hydrogen and oxygen — play a central role in this process. The hydrogen produced can later be combined with oxygen from air in a fuel cell to generate electricity.

While hydrogen offers promising benefits, its use comes with significant safety challenges. Electrolyzers operate with hydrogen near ignition sources, increasing the risk of dangerous incidents. Proper installation, monitoring, and maintenance following strict safety procedures are essential to mitigating these risks and scaling operations.

How is demand for electrolyzers changing?

Unlike "gray hydrogen," which relies on fossil fuels, "green hydrogen" is produced using renewable energy to power an electrolyzer. Green hydrogen production is expanding worldwide, supporting both energy storage and transport, as well as industrial processes like , , and . 

According to the International Energy Agency's , installed electrolyzer capacity grew 900%, soaring from 0.6 GW to 4.9 GW from 2021 to 2025. Likewise, electrolyzer manufacturing capacity grew 600%, increasing from just 9 GW/year to 57 GW/year in the same time frame. Additionally, manufacturers have announced adding a total of 186 GW/year of electrolyzer manufacturing capacity by 2030, a huge increase over the 20 GW/year estimate issued in 2021. 

What trends and policies are shaping electrolyzer development? 

, driven by supportive policies and cost-effective manufacturing, positioning the country at the forefront of electrolyzer deployment. Production capacity in the region now far exceeds global demand, resulting in a surplus that could shape procurement strategies for years to come. Many projects scheduled for completion by 2029 are expected to source equipment from Chinese manufacturers because of cost advantages. 

However, uncertainties remain regarding whether imported units will meet U.S. safety and performance certification standards, such as UL, ISO, or National Fire Protection Agency (NFPA) requirements. Given variation in manufacturing practices around the world, developers are increasingly requesting factory witness testing and more stringent performance guarantees. Some project owners are also placing detailed design documentation — including part drawings — into escrow accounts. This precaution aims to ensure long-term serviceability even if suppliers exit the market or undergo restructuring.

In contrast, U.S. progress has been more measured. Most new projects focus on retrofitting conventional hydrogen production with carbon capture and storage (CCS) rather than pure electrolysis. Shifting energy policies have affected investor confidence and project timelines, leading to . Despite this, long-term prospects remain positive due to growing state-level interest. Developers continue to face challenges related to power availability, interconnection bottlenecks, and cost uncertainty. 

In 2025, the U.S. Senate passed a budget bill that eliminated many green energy tax credits from the previous administration. However, "safe harbor" provisions for wind and solar projects that begin construction before July 4, 2026, though this remains uncertain. Not all wind and solar projects involve hydrogen, but those that do are increasing demand for electrolyzers. 

As a result,  are gaining traction, prioritizing localized reliability and reduced distribution costs. These installations, however, raise questions about power provisioning and uptime, while larger sites face interconnection constraints as utilities adapt to growing demand for high-capacity hydrogen production.

The global hydrogen electrolyzer market stands at a pivotal moment. China's production capacity and cost leadership are redefining supply dynamics, while Western developers work to refine standards, quality assurance, and performance reliability.

Evolving ISO and NFPA standards

What are the common types of electrolyzers?

There are three commercial-scale electrolyzer technologies: alkaline, proton exchange membrane (PEM), and solid oxide electrolyzer cells (SOECs). Alkaline systems remain the dominant choice worldwide due to their maturity and lower cost; PEM electrolyzers are gaining popularity in grid-responsive and space-constrained applications; and SOECs — though still in early phases of commercialization — are being used in niche markets, offering high efficiency under specific industrial conditions.

How can we make electrolyzers safer? 

Hydrogen electrolyzers have been used for decades in manufacturing and energy, and there is a vast library of hydrogen safety procedures available across the globe. "" provides a valuable overview of many applicable standards. , the (CGA), the  (NREL), the , and the  have published safety procedures around the production, storage, and transport of hydrogen, hydrogen electrolyzers, and hydrogen fuel cells. These procedures are crucial to maintaining safety in hydrogen operations, but additional measures must be taken to help reduce the chance of electrolyzer malfunction or failure.

Regulatory frameworks are also catching up to the rapid pace of commercialization. A new  was published in July 2025, updating system design and pressure management guidelines, while revisions to "" are expected in 2026. These developments reflect growing international alignment on hydrogen safety and testing protocols — a crucial step in supporting global trade and investor certainty. 

Nonetheless, hydrogen leaks can be extremely dangerous, causing fires and even explosions. Electrolyzers can leak internally or externally, requiring proper venting and regular inspections to ensure safe operation. Hydrogen can also embrittle (weaken) certain metals or permeate plastics and composite materials, creating another source of risk in storage and transfer. 

With so many possible points of failure, it's critical for plant operators to understand where their safety and maintenance efforts can be focused. Several industry risk assessments and testing methods can be deployed during the planning, building, and operational stages of electrolyzer projects.

• Technical due diligence: Ģ��tv advises project developers, financial institutions, and other investors by reviewing technical documentation associated with the design, engineering, and construction of green hydrogen plants, as well as the conversion of existing "gray" hydrogen facilities to "green" operations.
• Plant construction: Ģ��tv provides support during construction and initial operations of plants to help minimize delays and disputes and confirm facilities are delivered and perform in accordance with design specifications.
• Probabilistic risk assessments: Using known failure statistics for hydrogen electrolyzers, lines, and fittings, probabilistic risk assessments can guide plant operators on maintenance schedules, safety procedures, and even plant setup and general operation. For example, the statistical projected life of a valve in a hydrogen line can be used to determine the frequency of maintenance checks and other safety procedures. Similar data exists for commonly used electrolyzers and can also be used to inform plant operation.
• Electrolyzer reliability testing: Electrolyzer reliability specifically also remains a chief concern, particularly for newer technologies where long-term operational data are limited. Developers report that durability, efficiency drift, and component availability still influence procurement decisions.
• Monitoring and sensor placement: In many cases, improved sensor integration and safety monitoring are essential to de-risk operation and support compliance with emerging standards. However, knowing where to place these sensors and how often to monitor them requires deep technical expertise of hydrogen systems. Computational fluid dynamics (CFD) studies can assist in identifying proper detector location.
• Metallurgical inspections: Careful considerations of the type of materials used can help avoid hydrogen embrittlement or permeation. Regular inspections can be used to identify failure of components in contact with hydrogen.
• Safety documentation review: In addition to the electrolyzer, such facilities include other auxiliary equipment. It is crucial to holistically consider risks across the entire plant and document safe operating procedures for steady-state and transient operating conditions, leveraging multiple subject matter experts when reviewing safety-critical documentation to address different perspectives.

The future of hydrogen electrolyzers

The global hydrogen electrolyzer market stands at a pivotal moment. China's production capacity and cost leadership are redefining supply dynamics, while Western developers work to refine standards, quality assurance, and performance reliability. Despite near-term headwinds in the U.S., the long-term outlook remains promising as technology matures, policy frameworks stabilize, and lessons from early projects inform the next generation of design and deployment.

In this transitional period, collaboration between manufacturers, project developers, and technical partners is a key building block to fulfilling the promise of hydrogen becoming a cornerstone of a secure and sustainable energy future.