EU Electrolysis Capacity to Reach 800 MWel by 2025 Amid Manufacturing Challenges and Strategic Policy Changes
The European Union's electrolysis capacity is projected to reach between 514 MWel and 800 MWel by the end of 2025, amid uncertainties in deployment forecasting and manufacturing challenges. With global capacity dominated by China, the EU is implementing public funding initiatives and new legislation to bolster 'Made in Europe' technologies and secure sustainable supply chains for critical materials. The sector's electrolyzer manufacturing capacity is currently 8.9 GWel/year, with expectations to increase to 50.2 GWel/year by 2030.
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The European Union's electrolysis capacity is expected to reach between 514 MWel and 800 MWel by the end of 2025, according to the European Commission's Clean Energy Technology Observatory. These estimates reflect significant uncertainty in deployment forecasting due to challenges in project reporting.
Global electrolysis capacity is projected between 4.0 GWel and 6.3 GWel, with China holding a dominant position. The EU's electrolyzer manufacturing capacity is approximately 8.9 GWel/year, with projections for 2030 nearing 50.2 GWel/year.
However, the sector faces competition from China, leading to lower pricing for electrolyzers. Public funding initiatives, including the Innovation Fund and the European Hydrogen Bank, are supporting electrolysis projects.
New legislation aims to prioritize 'Made in Europe' technologies to strengthen supply chains and reduce reliance on imports. The Critical Raw Materials Act has garnered over 160 applications, aiming to secure sustainable supply chains for critical materials essential to the EU's economy.
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