Generic Hero BannerGeneric Hero Banner
Latest Market News

Ohmium leans on automotive synergies for electrolysers

  • Spanish Market: Hydrogen
  • 02/07/24

US-based electrolyser maker Ohmium is developing proton exchange membrane (PEM) electrolysers and is planning to hike output at its main factory in India, where it seeks to capitalise on advantages in manufacturing costs and access to a growing market for renewable hydrogen. Argus spoke to chief executive Arne Ballantine about the firm's technology, its growth strategy, and views on Indian and global hydrogen markets. Edited highlights follow:

What is your current and planned manufacturing capacity?

We used our most recent $250mn investment about a year ago to set up factory space for 2 GW/yr and brought in all the long lead tooling to support that. Now we'll fill up the factory as we need, buying the shorter lead pieces of equipment that might take only 6-8 weeks to buy. We'll probably be at 30-50MW in the last quarter of this year, tracking towards 10 times that by the end of next year. So, 500MW per quarter by the end of 2025, which is the full 2 GW/yr. And because we factory mass-produce our electrolysers, it's easy for us to add capacity — then we'll start looking at doubling capacity from there.

Why did you choose India for your factory?

India has a very robust automotive supply chain, and cars are perhaps one of the products in our world that have best captured high-volume manufacturing. We set up our supply chain to tie into this, so we're working with similar types of companies when we buy many of our materials and components, such as sheet metal enclosures [for the electrolysers]. We designed our product so the cabinets and all the components like pumps and plumbing are essentially at an automotive scale. That gives you a very good cost basis. In India now, the electronics business is starting to grow as well — not only consumer products, but all the way to the semiconductor chip level. There is a great talent pool of engineers and manufacturing folks to hire in order to build out your manufacturing base and there's also a wonderful set of suppliers.

What do your electrolysers cost today?

It depends on the order volume, but we certainly see Ohmium's total installed solution costing $1,200/kW or less, which on a total installed system basis is cost-competitive with alkaline. The equipment contains almost everything you need. You only have to add a few things at the end just to put it together. For this design, the added engineering, procurement and construction (EPC) cost is maybe as low as 10pc. Maybe in places like the US it might be 15pc, maybe 20pc. If you take the equipment cost and add maybe only 10pc or 15pc for EPC costs, you can stay below $1,200/kW. A big focus for us is to figure out how to keep the added EPC cost down.

Has the recent materials cost spike abated yet?

Everyone felt some increase in costs from inflation. There was a short blip in electronics during the Covid-19 pandemic that's largely over now and I don't see it coming back. If anything, I see the inverse as EVs [electric vehicles] are in a little downward cycle so a lot of power electronics are looking for a home, which is a good thing for electrolysers.

Can you cut costs further to compete with alkaline?

As I mentioned earlier, our total solution is cost-competitive with alkaline today on an apples-to-apples basis. We know exactly how to bring the cost down over time — I've worked on this for 24 years. It's not cost that keeps me up at night — it's how we help everyone to build out the electrolyser projects. PEM will win against any other technologies — it's the most efficient technology, and Ohmium makes the most efficient PEM. My co-founding team and I had experience with PEM, alkaline and solid oxide. We knew that alkaline would have limitations in coupling directly to renewables and the same challenge with solid oxide. You can cycle PEM up and down very hard, which is something you can't do with alkaline or solid oxide, and that is a huge added value — in fact, you need it in order to couple with renewables. Plus, PEM is very energy dense. We'll ship units this year containing 3MW, and those units will be 4MW next year, and we'll continue to increase that density.

Those are made up of 7-8 half-megawatt modules that we cluster together so you can still run the electrolyser if a single one fails and more easily fix it. Alkaline also involves extra costs to raise the purity of the hydrogen output, which is typically 99pc compared with PEM's 99.99. And purification steps usually have an 80-90pc yield and 10-20pc loss of the hydrogen product. In 2020 or 2022, developers' understanding of how to run these simulations was not as sophisticated, but in 2024, everybody knows.

What about scarce materials needed?

PEM's number-one challenge is strategic supply chain constraints, such as with precious metal and membranes, but we set out to tackle that from day one and we're now very vertically integrated. Things like catalyst layers and plate coatings we're producing ourselves, rather than using an external supply chain. At this point, there's only a tiny bit of iridium needed. Original-recipe PEM used in aerospace applications might have allowed for only 2GW based on global iridium mining, but with today's supply of iridium we could make 100GW of electrolysers if you asked us to.

Which countries and sectors are you seeing orders from first?

We've already installed two projects in the US, one in India — with another one about to install — two in Europe and one in the Middle East. We've been focused on opportunities in Europe and we see it really starting to accelerate now. There are opportunities in the US, but it has taken everyone a while to understand how the Inflation Reduction Act is going to play out, and I think that's very reasonably delayed things. We've done a fair amount of work in India because it's like a second home for us, where we have a lot of operations. And we've seen attractive things in the Middle East. We've started with those four markets, but we also see great opportunities in Australia and South America.

When will you start work under your deal with Indian state-controlled power utility NTPC and what's driving Indian demand?

We're starting to see the first NTPC projects, and I expect announcements in the second half of the year. We'll have to wait and see because India has policies to settle. Green hydrogen offers a chance to expand economies in countries that don't have native hydrocarbons. Refineries are a great example, because instead of using some hydrocarbons to make hydrogen, you can inject green hydrogen and then redeploy that 100-200MW of hydrocarbon value elsewhere in your economy. If India's goal is to put more energy into its economy and grow its total economy size, it can either import more hydrocarbons — which impacts its trade deficit — or, with relatively modest investment, set up 100-200MW of renewable hydrogen production at each refinery. India has been on that track since prime minister Modi made his Hydrogen Mission speech back in 2021.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

US DOE cancels H2 hub community meetings: Update


05/02/25
05/02/25

US DOE cancels H2 hub community meetings: Update

Updates with comment from California hydrogen hub Houston, 5 February (Argus) — The US Department of Energy (DOE) has canceled meetings between planned hydrogen hubs and the public, casting further uncertainty over how the multibillion-dollar ventures will proceed as the administration of President Donald Trump pauses clean energy initiatives. California's Alliance for Renewable Clean Hydrogen Energy Systems (Arches) has informed members of the hub's Community Benefits Workgroup that it was canceling a meeting scheduled for 13 February. "In accordance with the recent Department of Energy memo issued last week, mandating that we stop all community benefits-related work, we will be pausing our biweekly Hub-level Community Benefits calls as we work with DOE to evaluate how this guidance affects Arches' community engagement strategy moving forward," Arches said in an email seen by Argus . Arches is one of seven proposed regional hydrogen production hubs around the US that were designated by former president Joe Biden to receive billions of dollars in federal funding. A total of about $170mn was announced last year and in early January to be paid out as first tranches of government funding to the seven hubs to initiate planning and development activities. The status of those payments and future disbursements have been thrown into doubt since Trump ordered a pause on payments related to the Inflation Reduction Act, an executive decision that a judge then ordered temporarily halted . Arches continues to work during a temporary pause in community engagement meetings, Arches chief executive Angelina Galiteva said in an email to Argus . "We recognize that programmatic reviews are a standard part of administrative transitions and remain confident in the ongoing progress of Phase 1 activities," said Galiteva. Community organizers in the northeast that have protested the Mid-Atlantic Clean Hydrogen Hub (Mach2) were also notified that an upcoming webinar hosted by the DOE's Office of Clean Energy Demonstrations about Phase 1 funding awards have been canceled. "We are postponing this briefing until further notice," said an e-mail sent out to those who had registered for the 13 February briefing. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Spain calls for cautious transposition of EU H2 package


05/02/25
05/02/25

Spain calls for cautious transposition of EU H2 package

Madrid, 5 February (Argus) — Spain must be cautious in its transposition of EU hydrogen legislation, according to the country's recently appointed secretary of state for energy Joan Groizard. "We can do this in a hurry and meet the formal requirements or we can do it in a way that we roll out the legislative framework [that] renewable hydrogen really needs in this country," Groizard said at the Second National Green Hydrogen Congress in Huelva. The EU has set a May deadline for member states to transpose the Renewable Energy Directive RED III into national laws. Trade association Hydrogen Europe's chief policy and market officer Daniel Fraile said many countries are "quite delayed" in this process. Spain still has lots of "homework to do" in transposing EU directives related to hydrogen and wishes to "share it with everyone," through sector participation, according to Groizard. Part of the "homework" that EU member states need to complete by May includes firm targets for hydrogen demand for transport and industry in 2030, which the bloc's Directorate-General for Energy broadly estimates at 3mn-6mn t/yr. The European Commission Energy Platform Task Force's Carlos Alvarez Aguilera said these, together with the support provided by RED III targets for renewable fuels of non-biological origin (RFNBOs) to make up 1pc of the final consumption of energy and 1.2pc of marine fuels by 2030, will provide "certainty to investors" that renewable hydrogen is a "tangible reality." Other EU directives that form part of the EU legislative package concerning hydrogen and that require transposition include the fourth renewable gas package, which must brought in by member states by August 2026. By Jonathan Gleave Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

S Korea to invest $89.5mn in net zero, energy security


05/02/25
05/02/25

S Korea to invest $89.5mn in net zero, energy security

Singapore, 5 February (Argus) — South Korea today announced plans to invest 129.3bn won ($89.5mn) this year in new research and development projects in the energy sector, to achieve carbon neutrality and ensure domestic energy security. About W78.7bn will go to 41 projects in the first round of funding this year. These projects will focus on technologies related to "carbon-free" energy such as renewable energy, nuclear power, and hydrogen, among others, South Korea's energy ministry (Motie) said on 5 February. The ministry will also invest W46.2bn to improve energy efficiency and in power systems, especially given surging power demand driven by artificial intelligence. Motie also plans to invest W56.9bn in securing technologies such as next-generation solar power, flexible operation of nuclear power plants, and large-capacity water electrolysis facilities, to "respond to the climate crisis". South Korea's science ministry in December 2024 unveiled plans to invest W2.75 trillion in technologies this year to respond to climate change, which included renewable energy technology and "carbon-free" technologies like nuclear power. It is unclear if the latest W56.9bn commitment is part of the W2.75 trillion announced last year or a separate investment. South Korea in December 2024 also announced plans to invest W450 trillion won in green finance by 2030, then acting president and prime minister Han Duck-soo said before he was impeached later that week . This made deputy prime minister and finance minister Choi Sang-mok the current acting president and acting prime minister. President Yoon Suk Yeol was impeached on 14 December and has since been arrested. If Yoon is removed or resigns, a presidential election must be held within 60 days, instead of the original election date in 2027. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

‘Now more than ever’ for European H2


04/02/25
04/02/25

‘Now more than ever’ for European H2

Trump's return to office and uncertainty over climate policy in the US could catalyse H2 growth in Europe, strengthening its decarbonisation drive Paris, 4 February (Argus) — Donald Trump's return to the White House last month has brought further uncertainty for the US hydrogen sector. But European industry participants and policymakers have been eager to demonstrate a ‘now more than ever' mentality in the face of a US policy shift. Hydrogen industry events around the world over the past year have been characterised by a rather gloomy mood, as companies scale back investment, projects are cancelled or delayed, and regulations and subsidy mechanisms fall further behind schedule. Trump's plans to roll back climate legislation have added to the uncertainty , while a feeling persists that "climate is not a priority" because of the global political situation, French hydrogen investment firm Hy24's chief investment officer, Amir Sharifi, acknowledged at last week's Hyvolution conference in Paris. But Sharifi noted that more than being merely a decarbonisation tool, "hydrogen is a lever for energy and food security", which strengthens its case. In any event, the "renewables trend is far stronger than Trump" and much larger than the US, Hy24 chief executive Pierre-Etienne Franc said. He noted that other regions have "a vested interest" in advancing decarbonisation goals and pointed to opportunities for countries in South America and Africa, but also for China as the world's largest manufacturer of clean energy technology. For the EU, Trump's return could present an opportunity to strengthen its leadership in the clean energy agenda. Europe takes "climate very seriously", the European Commission's principal advisor at the directorate-general for energy, Tudor Constantinescu, stressed at the event, claiming that Brussels' commitment to strict regulations had made Europe the world's leading hydrogen market. And at Spanish gas system transmission operator Enagas' Hydrogen Day on 29 January, Spain's prime minister, Pedro Sanchez, pledged to go "green, baby, green" — a reference to Trump's "drill, baby, drill" mantra. The EU's Competitiveness Compass, published the same day, was widely praised by delegates at the Paris event, even as it makes few direct references to hydrogen. The document outlines a roadmap towards simplifying regulations, permitting rules and state aid to strengthen decarbonisation and industrialisation efforts. It is to be followed soon by more detailed action plans for key energy-intensive sectors, such as steel and chemicals production. The EU is also set to refine its approach towards the hydrogen sector specifically, after meeting participants in January, industry group Hydrogen Europe chief executive Jorgo Chatzimarkakis said. Brussels will look to create "lead markets" for key offtake sectors, such as refineries, steel and fertilisers, he said. Still, delegates were clear that major challenges persist. With production costs for renewable hydrogen still many times higher than for conventional supply, project financing remains hard to come by, they said. For many firms, "there is now less money than before for [the] energy transition", which makes smart use of resources all the more important, French industrial gas firm Air Liquide's hydrogen energy world business line vice-president, Erwin Penfornis, said. But some delegates pointed to silver linings on the cost front, too. Sharifi said a downward trend in interest rates is starting to take shape, potentially paving the way towards improved financing conditions in the coming months. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more