On-Site Hydrogen Generation in US Market Outlook

On-site hydrogen generation - On-site electrolysis reduces transport needs and supports station sustainability.

On-site hydrogen generation - On-site electrolysis reduces transport needs and supports station sustainability.

On-site hydrogen generation is the process of producing hydrogen fuel directly at the point of use, rather than at a large, centralized plant for later transport. This model is a key alternative to traditional hydrogen supply chains, which rely on the costly and complex transportation of hydrogen in compressed gas tube trailers or cryogenic liquid tankers.

Technologies for On-site Generation
How it works: An electrolyzer consists of a cathode and an anode separated by a membrane. When an electric current is applied, water at the anode is split into protons and oxygen gas. The protons travel through the membrane to the cathode, where they combine with electrons to form hydrogen gas.

Advantages: If the electricity comes from renewable sources (like solar or wind), the process produces "green hydrogen," which is completely carbon-free. The technology is scalable and can be used to produce hydrogen on demand.

Disadvantages: The efficiency and cost of the process are directly dependent on the cost of electricity.

Steam Methane Reforming (SMR): This is a more mature and currently less expensive technology that produces hydrogen from natural gas.

How it works: Methane reacts with high-temperature steam in the presence of a catalyst to produce hydrogen and carbon monoxide. The carbon monoxide is then converted into carbon dioxide and more hydrogen.


Advantages: This method is currently more cost-effective for large-scale production. It is a well-understood and reliable technology.

Disadvantages: It is a fossil fuel-based process and produces carbon emissions, which makes it less attractive from a sustainability perspective unless combined with carbon capture and storage (CCS) technology to produce "blue hydrogen."

Advantages of On-site Generation
On-site generation is seen as a key strategy for accelerating the adoption of hydrogen fuel. Its primary benefits include:

Elimination of Transportation Costs and Logistical Challenges: On-site generation bypasses the need for high-pressure or cryogenic transportation, which is one of the most significant costs and safety risks in the hydrogen supply chain. This is particularly beneficial for remote locations or areas with limited infrastructure.

Supply Independence and Reliability: By generating its own hydrogen, a facility or fueling station is no longer dependent on a third-party supplier for deliveries. This ensures a continuous, on-demand supply and reduces the risk of supply chain disruptions.

Reduced Carbon Footprint: For systems that use electrolysis powered by renewable energy, on-site generation allows for the production of "green hydrogen," eliminating the emissions associated with both production and transportation.

Scalability and Flexibility: Modular on-site generators can be sized to meet the specific needs of a facility or a fleet. As demand grows, additional modules can be added to increase production capacity.

Enhanced Safety: By reducing the need to store large quantities of high-pressure hydrogen in tanks or trailers, on-site generation minimizes the safety risks associated with hydrogen storage and handling.

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