Germany-based energy technology company Siemens Energy has announced a joint venture with Air Liquide, a French supplier of industrial gases and services, to produce industrial-scale renewable hydrogen electrolyzers in Europe.

Siemens Energy announced that the joint venture will be headquartered in Berlin, Germany, and will begin hydrogen electrolyzers production by the second half of 2023, aiming to achieve an annual production capacity of 3 GW by 2025.

The collaboration aims to establish a sustainable hydrogen economy while fostering an ecosystem for electrolysis and hydrogen technologies in Europe.

Air Liquide will have a 25.1% stake, and Siemens Energy will hold the majority stake of 74.9% in the venture’s muti-gigawatt factory that produces electrolysis modules (stacks).

The electrolysis modules used in hydrogen production will be based on proton exchange membrane (PEM) technology.

The strategic partnership will benefit from a portfolio of hydrogen projects combining pipelines of both companies to bolster the availability of competitive renewable hydrogen by targeting large industrial-scale hydrogen projects in collaboration with customers.

The Berlin-based factory will cater to the customer base of the rapidly growing market in France and Germany by supplying stacks to both companies. The two companies have also agreed to collaborate in research and development capacities to co-develop next-generation electrolyzer technologies.

Air Liquide’s Normand’Hy electrolyzer project will be the first project to be executed under the joint venture, with a capacity of 200 MW in the first phase— and would be located in Normandy, France. The companies announced that the electrolyzer systems for the project would be assembled in France.

The collaboration is also mulling applying for funding of large projects under the European Union’s Innovation Fund, Green Deal, and Important Project of Common European Interest (IPCEI)-scheme for hydrogen, funded by the European governments.

Companies across the globe are adopting electrolyzer technologies to produce clean hydrogen. Earlier this month, India-based Greenzo Energy announced allocating ₹3-4 billion (~$38.68 – $51.57 million) to deploy a 250 MW electrolyzer factory by 2025. The renewable energy company said it would also invest over ₹70 million (~$902,541) in PEM technology to support hydrogen production.

In April 2022, National Thermal Power Corporation Renewable Energy (NTPC REL) invited bids to select electrolyzer technology providers for participation in NTPC’s green hydrogen tenders that would be floated in the next two years. The winning bidders would supply the tender with either PEM projects of 400 MW or non-PEM projects of 600 MW.