Three technologies set to disrupt the hydrogen market | Net Zero Technology Trends 2025

In the second issue of our net zero technology trends series for 2025, Emma Swiergon looks at the most potentially disruptive technology trends she’s come across in the hydrogen space recently.

The energy sector is transitioning away from fossil-fuels towards a low-carbon, decentralised energy system with high levels of variable renewable energy. Low carbon hydrogen emerges as a key player, offering solutions for hard-to-electrify industries like heavy transport and heat-intensive sectors, while providing energy storage to balance renewable intermittency. Hydrogen is crucial in the UK’s journey to becoming a clean energy leader.

Hydrogen also serves as a feedstock for synthetic fuels, such as methanol, methane, and aviation fuel, made from green hydrogen and captured CO2. These e-fuels mimic fossil fuels and can seamlessly integrate into existing energy systems, often requiring minimal changes. They provide a ready market for green hydrogen and offer a low-carbon, retrofittable solution for on-site power generation, aiding in the decarbonisation of current industrial sites and a means for reducing the emissions of the maritime and aviation sectors.

Our team of experts works with partners across the energy industry, from startups to top global energy firms, to identify and assess emerging technologies and help businesses understand the potential application and bottom-line impact of technology trends. Our early access to new technology keeps us at the forefront of the energy transition. Here I lay out some of the most promising developments we’ve observed recently.

1. Electrolyser innovations reduce consumption of critical minerals

Mineral demand for clean energy technologies is forecast to double by 2030, whilst tripling in the scenarios that meet net zero. Critical minerals are integral to the designs of most current electrolyser technologies: nickel in alkaline electrolysers; platinum and iridium in proton exchange membrane (PEM) electrolysers; rare earth metals like lanthanum, yttrium and zirconium in solid oxide (SOEC) electrolysers.

Global electrolyser manufacturing capacity is currently dominated by alkaline electrolysers – 85% of which is manufactured in China – contributing approximately two-thirds of the 80 GW of the total global electrolyser manufacturing capacity. The rest is mostly PEM, followed by AEM and SOEC.

These critical minerals expose electrolyser technologies to supply chain risks, price fluctuations, and supply issues. With around 90% of rare earth metal refining in China, countries like the UK are vulnerable.  2024 UK Criticality Assessment found that 34 minerals out of the 82 candidate materials assessed are ‘critical’.

Electrolyser innovations that reduce the consumption of critical minerals are therefore becoming an area of increasing focus. Notable recent technology developments include Canadian company Cipher Neutron who achieved a record Anion Exchange Membrane electrolyser stack efficiency of 94.4%. Their AEM electrolyser is also PFA and iridium-free. Swedish startup HyMeth also launched a 25 kW precious metal-free alkaline system with a 74% stack efficiency – claimed to be the highest efficiency on the market – and a 10% improvement on their previous 5 kW system. Toshiba partnered with Bekaert to commercialise Toshiba’s membrane electrode assembly technology that reduces iridium use in PEM electrolysers by 90%.

2. Researchers are exploring alternatives to forever chemicals in PEM

Per-and polyfluoroalkyl substances (PFAS), known as “forever chemicals” are used in membranes for all PEM (proton exchange membrane) electrolysers and fuel cells, as well as in balance-of-plant equipment. PFAS do not break down in the environment, raising concerns around their impact on ecosystems and human health.

The European Commission intends to ban the use of PFAS in consumer products, with exemptions for essential industrial uses. If the ban applies to hydrogen production, it will threaten the European hydrogen value chain, as suitable alternatives to PEM are not yet widely available. The European Commission has called for proposals for projects that focus on understanding the potential PFAS emissions in water electrolysers, and fuel cells under product use. Funding will be provided under the Clean Hydrogen Joint Undertaking.

Researchers are starting to look at alternatives to PFAS for PEM, and the impact of PFAS across the hydrogen value chain. TNO is collaborating with research institutions and companies to identify new technologies and materials for PFAS-free electrolysers. Additionally, they aim to assess to what extent PFAS’s are currently used in the hydrogen chain, the technology innovations required to reduce dependence on PFAS and how the entire chain can operate without PFAS in the future are developing a prototype of a fluorine-free membrane for PEM electrolysers.  In Germany, the GIRAFFE (Generic Investigation Regarding Alternative Fluorine-Free Electrolytes for Fuel Cells) project is exploring hydrocarbon polymers as an alternative to PFAS. The project began at the start of 2024 and will run to the end of 2027.

NZTC project spotlight

NZTC awarded a share of £500,000 in funding to three UK next-generation electrolyser developers. Clyde Hydrogen Systems’ decoupled electrolysis technology reduces costs by producing hydrogen and oxygen separately at different times and rates; Aqsorption’s high pressure membraneless electrolyser reduces reliance on rare earth minerals whilst boosting efficiency by capturing energy from high-pressure oxygen output; Latent Drive’s SeaStack direct seawater-to-hydrogen electrolyser aims to produce hydrogen offshore near energy supply at wind farms, reducing costs.

3. Hydrogen production in marine environments gains momentum

As offshore renewable energy grows, grid management struggles will lead to increased curtailment. Curtailment of offshore wind cost the UK over £1 billion in 2024, to either stop wind farm generation or increase gas power station output. Using excess renewable electricity to produce hydrogen can serve as energy storage for low generation periods. Electrolysers may be placed offshore at wind farms or on hydrogen platforms, with hydrogen transported via pipeline, reducing production costs for distances of over 100 km offshore.

Multiple projects are exploring the potential of offshore hydrogen production. ERM and Dolphyn Hydrogen launched the UK’s first offshore hydrogen production trials in South Wales, combining electrolysis, desalination and hydrogen production on a floating wind platform. The PosHYdon project aims to be the world’s first pilot producing green hydrogen on an operational North Sea gas platform and has moved to offshore trials after completing onshore testing.

NZTC’s Hydrogen Offshore Production Project (HOP2) assessed the feasibility of repurposing existing offshore assets for 500MW hydrogen production.

Numerous seawater electrolysers are being developed to support offshore hydrogen production. Startups such as Equatic, Evolve Hydrogen and sHYp are advancing this technology, whilst CNOOC announced trials of a MW-class seawater electrolyser.

What’s next for this emerging energy market?

To achieve the ambitious hydrogen goals set by both the UK and Scottish governments, we need to embrace a combination of renewable power and hydrogen production solutions with a systems thinking approach. We need to consider co-location of renewables and hydrogen considering both on and offshore real estate. NZTC’s Hydrogen Offshore Production Project (HOP2) has shown that producing hydrogen offshore is indeed possible on a large scale. However, we still have some work to do in optimising technology. The electrolysers on the market today are built for onshore use, and we don’t fully understand how they will perform in a marine environment.

Our unique geographical location and natural resources in the UK give us a fantastic opportunity to export hydrogen. Large scale hydrogen transport remains a key challenge, with technology innovation needed to unlock this critical step. In pipeline transport, for example, there are challenges around routing around existing infrastructure, maintaining pipeline integrity, addressing embrittlement concerns, and ensuring safety, operational efficiency, and traceability. The need to innovate in this space is particularly important given that pipeline transport of hydrogen is the cheapest way to transport hydrogen over circa 1,000 – 3,000km.

To make hydrogen export a reality and enhance its efficiency and reliability, we need to rapidly scale up metering and compression technologies and integrate them with digital technology. Although these technologies exist, they aren’t yet at the scale required for gigawatt (GW) transmission.

Hydrogen has the potential to offer large-scale centralized storage, providing flexibility and security in our rapidly evolving energy system. We’re currently studying the use of salt caverns and offshore storage, utilising oil and gas reservoirs for this purpose. However, there are currently only four commercial salt caverns used for hydrogen storage and no oil and gas reservoirs. Nearshore hydrogen storage is even less understood, but it could completely revolutionise our strategic approach to hydrogen storage across the UK.

Discover hydrogen technology predictions for 2025 and explore more from the net zero technology trends for 2025 series for more insights and updates.