Long-term plan by Siemens Energy for hydrogen technology

In a major stride towards hydrogen technology, Siemens Energy has unveiled a gigafactory for PEM electrolyzers in Berlin, in collaboration with Air Liquide. This development marks a significant milestone in Siemens Energy's active involvement in the hydrogen market.

The Berlin gigafactory, along with other large-scale projects in Europe and North America, is part of Siemens Energy's strategic push into the hydrogen sector. The focus of the Berlin gigafactory is on the production of PEM electrolyzers, a technology crucial for the large-scale production of green hydrogen.

Siemens Energy is partnering with major players such as Shell, RWE, and TotalEnergies on various hydrogen projects across Europe and North America. These projects aim to integrate green hydrogen production with renewable energy and industrial applications, with start dates ranging from mid-to-late 2020s.

While the hydrogen business is currently not profitable due to high startup costs and limited quantities, analysts expect it to move towards broader profitability as early as 2027/28, coinciding with the anticipated online date of several industrial electrolyzer projects in the gigawatt range.

The partnerships with Shell, RWE, and TotalEnergies are not limited to the Berlin gigafactory. However, they are not expected to directly contribute to the current profitability of Siemens Energy's hydrogen business. Instead, they represent strategic alliances that position Siemens Energy well to become a leading provider in the hydrogen market.

Despite hydrogen not being a significant contributor to Siemens Energy's profits at present, the company views it as an investment in the future. Power technology, services, and turbines currently drive profits for Siemens Energy. However, with political support through programs like the IPCEI in Europe and the Inflation Reduction Act in the USA, demand for hydrogen is expected to grow, making it a promising area for future growth.

The Berlin gigafactory, with its potential to provide capacities in the gigawatt range in the medium term, is a testament to Siemens Energy's commitment to the hydrogen market. As the world transitions towards renewable energy sources, the Berlin gigafactory is poised to play a crucial role in this transition, contributing to a more sustainable and green energy future.