Markets

RE Hydrogen’s electrolysers are suitable for several market segments spanning from energy storage, grid balancing, hythane fuel based power generation and transport applications. RE Hydrogen has signed contracts with established industrial partners for field trials in all these market sectors. As these markets grow RE Hydrogen will expand their operation for these applications.

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Market Segment 1: Onsite Hydrogen Production

Currently the majority of the hydrogen market is served by gas supply companies. RE Hydrogen is well positioned with their collaboration with BOC to introduce low carbon hydrogen into the market via BOC’s distribution network.

RE Hydrogen will supply an electrolyser to BOC as a pilot under the RABH2 project (www.rabh2.co.uk) to produce low carbon hydrogen at St Helens and refill hydrogen into cylinders. The aim of this RABH2 project to create the UK's first end to end supply chain network for very ow carbon hydrogen production, distribution and utilisation.

The estimated market size is £500 million/year in the UK for this market segment. A relatively bigger and separate market exists for oxygen as well.

Market Segment 2: Gas compression

RE Hydrogen’s novel compressors can be used in all of the markets related to electrolysers and fuel cells. This compressor can also used in traditional compressor markets.

There are approximately 5000 petrol stations and 5500 electrical sub-stations in the UK, each of which could potentially install hydrogen compressors for energy storage applications.

The fast expanding fuel cell market will need green hydrogen supply and compressed gas storage i.e. the UK's portable generator market is estimated at £100million (Frost & Sullivan); Pike Research estimate global portable fuel cell market of $2.3bn by 2016.

Market Segment 3: Smart Grid and Energy Storage

It is evident from the latest records that a significant amount of surplus electricity exists on the grid at times due to the mismatch between the demand vs supply and due to the grid constraints. A large amount of wind power is concentrated in offshore wind farms in the UK within a particular area. This creates a situation where a large amount of excess energy cannot be despatched from these wind farms to the rest of the country due to the grid’s inability to absorb power at a given time.

It is estimated that for 20GW wind power up to 4.7- 8.1% energy could be termed as surplus energy. It is also estimated that up to 22 - 29% energy could be termed as surplus for 30GW wind turbine and up to 39-43% energy could be surplus for 40GW wind turbine.

This surplus, cheap electricity would be available to electrolysers for mopping up the excess generation. If this electricity is stored and later on used to supply 24/7 electricity, the wholesale electricity price will become more stable while providing a crucial service for grid stability. The hydrogen is produced as a by-product of this grid balancing function which has a significant commercial value for energy storage and transport fuel.