Inside Green Innovation: Progress Report - Third Edition highlights:
- Hydrogen technology is rapidly advancing, with a growing number of established and new players shaping its development by overcoming technical challenges and constraints necessary to fully exploit hydrogen as a clean and sustainable energy and feedstock source worldwide.
- Cost reduction, improved efficiency and safety enhancements throughout the hydrogen lifecycle will play a significant role in hydrogen becoming a global energy source.
- Hydrogen technology innovation leaders are Germany, Japan, the US, and South Korea.
- The technology is diverse: existing patents cover multiple hydrogen production techniques, such as alkaline, polymer electrolyte membrane (PEM) and solid oxide electrolysis for ‘green hydrogen’ alone, all experiencing increased activity.
- Trends in hydrogen storage patent filings align with those related to production, indicating simultaneous development.
Hydrogen continues to be promoted as an essential part of the transition to green energy, based on the promise that it can be generated on a large scale using clean energy, providing cleaner hydrogen feedstock to industry, and because it can be used in clean applications, such as hydrogen powered electric cars. This latter application may be the most widely recognised, with hydrogen fuel cells presenting a possible alternative to electrochemical batteries to provide the power for electric cars.
According to Hydrogen Insights 2023, a report published by the Hydrogen Council (a global initiative of 132 investment companies who aim to develop the hydrogen economy), and McKinsey & Company (a management consulting firm), more than 1,000 hydrogen project proposals have been announced globally, with USD 320bn of direct investment into hydrogen value chains throughout 2030. European entities have received 35 percent of this investment, establishing Europe as the global leader in hydrogen project proposals, followed by Latin America and North America entities receiving about 15 percent. Giga-scale project proposals account for 112 of the project proposals. Of these 112 proposals, 91 are renewable and 21 are low-carbon hydrogen.
However, there are many considerable obstacles facing hydrogen, in production, storage and use. Consumer perception of hydrogen is also a challenge because hydrogen as a household energy source is not widely accepted by the public, arising from its somewhat dubious reputation as a dangerous element. Overcoming these obstacles will be crucial if hydrogen is to realise its potential to play a key role in reaching net zero.
Innovation in hydrogen production
Global production of clean hydrogen is currently less than 1 Mt H/year. However, with current investments, global clean hydrogen supply is expected to be 38 Mt H2/year by 2030. That said, the International Energy Agency (IEA), as reported in Global Hydrogen Review, suggests that energy providers must produce 200 Mt H2/year of clean hydrogen by 2030 to be on track for net zero emissions by 2050.
This has led to a real drive for efficiency innovation in hydrogen production methods to meet the current demand and to stay on track to reach net-zero targets.
Patent filings related to hydrogen production technologies began increasing in the mid-1990s. Notably, this was when Iceland unveiled its plan to become a hydrogen economy (the first of its kind) before 2030, and Shell formed their hydrogen division. Filings rose steadily year-on-year until they plateaued in 2005 and dipped slightly in the run up to 2018, where data shows a second filing surge. In 2021, the most recent year in which complete reporting data is available, filing numbers have reached a record high (Figure 1). In view of wider momentum around clean hydrogen, a continuing upward trend in patent filings seems likely.
Figure 1: Thirty-year trend - global priority filings – hydrogen production
(Priority filing = the first time a patent application for a unique invention has been filed (the first filing))
Filings by territory
The highest number of new patent filings related to innovation in hydrogen production are coming from Japan, followed by South Korea, the US, Europe and China (Figure 9).
Figure 2: Ten-year trend - applications by territory- hydrogen production
When the IEA released its special report on The Future of Hydrogen for the G20 in 2019, only France, Japan and Korea had hydrogen strategies, establishing themselves as innovation forerunners in the race to a hydrogen future, which is reflected in the global patent filing data (Figure 2).
Japan has historically been interested in developing hydrogen for use as a cleaner, alternative energy source, installing the world’s first hydrogen station for fuel cell cars in the early 2000s. As a result, in 2004 there was a surge in Japan-originating, hydrogen-related patent application filings, which contributed to an increase in patent filings globally (Figure 1).
The U.S. Department of Energy (DOE) aims to accelerate innovation to facilitate more abundant, affordable, and reliable clean energy within the decade, and to assist in reaching their goal of net-zero carbon emissions by 2050. The DOE established the first Energy Earthshot – ‘Hydrogen Shot’ – in 2021 to reduce the cost of clean hydrogen by 80 percent, to USD 1 per 1 kg in one decade, securing USD 400m in the 2022 budget (a 40 percent rise on the previous year). This is likely to drive a continued increase in US-originating hydrogen technologies over the next few years.
Filings by assignee
The ratio of unique patent applicants to total patent application filings has been steady over the past five years, with an average percentage difference of 35 percent each year, suggesting that innovation in hydrogen production technologies is not wholly dominated by a few key players, but instead is more widespread. Indeed, the data shows the regular appearance of new innovators.
Figure 3: Five-year trend - global priority filings and unique assignees by year – hydrogen production
(Patent assignee = the owner of a patent/application, also known as the ‘applicant’ (for a patent application), patentee (for a granted patent), or proprietor.)
Large multinational corporations, including Mitsubishi, AIR Liquide, Toyota, and Tokyo Gas, are among the top global patent filers in hydrogen production. Other high filers include specialist hydrogen production start-up companies, such as Chinese firm Sungrow Hydrogen and South Korean firm Kwatercraft. Over the last decade, the number of applications from the top filers seems to fluctuate, but the trend shows a collective increase in recent patent filings.
Entities operating in the chemical sector currently dominate when it comes to hydrogen production innovation. Chemical-related hydrogen production technology has seen rapid innovation growth in recent years, compared to the comparatively slow and steady innovation relating to electrical and mechanical engineering sectors.
Looking a bit closer within chemical-related innovations, developments around materials, metallurgy and surface chemistry are most prevalent, with filings relating to surface chemistry showing a particularly notable surge in recent years.
Figure 4: Thirty-year trend - patent families by sector - hydrogen production
(Patent family = A set of patent applications and/or granted patents across multiple countries that protect the same invention and were filed by a common applicant.)
The hydrogen production rainbow
At present, there are many different methods and sources from which to produce hydrogen, including water, biomass, or fossil fuels (gas, coal, petroleum). Those in industry will be aware, depending on the energy source and production method, that hydrogen is assigned a colour (Figure 5).
Figure 5: Types of hydrogen production
Currently, grey hydrogen is more commonly produced than any other colour (prepared by steam reforming of natural gas, releasing CO2 as a by-product). However, as the world transitions from its historical dependence on fossil fuels, the hydrogen rainbow, particularly those colours negating the release of CO2, will play an important role in achieving net zero. Hydrogen demand could exceed 660 Mt H2/year by 2050, therefore it seems necessary for energy suppliers to produce more green hydrogen (prepared by electrolysis of water using renewable energy sources), or a close variant.
Green hydrogen
Since 2016, patent application filings related to green hydrogen have significantly increased year-on-year. We can expect the upward trend in patent filings to continue over the next decade, certainly as we approach 2030.
Figure 6: Thirty-year trend - global priority filings – green hydrogen production
The three most popular areas of innovation in electrolysis techniques related to green hydrogen production are:
- Alkaline – an alkaline medium is used to transport hydroxide ions between electrodes. The most commonly-used mediums are liquid (such as sodium or potassium hydroxide), although newer, solid alkaline exchange membranes are being developed.
- Polymer electrolyte membrane (PEM) – a solid, speciality plastic which transports protons generated at the anode (via the reduction of water) to the cathode where they combine with the circuit’s electrons to produce hydrogen.
- Solid oxide electrolysis – a solid oxide ceramic electrolyte that, when heated to a high temperature, selectively conducts negatively charged oxygen ions (O2-).
Data shows patent filings related to all three techniques are increasing, with each approach having its own advantages and disadvantages. Alkaline electrolysis and PEM solutions are growing at the fastest rate (Figure 7).
Figure 7: Twenty five-year trend - global priority filings for electrolysis methods - hydrogen production
Storage and infrastructure
Effective hydrogen storage and distribution technology is crucial to realise hydrogen’s potential, particularly as an energy storage medium. While hydrogen has the highest energy density per mass of any fuel, it also has the lowest energy density per unit volume due to its low ambient temperature density, leading to difficulties in transportation and storage.
Increasing energy efficiency, maintaining hydrogen purity, limiting hydrogen leakage, and reducing costs are the major challenges faced by innovators in hydrogen storage and distribution.
The innovation trends for hydrogen storage closely mirror those for hydrogen production, showing that the two technologies are developing in tandem.
Figure 8: Thirty-year trend - global priority filings – hydrogen storage
For storage and distribution, like hydrogen production, data shows the highest number of new patent filings are coming from South Korea, the US, Japan, Europe, and China.
Figure 9: Ten-year trend - global priority filings by territory - hydrogen storage and distribution
Applications of hydrogen
Hydrogen as a raw material feedstock in manufacturing processes is in high demand. To date, China alone is responsible for a sizeable amount of the world's ammonia and methanol production, while India has substantial demand for iron and steel manufacturing. The Asia-Pacific area accounts for half of the world's industrial hydrogen consumption, however this hydrogen is mostly grey and brown hydrogen produced by carbon emitting methods. Using green hydrogen offers an opportunity to decarbonise these industries.
Of course, innovation in hydrogen applications is focused both on the decarbonisation of industry and domestic use. The UK government has proposed a mandate to incorporate hydrogen into existing gas boilers for domestic use, requiring all domestic boilers be ‘hydrogen-ready’ from 2026. Innovation will be required to ensure the effective and safe delivery of a hydrogen heat grid conversion and support protection for consumers.
Fuel cells for vehicle applications is another popular area gaining traction for hydrogen use as fuel. Fuel cells commonly employ polymer electrolyte membrane (PEM) technology combined with on-board hydrogen storage. Last year’s edition of Inside Green Innovation: Progress Report reviews this technology area in further detail.
Implications for innovation and future patent filings
Hydrogen technology is rapidly advancing, with a growing number of existing and new players shaping its development. Its wide range of application areas, from transportation to energy storage and industrial processes, underscores its potential to significantly improve our environmental impact in a number of different ways.
While countries like Germany, Japan, the US, and South Korea lead the way, addressing both technical and non-technical challenges and restrictions will be essential to realising the full potential of hydrogen as a clean and sustainable energy and feedstock source globally.
In view of the patent data detailed in this report, combined with the wider context, we expect that innovation in hydrogen technologies will continue, especially in green production and storage. Sustained investment will be required to promote innovation and accelerate the large-scale deployment of novel technologies. We anticipate that the quantity of upcoming patent filings will reflect the high value of intellectual property assets these advances will represent.
