Hydrogen Integration Strategies

Backward and Forward Hydrogen Integration Strategies A number of important firms in the hydrogen sector are increasing their market share and status in the value chain by employing both forward and backward integration strategies. Forward integration aims to expand into downstream activities or end-user markets, while backward integration involves acquiring or overseeing the production of inputs or raw materials. Hydrogen integration strategies are the plans and techniques that individuals, organizations, and governments utilize to successfully incorporate hydrogen into various economic sectors. These strategies seek to capitalize on hydrogen's advantages as a clean and flexible energy source to address energy-related problems, reduce carbon emissions, and promote sustainable development. Hydrogen integration strategies encompass a range of activities, including production, storage, transportation, and end applications. Here are some examples of companies implementing these strategies: Backward Integration: 1. Plug Power: Plug Power, a well-known provider of hydrogen fuel cell solutions, is taking a step toward backward integration with the acquisition of United Hydrogen Group Inc. This acquisition has allowed Plug Power to vertically integrate into the hydrogen production process. Since United Hydrogen operates a hydrogen production facility that uses steam methane reforming and electrolysis, Plug Power has been able to secure a committed supply of hydrogen for its fuel cell devices. 2. Air Liquide: As part of a backward integration initiative, Air Liquide, a global supplier of industrial gas, has made investments in hydrogen production technologies. They have developed unique electrolysis techniques that use renewable energy sources, such as proton exchange membranes and alkaline electrolyzers, to produce hydrogen from water (PEM). Air Liquide provides a sustainable and secure hydrogen supply for a variety of applications in industrial, energy, and mobility through vertical integration with hydrogen generation. Forward Integration: 1. Hyundai Motor Group: As part of its forward integration plan, major automaker Hyundai is building a full hydrogen ecosystem. In addition to developing hydrogen fuel cell electric vehicles (FCEVs), such as the Hyundai NEXO, the infrastructure for hydrogen is being actively improved. Hyundai has also formed a joint venture called Hyundai Hydrogen Mobility (HHM) to offer fuel cell electric trucks as a service. With its vertical integration into the mobility and transportation industry through HHM, Hyundai is providing a complete zero-emission commercial vehicle solution. 2. NEL ASA: Forward integration is the main focus of Norwegian hydrogen company NEL ASA's expansion into hydrogen refueling infrastructure. NEL designs, develops, and manufactures hydrogen refueling stations. Since NEL's turnkey solutions make it possible to build hydrogen fuelling networks, the market for hydrogen fuel cell vehicles is expanding. The stations owned by NEL contribute to the advancement of the hydrogen infrastructure by virtue of their extensive deployment. Hybrid Integration: 1. Siemens Energy: Siemens Energy is a global energy technology company that uses a hybrid integration approach that blends forward and backward integration. As part of their expanded offering, they now provide hydrogen gas turbine and electrolysis technologies. Siemens Energy can manufacture green hydrogen through their electrolysis technology, and their hydrogen gas turbines facilitate the use of hydrogen as a sustainable energy source. This hybrid integration approach enables Siemens Energy to offer integrated systems for hydrogen production, storage, and power generation. 2. Linde plc: Production and distribution of hydrogen is being carried out by renowned industrial gas company Linde plc as part of their hybrid integration plan. Linde operates large-scale hydrogen generation plants using a range of processes, such as steam methane reforming. They also have an extensive network of pipelines and other transportation equipment as part of their extensive infrastructure network for transporting hydrogen. Linde is able to provide hydrogen to a range of end users with a stable supply chain because of its hybrid integration. These instances show how businesses in the hydrogen industry are utilizing forward and backward integration tactics to bolster their market position, maintain supply chain management, and extract value at various points along the value chain. These tactics encourage the use of hydrogen as a clean energy source and aid in the creation of all-encompassing solutions. Read More-https://www.marketsandmarkets.com/industry-practice/hydrogen/integration-strategies

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