Hydrogen production by electrolysis

Currently, the primary hydrogen production method is via steam methane reforming (SMR) where hydrogen is derived from natural gas (methane). This results in high CO₂ emissions. By mid-2040, we forecast that electrolysis will become the dominant method for producing hydrogen globally. 

Jump to:

• What is electrolysis?
• DNV provides assurance for hydrogen production
• Adressing hydrogen production challenges with key DNV services
• Your partner to accelerate safe renewable hydrogen production
• DNV pioneers certification for safer, scalable hydrogen production (press release)

What is electrolysis?

Hydrogen production via electrolysis can utilize renewable power directly or take power through the grid. An electrolyser, preferably powered by renewable electricity or steam, can split water into oxygen and hydrogen without direct CO₂ emissions, and therefore offers a decarbonized energy solution for various industries such as fuels, chemicals, plastics and fertilizers. 

This process is often called power-to-x, where x in this case is hydrogen. When renewable energy is used, the hydrogen produced is called renewable or green hydrogen.

Renewable hydrogen can be compressed or liquefied for storage and transport, or converted to derivatives, also called hydrogen carriers, such as ammonia, methanol, renewable diesel and kerosine (aviation), and liquid organic hydrogen carriers (LOHCs) for various offtake and downstream value chains. 

DNV provides assurance for hydrogen production

At DNV we understand the need to scale electrolyser solutions and to make the sites and assets safe, cost competitive and sustainable. Our expertise in risk management and quality assurance, combined with our extensive experience in the gas and hydrogen value chain, positions us as a trusted partner for stakeholders seeking independent verification and standards for facilities and equipment across the full hydrogen value chain.

DNV experts have assessed over 100 renewable hydrogen production projects, as well as supporting joint industry projects (JIP). From this, we have developed a set of standards and services for both hydrogen and derivatives. These help to build confidence, drive the adoption of electrolytic hydrogen and support cost-reduction in a safe manner. 

By supporting our customers and providing the confidence to invest in hydrogen projects, DNV continues to drive innovation and contribute to the global energy transition.

Addressing hydrogen production challenges with key DNV services

Safety, risk and regulatory compliance

Challenge: Hydrogen, compared to natural gas, may leak more frequently, and ignite more easily. It has a higher flame speed and greater chance of overpressure, and makes materials brittle. Hydrogen requires robust safety protocols throughout the value chain.

DNV services:

• Provide up-to-date assessment methodologies and standards for hydrogen safety and provide safety training.
• Conduct risk assessments using advanced inhouse computing modelling (PHAST, KFX, EXSIM, SAFETI, etc.).
• Apply knowledge from DNV’s research and test centres to update hydrogen best practices and solve industry challenges.
• Regulatory compliance support with validation and verification of concepts and detailed design. 
• Verification and certification services for hydrogen production facilities and equipment (including the pressure equipment directive (PED) and CE marking in the EU).

Example: Contributed to the development of various standards, whitepapers listing gaps and development needs, and recommended practices with guidelines.

Technology development and testing

Challenge: Scaling up renewable hydrogen production requires proven technologies that can deliver reliable performance.

DNV services:

• Verify the performance of large-scale hydrogen production technologies.
• Independent testing, witnessing of testing and results, and validation of performance guarantees.
• Technology qualification of emerging technologies, and pre-certification advisory on the journey to compliance.

Example: DNV's Standard for electrolysers components and systems.

Investment and operational costs

Challenge: High investment costs and operational expenses can hinder the economic viability of renewable hydrogen projects.

DNV services:

• Techno-economic feasibility studies.
• Assess the costs associated with the supply chain, power purchase agreements (PPAs), and other factors.
• Derisk investment decisions, including technical due diligence (DD), commercial DD and regulatory DD for projects, suppliers, and original equipment manufacturers (OEMs).

Example: Feasibility studies for green hydrogen production, including LCOH (Levelized Cost of Hydrogen) calculations.

Market outlook and forecast

Challenge: Understanding market dynamics and future demand is crucial for investment decisions.

DNV services:

• Market research and analysis to provide insight into hydrogen demand, cost and pricing trends.
• Market forecasts and scenarios to support strategic planning and hydrogen offtake agreements.
• Advice on market entry strategies and policy developments.

Example: DNV's market studies, as well as the suite of regional and global Energy Transition Outlook reports includes hydrogen market projections, and has a Power Price Forecast model for selected countries and regions.

Sustainability

Challenge: Ensuring the environmental sustainability of renewable hydrogen production is essential for its long-term viability.

DNV services:

• Verify greenhouse gas (GHG) emissions associated with hydrogen production, also ensure they are below regulatory regime thresholds.
• Assess water usage and identify opportunities for water conservation.
• ESG (environmental, social and governance) and compliance assessments.
• Guidance on environmental impact assessments and life-cycle analysis.

Example: DNV's attribute claims service specification.

Your partner to accelerate safe renewable hydrogen production

As experts in technology safety across the whole hydrogen value chain, from early feasibility to construction and operation, DNV offers services to help customers and the industry with guidelines and standards to derisk hydrogen production, storage and transport. 

For governments – providing data, expertise, guidelines and standards to help with regulations, legislation and permitting processes.

For investors – bridging the gap between investors and technical experts to help understand risks and investment potential.

For developers – delivering technical expertise, standards and risk assessments to help developers upscale facilities, infrastructure and their supply chain. 

For asset owners – supplying monitoring, regular inspections and surveys, and advice for safe operations, maintenance and scaling further.