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Hydrogen science 101: Understanding electrolyzer risks

In the last five years, there’s been a buzz about the potential of hydrogen — the world’s most abundant element — to displace carbon-based fuels and, in particular, aid the energy transition for hard-to-abate industrial sectors.
Concept of an energy storage system based on electrolysis of hydrogen in a clean environment with photovoltaics, wind farms and a city in the background. 3d rendering.

06/20/2023 · 4 minute read

In the last five years, there’s been a buzz about the potential of hydrogen — the world’s most abundant element — to displace carbon-based fuels and, in particular, aid the energy transition for hard-to-abate industrial sectors. Producing clean hydrogen as a usable fuel on the scale required to accelerate the energy transition involves two critical pre-requisites:

  1. Rapid scale up of renewable energy generation. Between 40 and 50 kilowatt hours (kWh) of energy is needed to make one kilogram (kg) of hydrogen. Typically, one kg of hydrogen could run an electric oven for eight hours.
  2. Electrolyzers — stacks of them. Current electrolyzer stacks are limited to a nominal rated power of 10-20 megawatts (MW). A 10MW electrolyzer could produce 3,000 – 4,500kg of hydrogen per day.

As with the rapid scale-up of any technology, misconceptions can cause insurance markets to be cautious. As governments realign energy policies and investors explore growth opportunities, Marsh engineers are assessing the real versus perceived risks of hydrogen production.

How is hydrogen produced?

Hydrogen gas is created through a production process called electrolysis. There are three main types of hydrogen electrolyzers — alkaline, proton exchange membrane (PEM), and solid oxide electrolyzers (although the latter is not being proposed yet for large-scale production).  

Electrolyzers contain a cathode and an anode, which provide negatively and positively charged surfaces. Water is pumped into the electrolyzer, and hydrogen gas is created by splitting the water into its hydrogen and oxygen components. Depending on the electrolyzer design, a membrane or diaphragm cell separates the hydrogen and oxygen.

The hydrogen is compressed and purified before it is transported by pipe or road, or shipped as a gas or liquid to a storage facility. The oxygen is typically released into the atmosphere or captured and used in other industrial processes.

What’s the risk?

Though there are variances in how different types of electrolyzers function, they all present the risk of fire or explosion. Failures in the process can lead to hydrogen and oxygen mixing, which could result in a fire or explosion – within the electrolyzer, during the compression or purification processes, or within the storage equipment.  

Four ways to mitigate electrolysis related risks

Hydrogen production plant operators should consider four risk mitigation measures:

  1. Understand the lifetime of your electrolyzers. Like all equipment, electrolyzers have a specific lifespan, after which they can start to degrade, increasing the likelihood of failure. Operators should be aware of the optimal operating conditions and lifetime of their electrolyzer’s critical components, as specified by the original equipment manufacturer, and based on actual operational experience. Plans should be in place to replace the equipment — including the membrane or diaphragm — at the end of its lifetime. The lifespan of the plant will depend on how intensely it’s used and how well it’s maintained.
  2. Follow manufacturer specifications on maintenance tasks and incorporate lessons learned from actual operational experience. Operators need to carry out all required maintenance to minimize the risk of membrane degradation. Operational teams must be aware that different types of electrolyzers have different maintenance requirements and schedules. These requirements should also incorporate lessons learned from operational experience.
  3. Identify membrane and diaphragm degradation early. Even when electrolyzers are properly maintained, unexpected failures may still occur within the manufacturer-recommended lifespan. It is important to implement effective process monitoring systems to identify potential early failures. Monitoring should include key parameters, for example, gas purity, voltage, and current. Pausing production at a particular electrolyzer unit should be considered if the unit is operating outside its expected operating parameters.  
  4. Implement purging and inerting practices. Process plant systems must be designed with purging and inerting requirements in mind (to minimize or eliminate the risk of fire). A suitable and sufficient number of bleed points should be provided within the plant design. Proper purging and inerting should be executed before start-up and before maintenance is carried out. Losses have occurred because flammable and oxidizing gases have not been effectively removed from processing equipment when necessary. Operators should develop purging and inerting procedures that are suitable for their processes and equipment.

Demand for hydrogen is accelerating. Scale-up to meet this demand will result in infrastructure expansion, increasing the number of operational electrolysis plants and pipelines. As with any industrial process, safety is of paramount importance. Hydrogen production requires rigorous engineering and procedural controls to mitigate any inherent risks. While these risks and mitigations are well understood, safe operating and maintenance processes are essential.

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Our people

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Jane Smith

Head of Energy and Power, Pacific

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Gemma Claase

Head of Renewable Energy, Energy & Power Practice

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