UK plans $95 million hydrogen gigafactory to produce components for vehicles

A sign for a hydrogen fuel pump at a train refueling station in Germany. Hydrogen has a diverse range of applications and can be used in a number of industries.

A U.K.-headquartered firm said Monday it was building an £80 million $95.9 million "gigafactory" specializing in the manufacture of hydrogen fuel cell components, with operations planned to start in the first half of 2024.

According to Johnson Matthey, the facility in England would be able to produce 3 gigawatts of fuel cell components annually. PEM fuel cells use hydrogen fuel and oxygen from the air to produce electricity.

The announcement states that the components will be used by hydrogen vehicles. The Sunday Times published earlier reports about the hydrogen giga factory.

Johnson Matthey received support from the U.K. government through the automotive transformation fund.

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Fuel cell vehicles use hydrogen from a tank to make electricity. Fuel cell vehicles emit only water vapor and warm air according to the U.S. Department of Energy.

Demand for fuel cells in the U.K. will rise to 14 gigaflops by the year 2035 according to the Advanced Propulsion Centre. It said this would be equivalent to 140,000 vehicles.

Fuel cell vehicles have a range and power density that are better than diesel engines, according to theAPC. It made them ideal for heavy duty applications.

Liam Condon said fuel cells will be a crucial part of the energy transition.

A number of firms are working on hydrogen fuel cell vehicles. The U.K.-based Tevva launched a hydrogen-electric heavy goods vehicle at the end of June.

The same month saw Volvo Trucks announce it had begun to test vehicles that use fuel cells powered by hydrogen, with the Swedish firm saying their range could extend to as much as 1000 kilometers.

Fuel cell vehicles have a small market share compared to battery electric vehicles.

The world's fuel cell electric vehicle stock stood at over 50,000 in 2021.

Sales of battery electric and plug-in hybrid vehicles will hit 6 million in 2021. EV sales increased by 75% in the first three months of the year.