H-TECH SYSTEMS is now Quest One. The hydrogen company’s recent name change was prompted by the opening of a gigahub for the serial production of electrolysis stacks in Hamburg at the end of September.
The name Quest One refers to the enormous task of addressing the climate crisis, which is the company's number one quest. More on Quest One’s mission in our interview with Dr. Dominik Heiß, Executive Vice President Strategy & Product.
As a pioneer in PEM electrolysis, we have spent more than 25 years refining our technology, increasing the productivity of our systems and scaling them up to industrial size. We have sold more than 50 systems and are now one of the top global players.
We have also been a subsidiary of MAN Energy Solutions and part of the Volkswagen Group since 2021. This unique constellation offers many advantages for expanding the hydrogen industry, such as access to a global sales network with 130 locations, experience in large-scale projects in the heavy industry and expertise in production scaling and supplier-based series production business.
PEM (proton exchange membrane) is a relatively young technology used to electrolyze water. We have been researching and developing it for over 25 years. Compared to other electrolysis technologies, the key advantage of the PEM electrolysis method is its reaction rate and flexibility to operate in the partial load range, which allows it to efficiently balance fluctuations in the power supply from renewable sources of energy.
As the share of volatile renewable sources of energy grows, this property becomes increasingly important in stabilizing power grids. This is where PEM electrolysis does better than other technologies – in addition to its primary purpose of producing green hydrogen. PEM electrolysis is also highly proven and reliable, generating high-purity hydrogen that can be used in fuel cells without further treatment. It is also extremely efficient at converting electricity into hydrogen.
The hydrogen economy will change dramatically in the next few years and the demand for green hydrogen will be huge. If Germany is to meet its climate targets of reducing its carbon emissions by 55 percent by 2030 and by 95 percent by 2050, it will have to rely on green hydrogen. In particular, the decarbonization of industrial processes requires a green molecule, and there is no alternative to green hydrogen. It is predicted that green hydrogen will account for around ten to 20 percent of global emissions reductions by 2050. This is not possible with blue or gray hydrogen.
The total installed capacity of electrolysis systems worldwide is currently around 1.5 GW. According to the International Energy Agency (IEA), we will need nearly 200 GW globally by 2030 to limit global warming to two degrees Celsius, and much more to reach net zero in the medium term. However, according to the latest estimates, this figure will not be reached by 2030 because the hydrogen economy is taking longer than expected to ramp up. Nevertheless, the hydrogen industry is poised for tremendous growth, especially given the small number of systems installed today.
Our relatively young industry needs planning certainty. But when it comes to financing, purchase and regulatory frameworks, there is still a lot of uncertainty. The Renewable Energy Directive (RED II) was an important step, if only at a European level. The transposition of this directive to national law is an important guide rail that is complemented by the IPCEI (Important Projects of Common European Interest) subsidies and the implementation of the Hydrogen Bank. When it comes to Germany in particular, we’re now seeing important and long-awaited developments in the industry, such as the recent decision to plan and finance the core hydrogen network. But there is still a great need for clarity and regulation.
In addition to this, effective funding programs are critical drivers for the industry. These funding programs must address both the application and use of hydrogen. Europe is at the forefront of the electrolysis industry and has a unique opportunity to become a global leader.
Green hydrogen is a promising alternative to fossil fuels, particularly in the field of heavy-duty transport, for example for truck fleets that have to cover long distances with large loads. However, we do not consider this industry to be the core market for hydrogen applications. We focus on all sectors that are difficult to electrify or decarbonize. For example, when it comes to the decarbonization of large-scale industries such as chemical and steel plants, or the production of fuels for the shipping and aviation industries.
Our goal is for our electrolyzers to help reduce global greenhouse gas emissions by one percent by 2050. And by increasingly using green hydrogen as an energy carrier for the industries, we can also improve the carbon footprint of our own products.
We’re developing products that will also meet future market requirements. Take our MHP, for example. It is a scalable system thanks to its modular design. This evolution is not limited to technology and production, but extends to the entire industry – including our customers, our suppliers and our technology partners. To ensure that the electrolysis industry can meet the growing demand, we need close and international cooperation. The US market is particularly important to us, which is why we have been active there since the beginning of the year. We are building local supply chains from our new site in Houston, Texas.
