Hydrogen Integration Strategies (1)

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Hydrogen Integration Strategies

• Strategies for integrating hydrogen as a resource
  and energy carrier into many economic sectors,
  including transportation, manufacturing, and
  power generation, are known as Hydrogen
  Integration Strategies. Reducing greenhouse gas
  emissions and moving toward a more sustainable
  energy system are thought to be possible with the
  help of hydrogen.
• Backward and Forward Hydrogen Integration
  Strategies
• In the hydrogen sector, several major players are
  employing backward and forward integration
  strategies to strengthen their position in the
  value chain and boost their value capture.
  Frontward integration deals with expanding into
  end-user markets or downstream processes, while
  backward integration deals with managing the
  production of inputs or raw materials.
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Here are some examples of companies implementing
these strategies

• Backward Integration
• 1. Plug Power Top hydrogen fuel cell technology
  provider Plug Power acquired United Hydrogen
  Group Inc. to accomplish backward integration.
  Plug Power was able to vertically integrate into
  the hydrogen market through this deal. Because
  United Hydrogen operates a hydrogen manufacturing
  facility that uses steam methane reforming and
  electrolysis, Plug Power is able to secure a
  committed supply of hydrogen for its fuel cell
  devices.
• 2. Air Liquide International market for
  industrial gas Air Liquide's backward integration
  strategy includes investments in hydrogen
  generating technology. Utilizing sustainable
  energy, they have developed novel electrolysis
  techniques such as Alkaline electrolyzers and
  Proton Exchange Membrane (PEM) to produce
  hydrogen from water. Via its vertical integration
  into hydrogen production, Air Liquide provides a
  sustainable and safe hydrogen supply for a range
  of uses, including energy, business, and
  transportation.

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• Forward Integration
• 1. Hyundai Motor Group One major automaker,
  Hyundai, is developing a large-scale hydrogen
  ecosystem as part of its forward integration
  plan. They are putting a lot of effort into
  developing the hydrogen infrastructure and have
  made hydrogen fuel cell electric vehicles (FCEVs)
  accessible, such as the Hyundai NEXO.
  Furthermore, Hyundai has formed a joint venture,
  Hyundai Hydrogen Mobility (HHM), with the
  objective of leasing fuel cell electric trucks.
  Hyundai is providing a comprehensive program for
  zero-emission commercial vehicles as part of its
  vertical integration into the mobility and
  transportation industries through HHM.
• 2. NEL ASA Forward integration is being
  prioritized as NEL ASA, a Norwegian hydrogen
  company, expands its hydrogen refueling
  infrastructure. NEL's business encompasses the
  design, development, and production of hydrogen
  refueling stations. NEL offers turnkey solutions
  to support the growth of hydrogen fuelling
  networks, which in turn drives the market
  expansion of hydrogen fuel cell vehicles.
  Infrastructure for hydrogen is developed more
  quickly when NEL stations are deployed globally.

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• Hybrid Integration
• 1. Siemens Energy The global energy technology
  company Siemens Energy has employed a hybrid
  integration approach that combines forward and
  backward integration. These days, their expanded
  offering includes both hydrogen gas turbine and
  electrolysis technology. Siemens Energy can
  produce green hydrogen thanks to their
  electrolysis solutions, even though they can use
  hydrogen as a clean energy carrier thanks to
  their hydrogen gas turbines. Thanks to this
  hybrid integration method, Siemens Energy is able
  to provide integrated solutions for power
  generation, storage, and hydrogen production.
• 2. Linde plc Hydrogen production and delivery
  are domains of leading industrial gas company
  Linde plc, which has embraced a hybrid
  integration strategy. Linde uses steam methane
  reforming as one of several methods to run
  large-scale hydrogen generating facilities. To
  distribute hydrogen, they also have a huge
  pipeline and transportation network. Thanks to
  their hybrid integration, Linde is able to supply
  hydrogen to a range of end users with a reliable
  supply chain.

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• These examples demonstrate the use of backward
  and forward integration strategies by companies
  in the hydrogen sector to bolster their market
  positions, ensure supply chain management, and
  optimize value at different stages of the value
  chain. These strategies support the development
  of comprehensive answers and the utilization of
  hydrogen as a clean energy source.
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