Bosch relies on electrolysis instead of fuel cells

21.01.2025

Source: E & M powernews

Bosch is restructuring its hydrogen activities and increasingly focusing on electrolysis technology. The Group is discontinuing the development of stationary fuel cell systems.

In future, Bosch will focus on hydrogen production and the sale of electrolysis components, in particular PEM electrolysis stacks. This is according to a company statement. PEM stands for polymer electrolyte membrane. This membrane uses electricity to separate water into its components hydrogen and oxygen. Due to its flexible operation, PEM electrolysis is considered particularly suitable for dynamic operation with electricity from volatile energy sources. Bosch is hoping for high growth opportunities in this area and wants to position itself as a central supplier on the market.

This focus comes at the expense of the development and series production of stationary fuel cell systems based on solid oxide fuel cell (SOFC) technology. These are being discontinued. To explain: SOFCs are a special type of fuel cell that work with ceramic electrolytes and reach high operating temperatures of 600 to 1,000 degrees Celsius. They convert chemical energy into electricity and can use various fuels such as hydrogen, natural gas or biogas.

Due to their high efficiency and low emissions, they are considered a promising technology for decentralized energy supply. However, the manufacturing costs are high, as Bosch points out. In addition, demand is moving towards more powerful systems with CO2 capture, which poses economic challenges. What's more: In Europe, particularly in Germany, Bosch is missing a political framework to make the conversion of hydrogen into electricity profitable.

Impact on associates and partnerships

Together with partners, the Group has been working on SOFC technology for over ten years and has tested it in more than 100 pilot plants. Nevertheless, the Group management has decided to change strategy.

Around 550 associates, most of whom work in Germany, are affected by this decision. In its announcement, Bosch assures that it will work out socially acceptable solutions in close consultation with employee representatives. "For some associates," according to the company, a transfer to the electrolysis technology sector could be an option.

At the same time, Bosch is ending its technology partnership with the British company Ceres Power. This partnership had been in place since 2018 and was aimed at developing stationary fuel cells. In future, Bosch will treat its minority stake in Ceres Power as a financial investment and examine divestment options in the long term.

Market opportunities for electrolysis

The decision to expand electrolysis technology is based on the expectation that the global capacity for hydrogen electrolysis will increase to up to 170,000 MW by 2030. Bosch anticipates that the market for electrolysis systems could reach a volume of up to 37 billion euros by the end of the decade.

Bosch emphasizes that it continues to see hydrogen as a strategic growth area. Thomas Pauer, Chairman of the Board of Management of Bosch Power Solutions, is quoted as saying: "In view of volatile market developments, we as a company need to bundle our strengths and focus our portfolio. We see hydrogen as an important energy source for decarbonizing the energy system. Large-scale electrolysis plants with high-performance stacks must be built worldwide for the renewable production of hydrogen. This offers great business opportunities for Bosch with our expertise. We will focus on this."

Author: Davina Spohn