Siemens Energy and Air Liquide have signed a Memorandum of Understanding to combine their expertise in PEM (Proton Exchange Membrane) electrolysis technology, Siemens Energy announced in a statement on Monday.

The companies intend to focus on the co-creation of large industrial-scale hydrogen projects and mass manufacturing of electrolyzers in Europe, especially in Germany and France.

They also agreed to work on research and development activities to co-develop the next generation electrolyzer technologies.

Electrolysis is a promising option for hydrogen production from renewable resources.

'Electrolysis is the process of using electricity to split water into hydrogen and oxygen. This reaction takes place in a unit called an electrolyzer,' according to the US office of Energy Efficiency and Renewable Energy.

'Hydrogen will play an essential role to achieve the European Union's objectives for CO2 and greenhouse gas emission reduction,' the statement read, adding that it is key to accelerate the production of sustainably generated hydrogen through large-scale PEM electrolyzers to meet rapidly growing demand and lower costs.

The Air Liquide-H2V Normandy project in France with a capacity of 200 MW is one of the most ambitious European projects for hydrogen production from renewable energy.

In a statement, Federal Economy Minister of Germany Peter Altmaier said that hydrogen is a key element for the success of the country's energy transition and crucial for European and global efforts to combat climate change.

Bruno Le Maire, the French minister of economy, finance and recovery, said now is the time to invest massively to develop new value chains and new technologies.

'Now, is the time to act. 7 billion euros will be invested in hydrogen between now and 2030 to make our economy more competitive and more decarbonized,' he added.

By Gulsen Cagatay

Anadolu Agency

energy@aa.com.tr