Hydrogen Tanks Market

OPPORTUNITY: Emergence of lightweight composite material-based hydrogen tanks

Lightweight composite tank production is a significant business opportunity in the hydrogen tanks business since they can meet the growing demand for efficient, high-performance hydrogen gas storage. Composite tanks are built with materials like carbon fiber or glass fiber that have a higher strength-to-weight ratio compared to conventional metal tanks made of steel or aluminum and are therefore ideal for hydrogen storage in applications like fuel cell electric vehicles (FCEVs) and other portable or mobile hydrogen uses, where weight is an issue. These light tanks can store hydrogen under high pressures, sometimes over 500 bar, in a manner that provides optimum vehicle weight saving, thus boosting the range and fuel economy of hydrogen vehicles. With the world going green by moving toward carbon footprint reduction and adopting clean energy technologies, the demand for lightweight and durable hydrogen tanks is bound to grow. Furthermore, advancements in composite manufacturing techniques (such as automated winding techniques and resin infusion) are lowering the production cost, and these tanks are becoming more economically viable for mass deployment. This cost-saving, combined with increased adoption of hydrogen-based products, presents the manufacturer with a once-in-a-generation opportunity to drive innovation and increase production so that lightweight composite tanks are leading the charge in moving to a hydrogen future.

CHALLENGES: Capital-intensive production

The manufacturing of hydrogen tanks is a very capital-intensifying process that deals with all the requirements of standard materials, leading-edge production technology, and criteria that meet stringent safety requirements. The key cost drivers are the high proportions of carbon fiber reinforced composites because these represent well over 50-70% of the tank cost for Type 3 and Type 4 tanks. These composites are designed to withstand extremely high pressures, often up to 700 bar, which is required for the safe and efficient storage of hydrogen. Carbon fiber, which is the strongest but lightest of materials, is extremely expensive and causes increased production costs. Furthermore, the manufacturing of hydrogen tanks involves advanced and sophisticated methods such as filament winding technology and even automated fiber placement, requiring out-of-reach robotics and precision equipment. Thus, one finds that although the technology makes the tanks structurally sound and safe at very high pressures, it costs massive amounts in initial investment capital for the equipment, expertise, and maintenance.

Unlike traditional fuel tanks, hydrogen tanks are not manufactured in large volumes, resulting in no economies of scale. Fuel tanks are produced in large quantities, which helps lower costs, but due to relatively small production runs of hydrogen tanks, manufacturers cannot benefit from similar cost savings. The intricacy of the manufacturing process, as well as the relatively limited market size for hydrogen tanks as compared to other markets, keeps the costs high. While research is continually ongoing to create lower-cost raw materials and manufacturing methods, such as the investigation of alternative fibers or optimizing automation processes, much development must occur before the production of hydrogen tanks can become more affordable.