Cummins Accelera a leader is electrolyzers for green hydrogen

Industry Discussions Renewable Energy
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C&EN Feb 17 issues reports Cummins will supply a 100MW electrolyzer system to BP for green hydrogen in Germany. To start in 2027 and produce 11,000 metric tons of hydrogen per year.

Cummins is well known as a leading manufacturer of diesel engines. Search indicates they have technology for many alternatives including hydrogen fueled engines (as well as natural gas, biodiesel, etc).

Their hydrogen business is known as Accelera.

https://www.accelerazero.com/electrolyzers/pem
[PEM electrolyzer hydrogen technology | Accelera](https://
PEM electrolyzer hydrogen technology | Accelera)

"Accelera is the industry benchmark for PEM electrolyzer systems that are safe, reliable and deliver unmatched productivity and return on investment. "

10-K

" Accelera Segment

The Accelera segment designs, manufactures, sells and supports electrified power systems with innovative components and subsystems, including battery, fuel cell and electric powertrain technologies as well as hydrogen production technologies. The Accelera segment is currently in the early stages of commercializing these technologies with efforts primarily focused on the development of electrified power systems and related components and subsystems and our electrolyzers for hydrogen production.

We anticipate our customer base for Accelera offerings will be highly diversified, representing multiple end markets with a broad range of application requirements. This includes new markets, like the growing green hydrogen market, which we serve with our leading hydrogen production technologies. We will continue to pursue relationships in markets as they adopt electric and hydrogen solutions.

In the markets served by the Accelera segment, we compete with battery and emerging fuel cell companies, powertrain component manufacturers, vertically integrated OEMs and entities providing hydrogen production solutions. Our primary competitors include Daimler, PACCAR, Traton, BYD Company Limited, Dana Incorporated, BorgWarner Inc., Nel ASA, Siemens Energy, Thyssenkrupp and Plug Power Inc."

Accelera Indiana: Columbus Belgium: Oevel
Minnesota: Fridley Canada: Mississauga
North Carolina: Asheville, Forest City China: Shanghai, Tianjin
Germany: Herten
Spain: Guadalajara

Accelera is 1% of Cummins sales–

	Operating Segments
	2024		2023		Percent change
	 		Percent

of Total Percent
of Total 2024 vs. 2023
In millions Sales EBITDA Sales EBITDA Sales EBITDA
Engine $ 11,712 28 % $ 1,653 $ 11,684 28 % $ 1,630 — % 1 %
Components 11,679 28 % 1,591 13,409 32 % 1,840 (13) % (14) %
Distribution 11,384 27 % 1,378 10,249 25 % 1,209 11 % 14 %
Power Systems 6,408 16 % 1,180 5,673 14 % 836 13 % 41 %
Accelera 414 1 % (764)
(1)
354 1 % (443) 17 % (72) %
Total segments 41,597 100 % 5,038 41,369 100 % 5,072 1 % (1) %
Intersegment eliminations (7,495) 1,288
(2)
(7,304) (2,055)
(3)
3 % NM
Total $ 34,102 $ 6,326
(2)
$ 34,065 $ 3,017
(3)
— % NM

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And the cost of green hydrogen? From December:

Green Hydrogen Prices Will Remain Stubbornly High for Decades
https://www.bloomberg.com/news/articles/2024-12-23/green-hydrogen-prices-will-remain-stubbornly-high-for-decades
Green hydrogen has been touted by politicians and business leaders alike as a key fuel for a carbon-free future. But it will remain far more expensive than previously thought for decades to come, according to a new estimate from BloombergNEF.

Hydrogen companies worldwide are already struggling with canceled projects and sluggish demand. In the US, billions of dollars of projects have been stalled waiting for President Joe Biden’s administration to issue final rules for a tax credit meant to spur production.

BNEF had in the past forecast steep declines in the price of green hydrogen, which is made by splitting it from water with machines called electrolyzers running on renewable power. But in its forecast published Monday, the firm more than tripled its 2050 cost estimate, citing higher future costs for the electrolyzers themselves…

The forecast puts Biden’s goal of driving US hydrogen costs down to $1 per kilogram by 2031 out of reach.

DB2

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Here is a graph showing how much “hope” there is for hydrogen fuel cells to be the next big thing. You’d think after 20+ years we’d be there by now if hydrogen fuel cells with green H2 made sense.

image
image1068Ă—591 49.2 KB

This is Ballard Power

Mike

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Yes, I wonder who actually manufactures the equipment offered by Cummins. Seems logical that they are prepared for whatever new technology a customer wants to explore. So at least they keep up to date on the technology and make well informed recommendations. But do they make the equipment or merely resell it?

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The ambitions now have moved on from fuel cells (except maybe at Toyota) to things such as replacing coal in steel production and even replacing natural gas. Obviously not close.

DB2

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Hydrogen made from natural gas is cheaper and when carbon dioxide co-product is collected and sequestered (the way synthetic ammonia is made) the hydrogen is blue hydrogen.

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