In stationary H2 technologies, Bosch is to focus on electrolysis – hydrogen to remain a strategic business area

Stuttgart, Germany – Bosch is realigning its operations and investments relating to stationary hydrogen technologies. In the future, the supplier of technology will focus more on technologies for hydrogen production and the supply of electrolysis components, above all PEM (proton-exchange membrane) electrolysis stacks. In light of this, its operations relating to the industrialization and preparation for production of decentralized power-supply systems based on solid-oxide fuel cells (SOFC) will be discontinued. Work to explore the possibilities of solid-oxide technology will continue within the company’s corporate research unit. The company also remains highly committed to mobile applications of H₂ in fuel cells and hydrogen engines.

Over the past ten years, Bosch has worked with partners to develop solid-oxide fuel-cell technology for decentralized power-supply systems. These achieved a high level of technical maturity, which was demonstrated in more than 100 pilot systems. Recently, however, the market has not developed as expected. On the one hand, the market is especially demanding higher-output systems with carbon capture, and this makes the conditions for economical operation significantly tougher. On the other hand, the conversion of hydrogen into electricity is not yet being given the necessary priority in Europe, and especially in Germany. This means that further engineering effort will be required in the years ahead, and this will significantly reduce commercial viability.

For us as a company, volatile market developments mean that we have to consolidate our efforts and focus our portfolio. We see hydrogen as an important source of energy for decarbonizing the energy system. For the green production of hydrogen, large numbers of electrolysis plants with high-performance stacks will have to be set up worldwide. With its expertise, Bosch has huge business opportunities here. And it is on those opportunities that we will focus.

Dr. Thomas Pauer, the president of Bosch Power Solutions

“For us as a company, volatile market developments mean that we have to consolidate our efforts and focus our portfolio. We see hydrogen as an important source of energy for decarbonizing the energy system. For the green production of hydrogen, large numbers of electrolysis plants with high-performance stacks will have to be set up worldwide. With its expertise, Bosch has huge business opportunities here. And it is on those opportunities that we will focus,” said Dr. Thomas Pauer, the president of Bosch Power Solutions.

Bosch employs some 550 associates in the SOFC business, most of them in Germany. Socially acceptable solutions will be found for them in close consultation with the employee representatives. For some associates, for example, there may be opportunities in electrolysis. The actual form of these solutions will be the subject of talks that are about to start.

As a result of this strategic realignment, Bosch has informed its technology partner Ceres Power that it will bring the partnership to a close in an orderly fashion and honor its contractual obligations. With immediate effect, the Bosch representative on the Ceres Power supervisory board will stand down. In the future, Bosch will treat its minority interest in Ceres Power as a non-core financial investment. Over time, moreover, possibilities of divesting the minority interest in Ceres Power are to be examined.

Hydrogen remains a strategic growth area for Bosch. By 2030, Bosch hydrogen technology may generate sales revenue running into billions of euros. Above all, the market for H₂ production is stirring. Worldwide, hydrogen electrolysis will reach an installed capacity of between 100 and 170 gigawatts by 2030. By the end of the decade, the global electrolysis market is expected to have a volume of as much as 37 billion euros. Bosch is on track to debut its electrolysis stack this year.