On-site hydrogen generators

Until recently, producing hydrogen at the point of use was an industrial exception. Analyst Mahendra Patil published a PDF guide presenting on-site generators as a way to cut transport costs and emissions, with on-demand production from water, natural gas, coal or biomass.

The real size of that market comes from an independent source. The IEA Global Hydrogen Review 2026, Production section, records that installed electrolysis capacity doubled in 2025 to surpass 4 GW, with more than 2.5 GW under construction targeting operation in 2026.

The case for an on-site generator rests on the utilisation factor. The equipment removes freight and cylinders, but swaps variable cost for tied-up capital, and needs steady consumption to spread that investment.

Four gigawatts installed show a market that has left the pilot stage and is still small against industrial demand. For a buyer, the first figure to establish is the plant's own consumption profile, and that can be measured today.