The political shift towards renewable energy adoption and energy security this year has been exacerbated by Russia’s invasion of Ukraine. This shift has led to a major focus on the hydrogen sector, especially green hydrogen produced by renewable energy. The demand for platinum group elements is expected to be high due to this shift. 

In a 2022 report released by Metal Focus on the Platinum Group, “The International Energy Agency (IEA) has estimated that hydrogen electrolyser capacity may exceed 300MW and that 350 projects are in development could bring as much as 54MW capacity on stream by 2030. If realized, this could result in existing electrolyser demand of a few thousand ounces of PGM demand becoming several hundreds of thousands by the end of the decade.”

Currently, the primary use of platinum and palladium is as catalysts to clean nitrous oxides out of internal combustion engines, but this is about to change as the EU will be banning new ICE car sales by 2035. This development will make PGMs crucial in the hydrogen sector as they are a significant component of the Proton Exchange Membrane (PEM).

According to Metal Focus, “The largest consumer of PGMs within the hydrogen sector is stationary and portable fuel cells, used to power buildings, temporary encampments, as an emergency power source, or interruptible power supply for data centers.”

By 2030, the transport sector could account for over half the demand of PGM, with PGM stretched to supply both old and new vehicles. Managing Director of Podium Minerals (ASX: POD), Sam Rodda, said,

“If combustion vehicles stay around much longer, then it will put pressure on PGM supply to service both old and new technology in vehicles. If we ramp up hydrogen fuel cells, then the requirements, particularly for platinum as the major use, will be stretched, because currently, the forecast use of PGMs in hydrogen fuel cell vehicles could be up to 10 times the amount used as a catalyst in combustion vehicles.”

With PGM becoming a crucial piece of the hydrogen-based energy economy, different alternative energy companies in Australia, such as Chalice (ASX:CHN), Future Metals (ASX:FME), and Galileo (ASX:GAL), have started explorations which have yielded positive results.

Featured Image: Twenty20 © @Zozulinskyi