European electrolyser costs declined in 2025, with alkaline CAPEX at around €2,075/kW and PEM at roughly €2,196/kW, both down double digits compared with 2024.
At the same time, European water electrolyser manufacturing capacity reached 13.1 GW per year and is expected to rise further by 2027. The latest data signals continued industrial scaling even as hydrogen project FIDs remain uneven.
Updated data from the European Hydrogen Observatory shows ongoing cost reductions across Europe’s electrolyser industry. Alkaline and PEM systems both recorded year-on-year CAPEX declines in 2025, driven by lower stack and balance-of-system costs.
Operational manufacturing capacity reached 13.1 GW per year, with PEM representing just over half of installed capacity and alkaline accounting for more than 40%. Capacity is projected to expand further by 2027.
The figures suggest Europe’s electrolyser supply chain continues to scale and mature despite broader hydrogen market headwinds.
Sources:
European Commission – European Hydrogen Observatory
Carlos Bernuy-Lopez (LinkedIn)
