Fuel Cell Stack Recycling and Reuse Market

Fuel Cell Stack Recycling and Reuse Market size is forecast to reach USD 365.57 Million by 2030, after growing at a CAGR of 25.29% during the forecast period 2024-2030. The increasing need to reduce environmental pollution and enhance energy production has been one of the main drivers of the growth of the global fuel cell stack recycling and reuse market. Additionally, the rising demand for reliable and cost-effective energy has led to the development of several technologies, such as fuel cells, which has positively impacted the growth of the global fuel cell stack recycling and reuse market. Moreover, the growing need for efficient energy storage and fuel cell stack reuse technologies is likely to create further opportunities in the global fuel cell stack recycling and reuse market. Additionally, increasing demand for fuel cell-based energy sources such as ground transportation, portable power generators, and other applications have also boosted the demand for fuel cell stack recycling and reuse solutions.

The report “Fuel Cell Stack Recycling and Reuse Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the fuel cell stack recycling and reuse market.

By Type: Proton Exchange Membrane Fuel Cells (PEMFCs), Solid Oxide Fuel Cells (SOFCs), Molten Carbonate Fuel Cells (MCFCs), Phosphoric Acid Fuel Cells (PAFC), and Others 

By Component: Membranes, Electrodes, Metals, Polymers, and Others

By Recycling Process: Pyrometallurgical Recycling, Hydrometallurgical Recycling, Mechanical Recycling, and Others

By End Use Industry: Transportation, Stationary Power Generation (Data Centres, Residential Buildings, Telecom Towers, Others), Portable Power Generation (Consumer electronics, Military Applications, Others), Others

By Geography:  North America, South America, Europe, and APAC 

• APAC region is anticipated to dominate the fuel cell stack recycling and reuse market with a value share of approximately 55% in 2023, followed by Europe with a 23% value share in the fuel cell stack recycling and reuse market.

• Developing countries like the APAC region are projected to witness a strong demand for fuel cell stacks and recycling, due to the increasing demand for electric vehicles and the environmentally-friendlier characteristics of fuel cell power systems.

• Ongoing advancements in recycling technologies are improving the efficiency of the fuel cell stack recycling and reuse processes. Innovative techniques are being developed to separate and recover valuable materials from fuel cell stacks.

• Stringent environmental regulations and sustainability initiatives are driving the demand for fuel cell stack recycling and reuse. Governments and organizations are aiming to reduce carbon emissions and promote circular economy principles.

The Proton Exchange Membrane Fuel Cells (PEMFCs) segment dominated the fuel cell stack recycling and reuse market in 2023 with a share of 32%. The PEM fuel cell (Proton Exchange Membrane Fuel Cell), one of the most important fuel cell products, is targeted for recycling by the BEST4Hy consortium, which consists of corporate partners and research institutions. Regarding quality, scalability, and value retention, the emphasis is on the (further) development of unique dismantle and recovery techniques. For instance, in 2023, PemionTM, a hydrocarbon-based proton exchange membrane, and polymer, developed by Ionomr Innovations Inc., is a game-changing development in materials for the heavy-duty industry's use of green hydrogen fuel cells. In addition to reducing dependency on these increasingly regulated ingredients, PemionTM is more ecologically friendly than traditional fluorinated membrane and polymer technologies. With the various benefits over current electricity-generating techniques, such as high efficiency and clean production, proton exchange membrane fuel cells (PEMFCs) have drawn a lot of interest as a potential source of energy.

The Electrodes segment dominated the fuel cell stack recycling and reuse market in 2023 with a share 30%. The factors such as increasing adoption of fuel cell technology, government support, advancements in electrode materials, and the push for decarbonization are driving the market's expansion. For several decades, researchers have been working to improve electrodes' chemical composition, microstructure, and performance and in recent years, there has been an increase in the research being done on microbial fuel cells (MFCs). To provide variable degrees of enhanced output current depending on the sorts of modifications, electrode modifications such as anode treatments, cathode modifications using catalysts, and bio cathodes innovations have been explored.  The development of alternative catalyst materials, along with improved manufacturing techniques, is anticipated to address cost and durability challenges, making fuel cell stack electrodes more commercially viable. Additionally, ongoing research and development efforts focused on enhancing electrode performance and efficiency will contribute to market growth.

The Hydrometallurgical Recycling segment dominated the fuel cell stack recycling and reuse market in 2023. The hydrometallurgical fuel cell stack recycling process is anticipated to witness growth as more companies move towards greener and more sustainable energy sources. As more companies realize the benefits of these systems, they are increasingly investing in the infrastructure. This, in turn, has led to increased demand for recycling programs that can help to reduce waste and maximize the lifespan of fuel cells. Physical separation efficiency is the primary benefit of hydrometallurgical recycling. Based on the variations in the phases' physical characteristics, such as their specific gravity, conductivity, magnetic susceptibility, brittleness, and hydrophobicity, several separation techniques are available. The rate of metal recovery in the hydrometallurgical recycling technique was much higher than in conventional procedures. It has been demonstrated that hydrometallurgical recycling is an effective technique for recovering precious metals from used fuel cells. There is less need for extra mining and processing because it can recover up to 98% of the metals found in used fuel cells.

The Transportation end-use industry dominated the fuel cell stack recycling and reuse market in 2023. Major manufacturers are making investments in fuel cells, and consumers may choose from several fuel cell cars they can buy or lease globally. More fuel-cell vehicles will be available on the market in the upcoming years. For instance, on September 1, 2022, Bosch committed more than $200 million to the development of fuel cell stacks for large goods vehicles. Norway-based One of the top manufacturers of fuel cell technology, TECO 2030, announced the opening of its Innovation Centre in Narvik, Norway, where manual fuel cell stack production will begin. To make TECO 2030's fuel cell technology commercially viable, fuel cell stack fabrication must be done manually. The hydrogen fuel cell technology used by TECO 2030, which will offer reliable, clean electricity for both maritime and land-based applications, is centered on the fuel cell stacks. The increasing use of electric vehicles and technological advancements for less fuel consumption has led to an increase in market expansion.

Asia Pacific region dominated the fuel cell stack recycling and reuse market in 2023 with a share of 55%.  China is one of the key revenue-generating countries for the fuel cell stack recycling and reuse market in the APAC region. The nation is highly dominated in the market primarily due to its well-developed industrial infrastructure and low labor costs. China has been able to quickly and effectively concentrate large amounts of recyclable materials for production, as well as access the necessary raw materials needed for fuel cell stack reuse. For instance, Great Wall Motor revealed its H2 energy strategy, which takes a comprehensive look at the entire H2 value chain. The company plans to release its first fuel-cell SUV in 2022, and by 2025, it hopes to be a global leader in the production of H2-powered vehicles. Other Chinese OEMs, such as GAC's AION LX Fuel Cell, FAW's Hongqi H5 FCV, and Changan's CS75 Hydrogen, also released fuel cell versions of popular car models. Many of these vehicles took part in the inaugural China Hydrogen Car Super League. By 2025, the Chinese capital expects to have over 10,000 fuel cell vehicles on the road as part of a grand plan to build homegrown H2 industries and capabilities. Due to encouraging government policies, every nation in APAC is leading to the expansion of the market. For instance, South Korea is now expanding its advantage in the production and use of fuel-cell vehicles. In 2021, a record 8,500 NEXOs were shipped into the nation, and it is anticipated that this number will rise sharply in the years to come.

Fuel-cell cars are becoming significantly more affordable over time. As a result, Industrializing fuel cell production offers tremendous potential for cost savings. For instance, Ballard claims that even with a low level of production, the cost of fuel cell vehicles, particularly buses, has decreased by 65% over the past ten years. 

Other factors that have helped lower the overall cost of fuel-cell electric vehicles include the following: Cheaper hydrogen storage tank price better integration and lowered the cost of the vehicle's electric drivetrain hybridization of the vehicle's fuel cell and batteries, which combines a smaller fuel cell with lithium batteries whose cost has also been declining. Additionally, the automotive supply chain is currently creating dependable, low-cost parts for fuel cell powertrains. This contains crucial plant balance components, which will significantly affect the overall system cost. As a result, the anticipated cost of fuel cell vehicles is the primary element driving demand for fuel cell stack recycling and reuse market.

The fuel cell business is increasingly focusing on sustainability and competitiveness. Particularly in Europe, renewable energy has grown in popularity in recent years. The EU-funded HYTECHCYCLING project was established to improve recycling solutions and reduce crucial raw material use in hydrogen generation and fuel cell technologies. These kinds of projects are likely to promote the fuel cell stack recycling industry by discovering correct treatments for reusing the material rather than disposing of it as waste. This will help manufacturers build more environmentally friendly fuel cell technology. More sustainable energy conversion technologies, such as fuel cells, will play a growing role in the energy and transportation transition. Fuel cells, particularly polymer electrolyte membrane fuel cells (PEMFC), are already being employed in hydrogen-powered vehicles. With the widespread adoption of this technology, a greater number of this type of fuel cell will have reached the end of its useful life by 2030 at the latest.

The cost is a significant element that is connected to the rising commercialization of stationary fuel cells. The price of stationary fuel cell systems varies depending on their kind and use and includes capital expenses (equipment and installation), operating and maintenance costs, and fuel costs. As a result of the environmental advantages associated with their use, incentive programs and other financing possibilities have historically been made available at the state and federal levels. This has helped to keep fuel cell costs competitive with those of other technologies and supported their deployment. For instance, the Self-Generation Incentive Programme (SGIP) in California has encouraged the installation of more than 300 MW of stationary fuel cell systems that use natural gas and renewable biogas as fuel sources. Fuel cells are becoming less expensive due to recent market expansion, and several financing solutions are now available to achieve competitive price points in the lack of incentives.

The availability of fuel cells can be considerably impacted by reliability and durability. This is important for gaining end-user acceptability. For the fuel cell market to progress and increase operational tolerance and get end-user acceptability, trustworthy technology is needed. However, there is a sizable disconnect between current fuel cell development and end-user needs. Reliability Functionality, cost, performance (i.e., efficiency and dependability), and environmental impacts are all end-user acceptability criteria. A fuel cell with a motor performs the same functions as an IC engine. Fuel cells are environmentally safe and produce little noise; the key problem with fuel cells is performance, which includes efficiency and dependability. The former is not an issue because fuel cell efficiency is often significantly higher than that of IC engines. As a result, in addition to unforeseen repair and maintenance expenses, the largest possible technical hurdle to end-user adoption is reliability.

Fuel cell technology’s commercialization is hampered by issues like size, weight, and thermal and water management. These technologies must overcome increasingly difficult cost and durability obstacles in transportation applications. In stationary power applications where cogeneration of heat and electricity is sought, the utilization of PEM fuel cells might benefit from higher operating temperatures to improve performance. Due to the inadequacy of current compressor technology for fuel cell automobile applications, air management for fuel cell systems is a challenge. The minimal difference between the operating and ambient temperatures needs substantial heat exchangers, which complicates thermal and water management for fuel cells. Technology that enables cooling to be given from low heat rejected from stationary fuel cell systems must also be evaluated (for instance, by regenerating desiccants in a desiccant cooling cycle).

Agreements, product launches, partnerships, contracts, expansions, and production capacities are key strategies adopted by players in the fuel cell stack recycling and reuse market. In 2023, the Fuel Cell Stack Recycling and Reuse Market share has been consolidated by the top ten players accounting for 54.70% of the share. Major players in the fuel cell stack recycling and reuse market are Cummins Inc., Plug Power Inc, Ballard Power Systems, Johnson Matthey, Hensel Recycling Group, Gannon & Scott, Nedstack Fuel Cell Technology BV, Proton Power Systems PLC, Toshiba Energy Systems & Solutions Corporation, Toyota Motor Corporation, and others.

 In 2023, Nedstack made a partnership with ZBT and the partnership aims to enhance the capabilities of the fuel cell to a 1GW stack power capacity by 2027.

 In 2022, Toshiba ESS and Echandia agreed with the research, production, and distribution of batteries and fuel cell systems for maritime use and also to expand the sales of pure hydrogen fuel cells.

 In 2022, Johnson Matthey started recycling fuel cells in China. The factory, which is situated in Zhangjiagang, Jiangsu Province, refines and recycles the platinum group metal content from membrane electrode assemblies (MEA).