Quest One, a subsidiary of the Volkswagen Group, stands at a very important crossroads. More than that, it leads through example and favorably shapes the future of the green hydrogen marketplace. Based in the Hamburg metropolitan area of Germany, Quest One focuses on producing electrolysers that use advanced proton exchange membranes. These electrolysers are at the heart of the company’s mission. This enables renewable electricity to be stored and used at times of highest demand, such as in the winter months, by transforming surplus renewable electricity into hydrogen.
The Volkswagen Group is reportedly evaluating strategic options for Everllence, the parent company of Quest One, raising questions about the future of its innovative hydrogen initiatives. Quest One had to pivot pretty hard earlier this year. They forced layoffs. They laid off 20% of their workforce in Germany! The company suffers a heavy blow, but it remains resolute. Its mission is to green hydrogen at an eventual cost of €4 per kilogram.
The Hamburg facility is home to smart tech-leading robotics that increase manufacturing efficiency. These robots perform their tasks faster and with greater reliability than human workers. This unique production capability is what allows Quest One to maintain its reputation for rigorous quality production. The plant could easily accommodate nearly twice its present workforce. This indicates strong future growth potential if market conditions resurface.
Nima Pegemanyfar, Quest One’s executive vice president for customer operations, pointed out the headwinds the market is up against.
“The market itself is not picking up organically,” – Nima Pegemanyfar
This sobering statement brings to the forefront the unknowns within the industry. Companies such as Quest One are scrambling to cement a foothold in the rapidly evolving green hydrogen field.
Quest One is ornamental in vivid detail and manufacturing. It’s focused on developing hydrogen storage technologies at depths of 1,000 meters or more below ground. By doubling down on this approach, we can build a sustainable supply chain that is able to weather periods of high and low demand across the year. The hydrogen stored in this way would prove especially useful in the colder time horizon of winter months when energy needs are highest.
Quest One is already making moves to establish new hydrogen-powered freight corridors. These networks will link Germany to incredibly far-flung markets such as India, Saudi Arabia, Chile, and Namibia. This ambitious plan is an indication of the company’s long-term strategy to position green hydrogen in worldwide energy markets.
Quest One’s electrolysers are relatively small and rectangular, about the size of a shopping basket. They boast a heavy-duty metal mesh that increases durability and performance. These products represent the critical pieces in the creation and transportation of green hydrogen.
Going forward, the Volkswagen Group is still weighing whether to continue Everllence. Industry experts stress that time is of the essence to companies such as Quest One. Ms. Jemelkova provided a refreshingly sober view on where the green hydrogen industry is really at today.
“It’s not hype anymore. But it’s not doom and gloom.” – Ms Jemelkova
This sentiment indicates that there is still work to be done. It spotlights the enormous opportunity for growth and innovation facing the burgeoning sector.