How to enter hydrogen market successfully : case study: Fortum O&M Services

Abstract

With growing concerns about climate change and the ongoing environmental damage caused by traditional fossil fuel energy, the need to transition to low-carbon energy systems is becoming increasingly urgent. The harmful impact of traditional fossil fuels on the environment highlights the urgent need for sustainable alternatives more than ever before. Green hydrogen generated with the help of electrolysis powered by renewable energy represents a promising solution with benefits ranging from decarbonisation to energy security and economic growth. The UK economy is already experiencing a growing interest towards green hydrogen which not only increases the hydrogen production capacity but also significantly increases the need for Operations and Maintenance services needed to keep green hydrogen production facilities driven by electrolysis technology operational.

This study focuses on the identification of O&M activities involved at a hydrogen production facility where the core production technology is electrolysis as well as studies the need for this service focusing specifically on the UK context. The object of this study is Fortum O&M Services, a company with 30 years of experience in the O&M business, which now studies green hydrogen production as a niche for business growth. To be able to do that, it is important to identify the knowledge needed to provide a high-quality and competitive service compare it with existing knowledge within the company, and eventually identify the knowledge gaps.

The study utilises both secondary sources and primary data collection methods, including hydrogen production technology expert interviews, O&M business expert interviews and internal company documents, to conduct an accurate analysis of Fortum O&M Services knowledge gaps.

The theoretical framework of this study includes theories such as Organisational Learning, Knowledge Management, Knowledge Management Systems, Knowledge Vacuum, Product Market Fit and Dynamic Capabilities. The relationship between the theories was explained and as a result, a Market Entry Decision Building Process model was suggested when entering a new market. These guide the research design and data interpretation.

The findings contain visualisations which contribute to better knowledge transferring as outlined in the Organisational Learning theory. This helps to perceive information even for a reader with little knowledge of green hydrogen production, O&M business, or electrolysis technology. The final findings are presented in the form of tables followed by explanatory text making the findings more informative for a reader. Discussions contain a comprehensive list of recommendations targeted to the case company and future research.

The thesis offers a theoretical perspective on the application of the O&M concept on green hydrogen production, recognising that its practical implementation requires further study into engineering technology and field testing. These efforts are critical in achieving a comprehensive understanding of the full range of capabilities, market potential and final scope of the service.