Hydrogen electrolysis is gaining attention as industries search for cleaner energy sources and more sustainable production methods. For sectors such as manufacturing, logistics, FMCG, and import/export, understanding how hydrogen electrolysis works is increasingly important when planning long-term energy and sourcing strategies.

This article explains the hydrogen electrolysis process, its benefits, challenges, and where it fits into global and African trade. It also highlights how Wigmore Trading can support businesses exploring hydrogen-related supply chains.

How Does Hydrogen Electrolysis Work: The Basic Principle

At its core, hydrogen electrolysis is a chemical process that uses electricity to split water (H₂O) into hydrogen (H₂) and oxygen (O₂).

The process takes place in an electrolyzer, which contains:

• An anode (positive electrode)

• A cathode (negative electrode)

• An electrolyte that allows ions to move

When electricity passes through water:

• Oxygen forms at the anode

• Hydrogen forms at the cathode

The hydrogen gas can then be captured, stored, or transported for industrial use. When renewable electricity is used, the result is green hydrogen, a low-carbon energy carrier.

Key Components in How Hydrogen Electrolysis Works

Understanding the main components helps clarify how hydrogen electrolysis works in practice.

Electrolyzers

Electrolyzers are the central units that perform water splitting. Common types include:

• Alkaline electrolyzers

• Proton Exchange Membrane (PEM) electrolyzers

• Solid Oxide Electrolyzers

Each type differs in efficiency, cost, and operating conditions, which affects commercial adoption.

Electricity Source

Electricity is a major cost driver. Renewable sources such as solar, wind, and hydropower are increasingly paired with electrolysis to reduce emissions and operating costs.

Water Supply

Electrolysis requires clean water. In some regions, desalination or water treatment is needed, adding to infrastructure planning.

How Does Hydrogen Electrolysis Work Compared to Other Hydrogen Production Methods?

Traditionally, hydrogen has been produced using fossil fuels through processes like steam methane reforming. While effective, these methods emit significant CO₂.

Hydrogen electrolysis stands out because:

• It can be powered by renewable energy

• It produces no direct carbon emissions

• It supports energy diversification

For businesses involved in sustainable sourcing or low-carbon logistics, this makes electrolysis an increasingly attractive option.

Industrial Applications of Hydrogen Electrolysis

Understanding how hydrogen electrolysis works is only part of the picture. Its real value lies in how hydrogen is used across industries.

Manufacturing and Heavy Industry

Hydrogen can replace fossil fuels in steelmaking, chemicals, and high-temperature processes.

Energy Storage and Power Generation

Hydrogen acts as an energy storage medium, balancing intermittent renewable power and supporting grid stability.

Transport and Logistics

Hydrogen fuel cells are being explored for trucks, ships, and port equipment, especially where battery solutions are less practical.

These applications are particularly relevant for African trade corridors and export-driven economies where energy reliability is critical.

Challenges in Hydrogen Electrolysis and Practical Solutions

Despite its promise, hydrogen electrolysis faces several challenges.

High Initial Costs

Electrolyzers and renewable power infrastructure require significant upfront investment.

Practical solution: Businesses can reduce risk by working with experienced trading and logistics partners like Wigmore Trading, which can support sourcing, equipment procurement, and supply chain coordination.

Storage and Transportation

Hydrogen is lightweight and requires specialized storage and transport systems.

Practical solution: Integrated logistics planning and international trade expertise help manage these complexities, especially when importing or exporting hydrogen-related equipment or inputs.

Infrastructure Gaps

Many regions, including parts of Africa, are still developing hydrogen infrastructure.

Practical solution: Strategic partnerships and phased implementation allow businesses to enter the market gradually while infrastructure expands.

How Wigmore Trading Supports Hydrogen-Related Supply Chains

As hydrogen electrolysis projects scale, businesses need reliable partners across sourcing, logistics, and distribution.

Wigmore Trading can help by:

• Supporting procurement of industrial equipment and inputs

• Managing cross-border logistics and customs clearance

• Facilitating trade between African markets and global suppliers

• Advising on supply chain efficiency and compliance

While Wigmore Trading is not a hydrogen producer, its experience in international trade and logistics makes it a valuable partner for companies involved in hydrogen electrolysis projects and related industries.

Why Understanding How Hydrogen Electrolysis Works Matters for Trade

For importers, exporters, and distributors, hydrogen electrolysis represents more than an energy trend. It signals:

• New demand for industrial equipment

• Growing trade in renewable infrastructure

• Long-term shifts in energy-dependent supply chains

Businesses that understand these dynamics are better positioned to adapt and compete.

Wigmore Trading can help you navigate these emerging opportunities.

Get in touch with our team to learn more about sourcing, logistics, and trade support for energy-related projects.