The chemical reaction in fuel cells is facilitated by a polymer electrolyte membrane, or PEM, and Bosch will use the same technology for electrolysis stacks.
"We work with fuel cells around the clock, so our expectation is that some of this technology can be transferred to help come up with a cost-optimized [electrolysis] stack," Pauer said.
Bosch CEO Stefan Hartung said Wednesday that the war in Ukraine has highlighted the urgency to develop new sources of energy, including hydrogen.
"Our concern is to secure energy supplies, with the price of oil and gas remaining at a very high level," he said.
"Green hydrogen is essential if we want to make our world carbon neutral," Hartung added. "Hydrogen can help to mitigate global warming in every sector."
Bosch will work with partners to combine the stack with "smart modules," including power electronics, control units and sensors, Pauer said.
"We don't want to build electrolysis plants in the sense of a power plant," he said. "We want to be a component supplier; this is our core business." Customers can use the modules to build their own plants.
"We're surprised by how strongly the market is growing," Pauer added, noting that investments in electrolysis had doubled in Europe in recent years. "The world is realizing that we need a different energy source. I don't think we can solve our energy issues without hydrogen."
Germany's Bosch ranks No. 1 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $46.5 billion in 2020.