Will China capture the electrolyser market?, Pg10

Key Highlights:

• China leads in hydrogen production, reaching 36.5 million tonnes annually by 2024.
• China produces 1,20,000 tonnes of green hydrogen, nearly half of the world's output.
• China dominates nearly 85% of global Alkaline (ALK) electrolyser manufacturing capacity.
• ALK electrolyser prices in China dropped 20% from 2023 to approximately $167/kW in 2024.

Detailed Insights:

• Green hydrogen production relies on electrolysers, similar to the role of photovoltaic (PV) modules in solar power.
• ALK electrolysers are cheaper but less efficient than Proton Exchange Membrane (PEM) electrolysers due to fluctuating loads.
• China's dominance in ALK electrolysers is attributed to state subsidies, integrated supply chains, and control over raw materials.
• Using Chinese ALK electrolysers can offer up to 45% cost advantages in setting up hydrogen production plants in Europe.
• PEM electrolysers offer higher efficiency and purity but rely on expensive precious metals like iridium and platinum.
• Chinese firms like LONGi and Envision are expanding into green hydrogen, constructing production facilities overseas.
• Countries are prioritizing the green hydrogen sector with national plans, potentially restricting Chinese imports.
• Supply chain security concerns may limit the unhindered entry of Chinese products into the green hydrogen market.

Key Concepts Involved:

• Green Hydrogen: Hydrogen produced using renewable energy sources, minimizing carbon emissions.
• Electrolyser: A device that uses electricity to split water into hydrogen and oxygen.
• Alkaline (ALK) Electrolyser: A type of electrolyser that uses an alkaline electrolyte solution.
• Proton Exchange Membrane (PEM) Electrolyser: A type of electrolyser that uses a solid polymer electrolyte.