Source:Renewablesnow
The Chinese market should serve as proof of how hydrogen can successfully evolve in a larger context and thanks to the cost competitiveness achieved locally, domestic original equipment manufacturers (OEMs) are set to become significant technology exporters, according to an official involved in the sector.
Source: Hygreen Energy.
Ethan Hugh, the global marketing director of electrolyser maker Hygreen Energy, recently spoke to Renewables Now about the current state of the Chinese hydrogen market and its prospects. The interview was done in the context of a new intelligence report developed in collaboration with World Hydrogen Leaders for the upcoming World Electrolysis Congress in Cologne, Germany that is scheduled for February 10-13, 2025.
According to Hugh, the experience and scale amassed so far by Chinese hydrogen companies will expedite local market adoption and this would prove beneficial to other markets around the world, as well.
“We expect China's hydrogen market to continue its growth trajectory, fueled by demand stemming from its decarbonisation target timelines, increasing infrastructure, cost competitiveness, and greater confidence in pilot projects.
“The domestic market is supported by its own well developed supply chain and integrated ecosystem, including large established manufacturers of electrolysers, fuel cells, balance-of-plant and other important equipment for the sector. This developed ecosystem ultimately results in systems that are better integrated, more proven, and more cost competitive, which in turn eases developer timelines for financing, engineering and project execution,” he stated.
According to Hugh, there are signs of positivity among electrolyser suppliers, with sales agreements and product delivery coming through. He noted that various electrolyser makers in China have recently announced production capacity expansions, which could indicate their confidence in demand estimates for the coming years.
“With capacity expansions, the economies of scale will further drive costs down from Chinese OEMs. As a result of cost competitiveness, we may see many of China’s hydrogen sector OEMs emerge as significant exporters of their technology, including electrolysers and fuel cell components. Moreover, this increased capacity can mean shorter delivery timelines that can meet project execution and incentive deadlines, further increasing their global competitiveness. This scenario will propel China’s hydrogen sector to thrive with an export market alongside a robust local market demand.”
Backed by both Chinese and Spanish investors, Hygreen Energy is engaged in the production and supply of Alkaline, Proton Exchange Membrane (PEM), and Anion Exchange Membrane (AEM) electrolysers. The company is based in Beijing and manufactures in Shandong at the former facility of Beijing SinoHy Energy Co Ltd, which amalgamated under Hygreen Energy in the summer of 2024.
Hygreen Energy itself is one of those Chinese companies seeking to expand overseas. This past year, it formed a number of partnerships and signed a few after-sales support deals all over the world.
In Spain, the company intends to build a factory in Malaga for European standard-compliant electrolysers and to take part in green hydrogen production projects alongside strategic partners, targeting up to 1.12 GW in Huelva, Andalucia.
In the Americas, Hygreen Energy recently appointed Paul Browning as a senior advisor in North America and entered into a channel partnership agreement in Brazil with GH2 Global.
In China, Hugh unveiled that in recent months the company got a new 40-MW electrolyser purchase order from a domestic customer. He believes that the Chinese government will continue to support the sector with its ambitious targets, subsidies and incentives.
“With this broad and integrated push for hydrogen adoption, and a growing number of hydrogen projects being executed, China’s hydrogen sector is well positioned to thrive in the coming years,” Hugh concluded.
Hygreen Energy currently has the capacity to produce 2 GW of electrolysers a year and targets expanding to 5 GW by 2025, depending on demand in Europe and other key markets.