China's Electrolysers: Shaping the Global Market with Cost-Effective Technology
Key Ideas
  • China's low-cost alkaline electrolysers are disrupting the global market by offering significant cost savings, putting pressure on European manufacturers.
  • The country's mature manufacturing capabilities and vertical supply chain integration have enabled China to dominate around 60% of the world's electrolyser manufacturing capacity.
  • Chinese OEMs are expanding their business into electrolysers, leveraging their expertise in the renewables sector and driving fast capacity deployment with automated production processes.
  • Chinese electrolysers, particularly in pressurised alkaline technology, are expected to continue their global advantage through 2030, with significant cost savings projected for projects in Germany.
The article discusses China's competitive edge in the production and export of electrolyser technology, particularly focusing on its low-cost alkaline electrolysers. China's mature manufacturing capabilities and decades of experience have allowed the country to cut total investment costs in half, posing a significant threat to European manufacturers. With around 60% of the world's electrolyser manufacturing capacity, China is expected to maintain its dominance in the market. The article highlights the country's success in pressurised alkaline technology, projecting substantial cost savings for projects in Germany by 2030. Chinese OEMs are actively seeking overseas opportunities, with over 200MW of overseas orders secured to date. While Chinese PEM technology currently lags behind Western counterparts, the country's strategic cost advantages position it for future growth. Despite the potential risks of trade barriers in the EU, China's electrolyser export prices are significantly lower than those in Europe. The article also touches on the challenges of additional costs for export, driven by the need for higher quality materials and certification fees. Overall, China's advancements in electrolyser technology and its extensive manufacturing capabilities are reshaping the global market, offering cost-effective solutions for the energy transition.
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