China Leading Global Electrolyser Installations: A Deep Dive into the Hydrogen Industry
Key Ideas
- China is projected to lead global electrolyser installations in 2024, accounting for nearly 70% of the capacity, driven by the production of low-emissions green hydrogen.
- Despite the increasing demand for green hydrogen, production remains low globally, with most hydrogen still being produced from fossil fuels.
- China's electrolyser manufacturing capacity accounts for 60% of the world's total, leading to expectations of cost reduction and industry growth in the country.
- While the hydrogen sector in China is anticipated to rapidly expand, challenges such as slow infrastructure development and concerns about overcapacity exist, prompting industry players to address issues of storage and transportation.
China is poised to dominate the global hydrogen industry by leading in electrolyser installations, with an anticipated 70% of the capacity in 2024. Electrolysers, crucial for producing green hydrogen, are in focus as global demand for sustainable solutions rises. Although global hydrogen demand is significant, green hydrogen production remains low, with most coming from grey hydrogen sources. China itself only produces 1% green hydrogen, highlighting the room for growth in sustainable practices. As China hosts a majority of the world's electrolyser manufacturing capacity, cost reductions are expected, mirroring trends seen in the solar and battery industries. The country's hydrogen sector is expected to grow rapidly, driven by ambitious government plans, but challenges like slow infrastructure growth and concerns of overcapacity exist. Notably, Chinese hydrogen electrolyser exports are surging, especially to Europe and the Middle East, despite the EU's recent move to exclude Chinese-manufactured electrolysers from an auction. Industry experts emphasize the need to address bottlenecks in storage and transportation while also balancing investments in electrolysis and fuel cell technologies. The industry defends against concerns of overcapacity, noting that planned capacity may not translate to actual production, with manufacturers producing based on demand.
Topics
Middle East
Renewable Energy
Investment
Green Technology
Industry Growth
Infrastructure Development
Export Market
Manufacturing Capacity
Overcapacity Risk
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