China, already a leader in electric vehicles, lithium-ion batteries, and photovoltaic technology, is rapidly emerging as a key player in the global hydrogen electrolyzer market. These devices, which use electricity to split water into hydrogen and oxygen, have traditionally served domestic industries like glassmaking and steel. However, with the rising global demand for green hydrogen, China’s hydrogen electrolyzer exports are witnessing an unprecedented surge.
Export Boom Driven by Global Green Energy Demand
As the global shift towards green energy intensifies, particularly in Europe and the Middle East, Chinese manufacturers like Beijing Peric Hydrogen Technologies Co. are seeing a significant increase in demand. The company’s export revenue has doubled for three consecutive years, reaching nearly 300 million yuan (USD 41.6 million) in 2023. This growth is expected to continue, with projections indicating a tenfold increase in orders over the next decade.
Shandong Saikesaisi Hydrogen Energy Co. anticipates its overseas revenue will surpass domestic sales by the end of the year, reflecting the broader trend of Chinese companies increasingly focusing on international markets. This surge is driven by the expanding global hydrogen market, which the International Energy Agency estimates will reach 528 million metric tons by 2050, with 60% produced via water electrolysis.
Strategic Expansion and International Partnerships
To meet this soaring demand, Chinese electrolyzer manufacturers are scaling up production capabilities. For instance, Beijing Peric has ramped up its production from a few dozen units to approximately 350 last year, with plans to exceed 1,000 units next year. At least half of this output is earmarked for export.
Companies like Sinohydo are also expanding their production in key regions such as Inner Mongolia and the Yangtze River Delta, while actively pursuing strategic partnerships in Europe, the Middle East, and Japan. These efforts aim to capitalize on the growing demand for renewable energy hydrogen projects, particularly in Europe, where the EU Hydrogen Strategy sets ambitious targets for renewable hydrogen production.
Challenges and Opportunities in the Global Market
Despite the rapid growth, Chinese manufacturers face challenges, particularly in navigating the complex landscape of international standards and certifications. The diversity of regulations across different markets presents significant hurdles, with high costs and lengthy timelines for product certification. Additionally, the integration of electrolyzers with back-end separation and purification units requires careful alignment with customer-specific needs, further complicating the export process.
Nevertheless, the global shift towards green energy presents a significant opportunity for Chinese companies to expand their market presence. With regions like the Middle East also accelerating their energy transition, the demand for hydrogen electrolyzers is set to rise, positioning China as a dominant force in the global hydrogen market.
Source: chinadaily.com.cn
