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Country Is Ahead of the US and Europe in Green Hydrogen Production. China Has Taken the Lead and Is Manufacturing Electrolysis Systems, a Key Technology in Green Hydrogen Production.
Due to its cheap labor and advanced technology in the sector, the country is ahead of Europe and the US in the race for sustainable fuel. The information comes from the Servimedia website. With a more advanced production and supply chain, China aims to produce electrolysis systems a third cheaper than the United States, for example, its main competitor in the sector.
According to a Bloomberg report, the average cost of Chinese electrolysis systems is $344 per kilowatt, while in Europe and the US, the average price is around $1,200. In this way, the country leads and solidifies itself as one of the major global producers of green hydrogen. Essentially, electrolysis is a very common technique in the green hydrogen extraction industry, as it allows the decomposition of water into its hydrogen and oxygen atoms. Moreover, if the process uses renewable sources, it does not generate CO2 emissions.
Chinese Green Hydrogen Production Is Ahead of the Competition
Today, green hydrogen is considered a key fuel for the decarbonization of industry and transport. Thus, China has doubled its efforts in production, aiming to achieve substantial fuel production by 2025. Among its goals is the production of 200,000 tons of green hydrogen, as well as the production of 50,000 vehicles that use this fuel. The Chinese government also aims to establish a complete hydrogen industry, covering the transport, industry, and energy storage sectors. Additionally, it aims to significantly improve the share of green hydrogen in the country’s consumption.
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The report created by Bloomberg indicates that China has a larger electrolyzer manufacturing industry, even before the popularization of green hydrogen, especially due to industrial demand in sectors such as polysilicon manufacturing. Today, Sinoy Energy is one of the main Chinese companies in the manufacturing of electrolysis and green hydrogen. In the future, the company will be called Haygreen, due to the influx of European and Spanish capital from the China Link ESGt fund, chaired by Spaniard Javier Romero, who has extensive experience in green hydrogen production and renewable energies.
The company is already known for its technologies and has extremely modern alkaline water electrolysis hydrogen equipment. In its early days, the company installed its first electrolyzer station in Datong City, Shanxi province, to provide green hydrogen to over 50 buses. Another point highlighted in the Bloomberg report is that, despite additional transportation and installation costs, Chinese systems can be delivered to international markets at a significant discount to Western manufacturers. Thus, the report believes that China’s share in European and American sales will be below 30% by 2025.
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