Green Hydrogen Equipment Makers Poised for Rapid Growth in China

China’s capacity to manufacture electrolyzers – the equipment used to make green hydrogen – could grow about 20 times by 2028 as costs of the clean energy source plunge, according to CICC.

(Bloomberg) — China’s capacity to manufacture electrolyzers – the equipment used to make green hydrogen – could grow about 20 times by 2028 as costs of the clean energy source plunge, according to CICC.  

The zero-emissions fuel, produced by using renewable energy to extract hydrogen from water, is on track to achieve cost parity with other methods fueled by natural gas or coal as soon as the end of this decade, which will drive rapid deployments, CICC analysts wrote in a note. 

Current production costs of green hydrogen are about 20 yuan ($2.90) a kilogram, compared to 10 yuan a kilogram using coal and 17 yuan a kilogram using natural gas. Large-scale deployments, additional renewable energy capacity and rising carbon prices will all combine to make the newer technology competitive.

China’s electrolyzer market could be worth about 50 billion yuan by 2028, when domestic demand for the equipment will reach 40 gigawatts and green hydrogen production is likely to top 4 million tons, the analysts wrote.

Read more: China Seeks to Control Hydrogen Energy, Eclipse Western Rivals

Leading energy firms including China National Petroleum Corp. are among those investing in the sector, as the nation aims to challenge US and European competitors to meet rising demand.

Global electrolyzer shipments should double or triple in 2023 to as much as 3.3 gigawatts, with China potentially accounting for about 1 gigawatt, BloombergNEF wrote in a report this month.

The Week’s Diary

(All times Beijing unless noted.)

Wednesday, March 29

  • CCTD’s weekly online briefing on China’s coal market, 15:00
  • Cnooc earnings briefing at 17:00 in HK
  • International Iron Ore Market Seminar in Qingdao, Shandong
  • Boao Forum in Hainan, China, day 2
  • EARNINGS: PetroChina, Cnooc, Ganfeng Lithium, Metallurgical Corp.

Thursday, March 30

  • Fenwei China coking coal summit in Taiyuan, Shanxi
  • Boao Forum in Hainan, China, day 3
  • PetroChina earnings briefing at 16:30 in HK
  • EARNINGS: Maanshan Steel, Angang Steel, Shandong Steel, Tianqi Lithium, Xinjiang Goldwind, GCL Tech, Cosco Shipping

Friday, March 31

  • China official PMIs for March, 09:30
  • China weekly iron ore port stockpiles
  • Shanghai exchange weekly commodities inventory, ~15:30
  • Boao Forum in Hainan, China, day 4
  • EARNINGS: Citic Ltd.

On The Wire

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Syngenta Group said details are unclear on the Shanghai stock exchange’s canceled hearing for the company’s proposed 65 billion yuan ($9.4 billion) initial public offering, 21st Century Business Herald reported.

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