The electrolyzer industry launches an initiative to counter competitive oversaturation

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According to reports from Sinochem New Network, journalists learned from the Hydrogen Energy Branch of the China Industry Development Promotion Association (referred to as the “Hydrogen Energy Promotion Association”) that recently this organization, together with 40 manufacturers of equipment related to the hydrogen energy sector, issued an initiative for the healthy development of China’s electrolyzer industry. Addressing issues such as disorderly competition, artificial inflation of indicators, and price dumping, the initiative puts forward 10 key actions aimed at helping the electrolyzer industry escape the cycle of excessive competition. These 40 manufacturers include leading domestic hydrogen energy companies such as Xi’an LONGi Hydrogen Energy Technology Co., Ltd., Sunshine Hydrogen Energy Technology Co., Ltd., Suzhou Qingqi Ji Technology (Group) Co., Ltd., CSSC (Handan) Pairei Hydrogen Energy Technology Co., Ltd., Huadian Science & Industry Co., Ltd., and Dongfang Electric (Chengdu) Hydrogen Energy Technology Co., Ltd. A responsible official from the Hydrogen Energy Promotion Association stated that electrolyzers are the key equipment in the process of producing hydrogen from renewable sources, and the technical level as well as the reliability of such equipment are crucial factors determining the development of China’s hydrogen energy industry; it is therefore essential to establish a healthy and orderly ecosystem for industrial development. To promote industry self-discipline and encourage business operators to work together to maintain a fair competitive environment, in response to the competitive pressures and various irregularities in the electrolyzer market, the Hydrogen Energy Promotion Association invited electrolyzer manufacturers, along with manufacturers of upstream and downstream equipment, design firms, and project owners, to hold a seminar under the theme of \"Rejecting Competitive Pressures, Building a Sustainable Ecosystem, and Moving Towards a Genuine Market Economy.\" A joint \"Call to Action\" was also issued by all stakeholders in the industry. The \"Initiative\" puts forward key proposals in areas such as cognitive development, competition norms, and development pathways: avoiding satellite-launching project plans and promoting a false sense of prosperity in the industry ； Avoid blindly being pessimistic and dismissing the development of the industry due to the cancellation of normal projects ； Avoid blind promotion of the device’s core performance metrics ； Avoid price competition below cost levels ； Avoid chaos in rankings such as industry market share and shipment volumes ； Focus on technological innovation rather than mere scale expansion ； Establish industry standards to regulate market order ； Approach policy support rationally and avoid relying on subsidies to survive ； Strengthen industry exchanges to jointly develop the market ； Regulate operations in overseas markets and safeguard China’s brand image. A responsible official from the Hydrogen Energy Promotion Association stated that the current average cost of alkaline electrolyzer units with a capacity of 1,000 standard cubic meters per hour is between 3 million and 3.5 million yuan per unit (excluding costs related to separation and purification, power supply, as well as research and development expenses). It is worth noting that in January this year, a project in the northwest region announced an average winning bid price for alkaline electrolyzers of around 3.4 million yuan per unit (excluding separation and purification systems as well as power supplies). By September, the average winning bid price for alkaline electrolyzers in a project in Inner Mongolia had dropped to 2.7 million yuan per unit (excluding separation and purification systems as well as power supplies; however, an analysis system is required, costing between 60,000 and 100,000 yuan). Within 8 months, the average winning bid price for domestic alkaline electrolyzers dropped by nearly 21%, far exceeding the reasonable price reduction resulting from technological innovation. “Next, the Hydrogen Energy Promotion Association will work to put the \"Initiative\" into practice, and through industry self-regulation and standard-setting, guide the sector from \"low-level competition\" toward \"high-quality development\". ”The official stated that, driven by both policy guidance and industry collaboration, the electrolyzer industry is taking collective action to overcome the challenges of competitive intensification, thereby providing a model for the orderly development of the hydrogen energy sector as well as other strategic emerging industries.