Developments related to electrolyzers in the first half of 2022: electrolyzer projects have also entered a period of rapid growth
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Since 2022, the electrolyzer project has also entered a period of rapid growth. On March 23, 2022, Shouhang High-Tech issued a announcement regarding the approval of its photovoltaic-based hydrogen production and energy storage demonstration project. The announcement stated that Gansu Shouhang Wind, Solar and Hydrogen Energy Co., Ltd., a wholly-owned subsidiary of Shouhang High-Tech, had received approval from the Development and Reform Bureau of Suzhou District, Jiuquan City, Gansu Province, for the “Photovoltaic Hydrogen Production and Energy Storage Demonstration Project” carried out by this company; the project involves the construction of an alkaline water electrolysis system capable of producing 1,000 Nm3/h of hydrogen. On March 23, three sets of alkaline water electrolysis hydrogen production equipment with a capacity of 1,000 Nm3/h were successfully manufactured and shipped by Caokaili. The equipment was purchased by a well-known domestic photovoltaic materials company. The equipment can heat up to full load in just 2 minutes at 55°C, with a response speed comparable to that of pumped storage systems. On March 24, Hunan H2 Relax Technology Development Co., Ltd. held a simple launch ceremony for the 500 cubic meters per hour alkaline electrolysis water generation equipment that it developed, designed, and manufactured itself. The highlight of this product is its DC power consumption of 3.8 degrees per cubic meter, which significantly reduces the electricity required by the electrolyzer; it also enables rapid startup in just three minutes, overcoming the problem of long startup times associated with alkaline electrolyzers. On March 30, Baofeng Energy stated on the investor interaction platform that it currently has a production capacity of 30,000 standard cubic meters per hour of green hydrogen, and in the future the company will continue to expand this capacity by adding another 30,000 standard cubic meters per hour of green hydrogen each year. On March 31, Yangguang Hydrogen Energy and Zhengneng Group held a ceremony to sign a cooperation agreement online, aiming to deepen their collaboration in the field of \"green electricity + green hydrogen.\" Together, they plan to develop the \"Inner Mongolia Shengyuan Zhengneng Integrated Hydrogen Production and Refueling Project,\" which is located in Yijinhuoluo Banner, Ordos City. The project requires an investment of 1.396 billion yuan, and it is planned to have an electrolysis capacity of 6,000 Nm3/h for hydrogen production. On April 2, two sets of alkaline electrolytic water hydrogen production equipment with a production capacity of 800 Nm3/h were successfully manufactured and shipped from Kaokaili. The equipment was purchased by a leading enterprise in China’s polysilicon industry. On April 6, the groundbreaking ceremony for Sinopec’s Zhongyuan Oilfield megawatt-scale photovoltaic and wind-powered PEM water electrolysis hydrogen production project was held. Once completed, this project will become Sinopec’s first integrated facility of its kind, featuring megawatt-scale PEM hydrogen production, storage, transportation, and refueling systems all in one place. On April 8, the unveiling ceremony for Guofu Hydrogen’s first 1000 Nm/h alkaline water electrolyzer was held in Zhangjiagang. The 1000 Nm3/h alkaline water electrolyzer models launched by Guofu Hydrogen Energy this time utilize a new electrode processing technique that improves hydrogen evolution efficiency and reduces energy consumption ； An optimized 3D electrode structure is employed, along with a specialized coating that increases the electrode’s surface area ； The surface of the diaphragm is modified with polymers and inorganic nanoparticles, which effectively enhances its hydrophilicity, ionic conductivity, and high-temperature resistance, reduces the voltage drop across the diaphragm, further increases the current density, and boosts hydrogen production. On April 12, three sets of hydrogen production equipment for water electrolysis with a capacity of 1,000 Nm3/h from LONGi Hydrogen Energy were successfully shipped. This equipment utilizes the world’s leading alkaline electrolysis water hydrogen production technology and has been sent to a project site in the western region. On April 15, the new production facility of Suzhou Xibeiyou Hydrogen Energy Technology Co., Ltd., located north of Chunqiu Road and east of Wangzhuang Road in Xiangcheng District, Suzhou, with a total construction area of around 38,700 square meters, officially commenced construction. It is planned to produce 1 GW of hydrogen energy equipment per year. Previously, Hibeiyou Hydrogen’s first 50 cubic meter alkaline water electrolysis hydrogen production system was officially launched in Suzhou, Jiangsu, in January this year. Xibeyou stated that it is currently producing hydrogen production systems using 1,000 cubic meters of alkaline water for electrolysis, and new types of electrolyzers are also in the process of being designed and developed. From April 19 to 26, Periy Hydrogen’s international market team secured several new contracts: it signed a supply agreement with an American new energy company for 5MW containerized hydrogen production equipment, marking the first time that such equipment was exported overseas in a 5MW capacity ； A supply contract for 2MW hydrogen production equipment, including hydrogen compression and filling systems as well as oxygen purification systems, was signed with a gas company in Malaysia ； Received an order from a well-known South Korean chemical company and signed a contract for 1 set of PEM hydrogen production equipment ； Signed a supply contract for 1 set of 100 cubic meters of hydrogen production equipment with a well-known steel company in India ； Two supply contracts were signed with an energy company in Sweden, providing one set each of hydrogen production and hydrogenation integrated equipment with a maximum hydrogenation capacity of 500 kg/day and 200 kg/day, respectively. On April 19, Foshan Gaoming Fote Hydrogen Production Development Co., Ltd. issued the \"Public Notice on the Single Source Selection for the Hydrogen Production and Compression/Refilling Equipment Projects of the Gaoming Hydrogen Production Project carried out by Foshan Gaoming Fote Hydrogen Production Development Co., Ltd.\" ； For this project, Fote Steel intends to purchase 30 sets of Kaihaoda electrolytic water hydrogen production equipment with a capacity of 1,000 cubic meters per hour; the total cost is expected to be 344.9 million yuan. On April 7, Shanghai Hanxing Energy reported that the 8 sets of modular electrolytic hydrogen (oxygen) purification equipment, designed and manufactured by the company, were successfully delivered to the Baofeng Energy project site recently. The hydrogen purification and oxygen purification units provided for this client are each capable of handling a flow rate of 5,000 Nm3/h. There are five hydrogen purification skid units and three oxygen purification skid units, all of which represent the largest capacity available in China for such purification units used in electrolysis water systems. On May 6, the results of the bidding process for the hydrogen production equipment used in Sinopec Xinxing’s green hydrogen demonstration project in Kuche, Xinjiang, were made public. Cockrell Engineering, LONGi Hydrogen Energy, and Institute 718 were selected to supply the electrolysis equipment required by Sinopec. The Green Atmosphere Demonstration Project in Kuche, Xinjiang will procure 52 alkaline electrolyzers with a single-cell hydrogen production capacity of 1,000 Nm3/h. On May 31, Inner Mongolia Energy Co., Ltd., a subsidiary of **Power Investment Group, signed a cooperation agreement with Ely Green Energy to jointly develop the EOD project in the Kubuqi Desert in Hangjin Banner, Inner Mongolia – an integrated project that combines wind, solar, hydrogen production, and storage technologies – as well as projects aimed at rural revitalization. By utilizing this integrated technology approach, the project will enable the use of green electricity and green hydrogen; approximately 900 million cubic meters of green hydrogen can be produced annually, which will supply Ely Green Energy’s two industrial parks for the production of green ammonia, green fertilizers, and green alcohols, thereby contributing to the development and transformation of the Kubuqi Low-Carbon Park. On June 4, the electrolysis equipment capable of producing 100 kilograms of hydrogen per day, manufactured by Shenzhen Ruilin Technology Co., Ltd., was shipped. This hydrogen production equipment features high dynamic response and the ability to operate over a wide load range (with load changes from 10% to 110% achievable within 20 seconds); its performance is comparable to that of PEM systems, allowing it to be used in conjunction with renewable energy sources entirely offline. On July 12, Coklear successfully held the shipment ceremony for the first batch of 4 electrolyzers with a capacity of 1,000 Nm3/h for Sinopec Xinxing Petroleum Company’s green hydrogen demonstration project in Kuche, Xinjiang. In this project, Coklear has adopted a modular hydrogen production system that utilizes 4 electrolyzers with a capacity of 1,000 Nm3/h each, along with one gas-liquid separation unit. This system features innovative, efficient, and integrated equipment technologies, providing strong support for China’s transition to clean energy; it also serves as a milestone-style example for the development of the green hydrogen industry. According to GGII data, in 2021 the market size for hydrogen production equipment using electrolysis in China exceeded 900 million yuan, with shipments reaching over 350 MW. In 2022, the market demand for electrolysis water hydrogen production equipment in China is expected to reach 730 MW, nearly doubling compared to 2021 ； By 2025, the domestic market demand for hydrogen production equipment using electrolysis will exceed 2 GW, representing a growth of more than 6 times compared to 2020. Under these circumstances, facing the rapidly growing market for electrolysis-based hydrogen production equipment, an increasing number of central and state-owned enterprises, listed companies, as well as domestic and foreign hydrogen energy firms are making significant efforts to enter this market. Examples of such companies include Sinopec, CNPC, Guodian Investment, Guofu Hydrogen Energy, LONGi, China Huaneng, Sungrow Power Supply, and Cowell Jingli. Industry experts analyze that as downstream orders continue to surge, the overall technical level in this field is also expected to see further improvement, and the pace of cost reduction will accelerate, pushing the entire electrolytic water hydrogen production equipment industry into a new phase.
The cost of alkaline electrolyzers produced by domestic manufacturers such as Coulter Engineering and the 718th Research Institute of China State Shipbuilding Corporation is only a fraction of that of Western companies. A key factor of this competitive advantage is lower costs for raw materials and labor. At the same time, there is also a high demand for hydrogen in the domestic market. Furthermore, not long ago, HSBC Qianhai released the report \"China Green Hydrogen Ready for prime time.\" From the perspective of foreign research institutions, this report provides a detailed analysis of China’s green hydrogen market. The key points outlined include the fact that China’s electrolyzer installation capacity is set to reach 120 GW in the next 5 years, with the total market size reaching 396 billion yuan; moreover, a turning point upward for this market is expected to occur between 2024 and 2025. Foreign institutions and companies hold an optimistic and positive attitude toward the domestic electrolyzer market. However, the domestic market is not yet in a dominant position in the field of electrolyzer manufacturing. It is worth noting, though, that the domestic electrolyzer manufacturing industry is indeed developing at a rapid pace.
Last October, LONGi Hydrogen’s first alkaline water electrolyzer was officially produced. It is understood that this alkaline water electrolyzer features a high current density design, with a hydrogen production capacity of 1000 Nm3/h or more per unit; moreover, it adopts a configuration in which multiple large-scale electrolyzers are paired with a single gas-liquid separation system and gas purification system, thereby enhancing the efficiency of large-scale hydrogen production facilities. In April this year, Guofu Hydrogen Energy held an online ceremony to mark the completion of production of the first 1000 Nm3/h alkaline water electrolyzer. This product features three key advantages: it incorporates multiple technological innovations ； Production capacity advantages enable rapid bulk delivery ； Large-scale production brings significant cost advantages, which indicates that Guofu Hydrogen’s hydrogen production strategy has achieved partial success ； On the other hand, it has also accelerated the development of domestic alkaline water electrolysis hydrogen production technology, injecting new vitality into the alkaline water electrolysis industry. In April, Pray Hydrogen, a subsidiary of the 718th Research Institute of China State Shipbuilding Corporation, announced the signing of 7 new orders for international electrolytic water hydrogen production equipment, marking a surge in foreign orders. Among these, a supply contract was signed with an anonymous U.S.-based energy company for 5MW containerized hydrogen production equipment; this marked the first time that a 5MW containerized alkaline electrolysis solution (including the core electrolyzer stack and other components) was exported overseas, with the hydrogen produced being used for ammonia synthesis. Until then, the lack of brand awareness meant that most Chinese electrolyzer manufacturers sold their products only in the domestic market. At the beginning of May, the results of the bidding process for 13 hydrogen production systems used in Sinopec Xinxing’s green hydrogen demonstration project in Kuqa, Xinjiang, were made public. Three companies – Cowell Jingli (Suzhou) Hydrogen Energy Technology Co., Ltd., Xi’an Longi Hydrogen Energy Technology Co., Ltd., and the 718th Research Institute of China State Shipbuilding Corporation – succeeded in winning the bid. This project was launched at the end of last year; it is not only China’s first photovoltaic-based green hydrogen demonstration project on a scale of 10,000 tons per year, but it is also the largest such project under construction globally. It is expected to be completed and put into operation by June 2023, with an annual production capacity of 20,000 tons of green hydrogen. At the end of May, Junna Technology, an innovation-driven company that from its inception focused on developing core materials for electrolyzers, raised tens of millions in seed and angel funding, led by Lenovo Star. Meanwhile, several domestic venture capital firms are also in active discussions with Junna Technology. Currently, driven by both policy and market forces, the hydrogen energy industry is experiencing rapid development, which has spurred rapid growth in the hydrogen production sector; domestic equipment manufacturers are facing historic opportunities. According to available data, China’s installed capacity of electrolyzers is set to reach 120 GW in the next 5 years; by 2027, the total market size for electrolyzers will amount to 396 billion yuan. Of this amount, the cost of electrolyzer equipment will account for 50%, meaning the market size for electrolyzer equipment itself will be 198 billion yuan. “In the current climate of market enthusiasm, cool-headed reflection is essential. ”Industry experts warn that for the hydrogen production side, electrolyzers, as chemical processing equipment, operate in complex conditions involving fields such as electrochemistry, mechanics, and chemistry. Therefore, it is not sufficient to rely solely on increasing demand; rather, continuous efforts to advance technology are necessary in order to achieve significant technological progress in electrolyzer equipment.
By 2025, the domestic market demand for hydrogen production equipment using electrolysis will exceed 2 GW, representing a growth of more than 6 times compared to 2020.