"Hydrogen" takes the stage — Hydrogen Industry Observation | Cost Reduction and Efficiency Improvement: Green Hydrogen Production "Renewed Upgrade"

CNR Beijing, April 1st — (Reporter Lü Hongqiao) According to the Central Radio and Television Station’s Economic Voice “World Finance” report, due to tense geopolitical tensions, international oil prices have recently surged significantly, further highlighting the importance of new energy. Among them, hydrogen energy is highly anticipated because it can both absorb excess upstream green electricity and provide clean, efficient energy downstream. To develop hydrogen energy, technological equipment must come first. Currently, what is the status of research and application of equipment across various links in China’s hydrogen energy industry chain? The Economic Voice launches a series of reports titled “Hydrogen in Action — Observations on the Hydrogen Industry,” with the first installment on April 1st titled “Cost Reduction and Efficiency Improvement: Green Hydrogen Production ‘Renewal Upgrade’”.

Alkaline Electrolyzer (Photo by Lü Hongqiao,)

Zeng Guodong from the Hydrogen System Department of the Comprehensive Energy Division at CRRC Zhuzhou Institute introduced the core equipment for water electrolysis — the electrolyzer. Currently, the main types of electrolyzers are alkaline electrolyzers, PEM (Proton Exchange Membrane) electrolyzers, and anion exchange membrane electrolyzers. Among these, alkaline electrolyzers are advantageous due to their low cost, mature technology, and long lifespan, and they can be made very large, further reducing unit energy consumption, initial investment, and hydrogen production costs. Zeng Guodong said that in recent years, China has achieved significant results in scaling up alkaline electrolyzers, with the maximum hydrogen production capacity of a single cell increasing tenfold over five years.

Zeng Guodong stated, “Around 2021, the largest alkaline electrolyzers in the industry were probably 200 standard cubic meters or 500 standard cubic meters. Between 2022 and 2023, the development of alkaline electrolyzers has been particularly rapid, with models of 1000, 2000 standard cubic meters, and more recently, 3000, 4000, and 5000 standard cubic meters electrolyzers have been developed.”

Due to inherent performance limitations, alkaline electrolyzers require relatively stable power sources for hydrogen production. However, some new energy sources are variable—sometimes large, sometimes small, sometimes available, sometimes not—requiring electrolyzers to withstand such fluctuations and to start, stop, and adjust loads promptly. PEM electrolyzers can meet these requirements better, matching fluctuating power sources more effectively. In 2024, China achieved full-chain independent R&D of proton exchange membrane water electrolysis technology, reaching industry-leading levels and gaining market recognition.

Zhang Youjie, Sales Manager of the Marketing Department at Shanghai Hydrogen Era Technology Co., Ltd., said, “The main feature of proton exchange membrane electrolyzers is their very fast load response, reaching second-level response times, making them very suitable for matching the fluctuations of wind and solar power. We have signed the order for China’s largest single-cell 400 standard cubic meters, or two-megawatt, proton exchange membrane electrolyzer, which is currently under manufacturing and delivery.”

Anion Exchange Membrane Electrolyzer (Photo by Lü Hongqiao,)

The anion exchange membrane electrolyzer is one of the cutting-edge technologies for water electrolysis today. It responds faster than alkaline electrolyzers and costs less than PEM electrolyzers, making it regarded as the “solid-state battery” in the green hydrogen field. Zhang Youjie revealed that this technology is moving from laboratory research to demonstration applications.

Zhang Youjie said, “It combines the advantages of alkaline and PEM electrolyzers, allowing water electrolysis for hydrogen production without using expensive membranes and catalysts, instead employing more affordable, cost-effective membranes. We are conducting advanced technology R&D, and it can produce 100 standard cubic meters of hydrogen per hour as a demonstration. This year, we will verify and demonstrate it on-site.”

Containerized Water Electrolysis Hydrogen Production Equipment (Photo by Lü Hongqiao,)

According to the latest data from the Ministry of Industry and Information Technology, in recent years, China’s water electrolysis hydrogen production equipment has developed rapidly, with manufacturing capacity leading globally, accounting for nearly 60% of the world’s electrolyzer capacity. Against the backdrop of rapid capacity expansion, many companies have developed full-process hydrogen production system integration capabilities, leading to an upgrade of hydrogen production equipment. This containerized alkaline water electrolysis hydrogen production device integrates electrolyzer containers, pure water containers, separation and purification containers, and other equipment. Its transportation, installation, and deployment are flexible, saving land and shortening construction cycles.

Zou Jianhua, Vice President of Hopu Co., Ltd., said, “It is a complete device for a thousand-cubic-meter electrolyzer, capable of fulfilling the entire process from power supply to hydrogen production to separation and purification. It is not a core component but a complete product, achieving a hydrogen production capacity of 1,000 cubic meters per hour.”

By the end of last year, the total number of hydrogen-related patents filed in China had risen to 100k, ranking first globally. Among more than 50 key hydrogen energy technologies, 6 reached leading levels, 3 advanced from follow-up to parallel development, and a total of 5 batches and 27 sets of hydrogen energy core technologies and equipment had been formed. Overall, China’s hydrogen energy technological innovation capability has significantly improved, with notable breakthroughs in key technical levels.

Yu Zhuoping, Director of the China Hydrogen Alliance Expert Committee and Professor at Tongji University, said, “More critically, the core industry technology costs are also entering a rapid decline channel, with costs of alkaline electrolyzers and proton exchange membrane electrolyzers decreasing by over 30% and 60%, respectively.”