China’s Dominance in Low-Carbon Hydrogen Production

September 23, 2023

A recent report from the International Energy Agency (IEA) reveals that by the end of 2023, China is poised to exert significant control over the global installed capacity of electrolysers dedicated to low-carbon hydrogen production. This remarkable development comes despite a slowdown in new projects due to inflationary pressures.

China Takes the Lead in Electrolyser Deployment

China has made impressive strides in the deployment of electrolysers, signaling a notable shift in the global landscape. The IEA’s report on hydrogen highlights China’s emergence as a frontrunner in the field.

In 2020, China accounted for a mere 10 percent of the world’s electrolyser capacity. However, by the end of 2023, it is projected to control a staggering 50 percent, equivalent to 1.2 gigawatts, of the global capacity.

The Role of Electrolysers in Green Energy Transition

Electrolysers are critical devices in the green energy transition. They facilitate the industrial separation of hydrogen and oxygen within water molecules, powered by electricity derived from renewable sources such as solar, wind, or nuclear energy.

These devices are indispensable in replacing conventional methods of industrial hydrogen production, which rely on methane gas—a process linked to the petrochemical industry and associated with both cost-efficiency and greenhouse gas emissions.

Low-Carbon Hydrogen Production Potential

The IEA envisions the production of low-carbon hydrogen reaching 38 million tonnes by 2030, provided that all announced projects are successfully executed. This optimistic outlook aligns with the global shift towards cleaner energy sources.

Challenges on the Horizon

Despite the promising growth in low-carbon hydrogen production, the IEA underscores some challenges. Rising equipment costs due to inflation have placed certain projects at risk and have diminished the impact of government support for deployment.

Several projects have had to revise their initial cost estimates upward, by as much as 50 percent, according to the IEA.

Additionally, the slow transition from traditionally produced grey hydrogen to green hydrogen remains a concern on a global scale. Low-emission hydrogen constituted less than one percent of global demand in 2022, contributing to 900 million tonnes of equivalent carbon dioxide emissions.

A Call for International Cooperation

The IEA advocates for greater international collaboration to prevent market fragmentation and promote the broader adoption of low-carbon hydrogen. While progress has been made, the utilization of low-emission hydrogen still falls short of the levels required to meet climate goals, underscoring the need for continued efforts in this crucial area of sustainable energy production.

« Previous Post Next Post »