China’s market for green hydrogen equipment (electrolyser) is estimated to be 50 billion yuan by 2028, that is expected to grow about 20 times in next five years due to the plunging costs of the clean energy source plunge, according to a CICC report.
The report revealed that this will be achieved when domestic demand for the equipment will reach 40 gigawatts and green hydrogen production is likely to top 4 million tons. It pointed out further that the new method of extracting hydrogen (zero emission fuel) from water using renewable energy zero-emissions fuel is gaining momentum that will cut down costs as compared to other conventional methods of using natural gas or coal. The new method will be on track as soon as the end of this decade, driving rapid deployments.
Dwelling on the cost factors, the reports says that the current production costs of green hydrogen is about 20 yuan ($2.90) a kilogram, compared to 10 yuan a kilogram using coal and 17 yuan a kilogram using natural gas. The factors that will make the new technology more competitive include-large-scale deployments, additional renewable energy capacity and rising carbon prices will all combine to make the newer technology competitive.
Moreover, as China aims to challenge US and European competitors to meet rising demand, the big players in this sector such as China National Petroleum Corporation are among those investing in the sector.
Another report expects the global shipments for electrolyser to get doubled or tripled in 2023 to as much as 3.3 gigawatts, with China potentially accounting for about 1 gigawatt.
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