As the world looks to decarbonize industries and achieve net-zero targets, green hydrogen emerges as a critical player. Among global leaders, China has positioned itself as a powerhouse, leveraging its renewable energy resources, advanced manufacturing capabilities, and cost advantages.

The Foundation of Success

China’s dominance in green hydrogen stems from its ability to master four key pillars of competitiveness:

1. Abundant Renewable Energy: With 301 GW of renewable capacity added in 2023, China has a strong foundation for green hydrogen production
2. Efficient Manufacturing: Electrolysers made in China cost as low as $343/kW, far below the $1,200/kW in Western markets. Key projects like the Energy China tender highlight costs as low as $219/kW
3. Infrastructure: A mature electricity ecosystem enables efficient integration of renewable energy into hydrogen production
4. Scalability and Cost: Vertical integration and economies of scale have allowed China to rapidly deploy projects and cut costs, making green hydrogen more accessible

Global Impact

China’s advancements have far-reaching implications:

• Cost Leadership: By offering electrolysers such as PEM electrolyser, Hydrogen electrolysers at significantly lower costs, China challenges Western manufacturers and reshapes global pricing dynamics
• Domestic Progress: With over 1 GW of electrolysis capacity installed and plans for 2.5 GW by 2024, China leads in scaling up hydrogen projects
• Threat to Competitors: Western nations risk losing their hydrogen industries, similar to the collapse of the European solar sector due to cheaper Chinese imports

The Road Ahead

While China’s rapid progress is commendable, it also serves as a wake-up call for other nations. To compete, countries must:

1. Innovate to lower production costs
2. Streamline regulations to accelerate project deployment
3. Foster international collaboration on technology and standards

China’s green hydrogen projects revolution is transforming the global energy landscape. As other nations strive to catch up, China’s cost-effective strategies and rapid deployment serve as both inspiration and competition. The race for green hydrogen dominance is heating up—and the stakes have never been higher.