At present, most of the core products in the entire domestic hydrogen energy industry chain have been replaced by domestic products, and the "card neck" problem of hydrogen energy valves is still more prominent, and the market is still dominated by imported products.
Specifically, in the field of hydrogen refueling stations, the proportion of domestic hydrogen valves is less than 3%; in the field of vehicle-mounted hydrogen supply systems, the proportion of domestic hydrogen valves is high but only about 20%-30%; in the field of fuel cell systems, the proportion of domestic hydrogen valves is about 10%-20%.
This situation is the result of the superposition of multiple factors such as the leading performance of foreign hydrogen energy valve products and the early development of domestic industries/ insufficient product verification. However, in the context of hydrogen energy valves presenting a huge market cake, domestic hydrogen energy valve suppliers have also begun to exert efforts, and intend to give full play to the advantages of high cost performance, good service and short supply cycle to promote localization and substitution.
Hydrogen energy valve market real exploration: import-oriented
Hydrogen energy valves are mainly used in three types of scenarios: on-board storage & hydrogen supply systems, fuel cell power systems, and hydrogen storage, transportation and processing systems. The requirements of the three types of scenarios for valves are different, and the focus of valves is also quite different. At present, these three types of valves have a major common point in market application: mainly imported products, and the domestic production rate is not high.
According to the research of the Institute of Hydrogen and Electricity (GGII), in the field of hydrogen refueling stations, the proportion of domestic hydrogen energy valves is less than 3%, and the mainstream suppliers of major valve types such as globe valves, check valves, pressure reducing valves, exhaust valves, solenoid valves and other products are mainly imported brands, such as Magswirt, Swagelok, etc.
In the field of on-board hydrogen supply system, the proportion of domestic hydrogen energy valves is relatively high, about 20%-30%, because Guofu Hydrogen Energy and Shanghai Shunhua both use domestic valves, including simple valve products such as hydrogenation ports. However, the market as a whole is mainly occupied by companies such as Canadian GFI, Italian OMB and The United States Luxfer.
In the field of fuel cell systems, the proportion of domestic hydrogen energy valves is about 10%-20%. Some head fuel cell manufacturers have been mass-applied domestic products in the relatively low technical difficulties of hydrogen discharge valves and safety valves; but most small and medium-sized fuel cell system manufacturers still use imported products, especially solenoid valve products with high technical thresholds.
The current situation of localization rate of hydrogen energy valves in Different Fields in China
Source: Institute of Hydrogen and Electricity (GGII), March 2022
"At present, in the entire hydrogen energy industry chain, most of the core products have been replaced by localization, and the problem of the card neck of hydrogen energy valves is still relatively prominent." Foreign hydrogen valve brands have enjoyed the first wave of market dividends in the wave of hydrogen energy development in China. A supplier of on-board hydrogen energy valves said.
The reason why this situation occurs in the field of hydrogen energy valves is mainly in three aspects: First, the basic research of foreign enterprises is advanced, the research in terms of materials/processes/sealing theory is relatively leading, and the high-pressure hydrogen energy valves have been developed first, and the product technical indicators and performance are excellent; later, after a large number of trial and error, the product quality has been significantly improved. In contrast, there are fewer domestic enterprises engaged in the research and development and production of hydrogen energy valves, most of the existing products are not fully verified, and the reliability has not been guaranteed.
Second, from the user's point of view, the hydrogen medium is special (small molecules, easy to penetrate hydrogen embrittlement, explosiveness, etc.), and the quality requirements of the valve are very high. At present, the entire domestic industry is in the early stage of development, and most of the hydrogen valve users are in the stage of creating sample engineering. For the sake of prudence, users generally prefer to purchase foreign products with more guaranteed quality, rather than easily trying domestic brands, and "want to use but dare not use" for domestic brands.
Third, from the perspective of supply chain safety management, hydrogen valve users will favor brands that have a certain brand base and can meet their own large-scale procurement needs. Of course, the application of hydrogen energy valves by users is not very large, but the overall ability of domestic hydrogen energy valve companies to supply in batches is relatively weak, which limits the user's choice of domestic brands to a certain extent.
Domestic hydrogen energy valves set off a "breakthrough war": initial results
Under the double carbon target, the development of the hydrogen energy industry is in full swing. Hydrogen energy valves are being used in all aspects of the hydrogen energy industry chain and are also ushering in a period of rapid development.
Taking hydrogen energy valves for hydrogen refueling stations as an example, GGII data shows that the market size of hydrogen energy valves for domestic hydrogen refueling stations in 2021 is 126 million yuan. Benefiting from the rapid growth of the number of domestic hydrogen refueling stations, GGII predicts that this number will increase to about 160 million yuan in 2022, and is expected to reach 306 million yuan by 2025, with a compound growth rate of 24.1% from 2022 to 2025.
Scale and forecast of hydrogen energy valves for hydrogen refueling stations in China from 2020 to 2025 (unit: 100 million yuan)
Source: Institute of Hydrogen and Electricity (GGII), March 2022
From the perspective of the on-board hydrogen supply system, GGII shows that in 2021, the domestic market will ship 4129 sets of on-board hydrogen supply systems, an increase of 67.85% over the previous year; in 2022, this figure is expected to reach 11,000 sets, an increase of 171.3% over the previous year; in 2025, it is expected to reach 37,000 sets, and the compound annual growth rate from 2021 to 2025 is 73%. The sharp rise in shipments of on-board hydrogen supply systems will obviously also make the hydrogen valve market size in this field grow exponentially.
The huge "market cake" of hydrogen energy valves makes domestic valve suppliers "clap their hands". Although this field is currently dominated by imports, they have not given up the localization breakthrough. They continue to promote technological innovation to break the situation of being "stuck neck" by foreign products in the past, and at the same time intend to seize a part of the market from foreign brands through price advantages, service and supply cycle advantages.
Typical representative enterprises include: Shentong New Energy, Fu rui hydrogen energy, Han hydrogen power, Shanghai Shunhua, Weishi Energy, Hefei General Machinery Research Institute, Zhejiang Hongsheng, Xianchuang Fluid, etc.
The following is an overview of the layout of some of the above-mentioned enterprises in hydrogen energy valves, from which they can see their efforts to promote localization and substitution, and also show the overall technical level of domestic hydrogen energy valve companies:
Shentong New Energy
Founded by the technical team of Aerospace Science and Technology Group and Jiangsu Shentong Valve (002438), MiTAC New Energy specializes in the research, development, production and sales of precision valves. At present, the company has completed the closed loop of valve products for 70&35MPa vehicle-mounted hydrogen system, and has completed the construction of the production line with an annual production capacity of 50,000 valves.
At present, it has provided the market with thousands of multi-bottle group hydrogen system valves, more than 100 sets of single-bottle group hydrogen system valves, more than 100 sets of unmanned aerial vehicle bottle mouth valves, more than 10 sets of forklift hydrogen system valves, and has successfully provided users with military fuel cell valves and laboratory valves.
Jefferies valves
Jefferies Valve, a holding subsidiary of Zhangjiagang Jefferies Special Equipment Co., Ltd., began to independently develop a series of high-pressure hydrogen valves such as on-board hydrogen supply systems, hydrogen refueling machines and hydrogen refueling stations in 2016. Up to now, Jefferies Valve has completed the development of 35MPa vehicle hydrogen integrated bottle valve, hydrogenation port, straight-through check valve, regulator valve, overcurrent valve, filter, safety valve, needle valve, ball valve, proportional unloading valve, and developed 70MPa series hydrogen valve samples. In 2021, the sales volume of Jefferies valves in hydrogen energy valves reached more than 10,000 pieces, accounting for 10% of the company's total revenue. At present, Jefferies Valve's hydrogen energy valve products have been widely used in a variety of vehicles.
Han hydrogen power
Han Hydrogen Power was founded in April 2016 by senior experts in the field of aerospace power. At present, the company's core products are mainly on-board hydrogen supply system supporting valves (hydrogenation port, pressure reducing valve, bottle mouth valve) and UAV combination valve and other extension products. The safe operating mileage of vehicles equipped with the company's valve products has exceeded 30,000 kilometers; in 2021, the company's on-board supply system valves have been loaded with 385 vehicles; the company's cooperative customers include Shiyan Dongjun, Nantong CIMC, Zhejiang Lanneng, etc. In terms of drone combination valves, it has occupied 90% of the market share.
In 2021, the company's hydrogen energy valves in the company's total revenue business accounted for 30-40%, with the domestic hydrogen energy wave gradually rising, Han Hydrogen Power said it will invest more resources in hydrogen valves, including the launch of new products, its goal in 2022 is to increase the proportion of business to 50%.
Shanghai Shunhua
Founded in 2004, Shanghai Shunhua has been deeply engaged in the field of hydrogen energy technology for 18 years, and is a high-tech enterprise specializing in the research and development and promotion of hydrogen energy and distributed energy technology. In the field of hydrogen energy valves, Shanghai Shunhua has also launched an in-depth layout. Last year, its 35MPa vehicle-mounted hydrogen cylinder valve and tail valve successfully passed the type test of Dalian Boiler Pressure Vessel Inspection and Inspection Institute, and obtained the "Special Equipment Type Test Certificate". Shanghai Shunhua is also the first independent brand to receive this type of test.
In the same year, Shanghai Shunhua independently developed a combination valve for automotive hydrogen cylinders (model: QKF-A) officially passed the EC79/EU406 certification of the German Ministry of Transport (KBA) and obtained the type approval certificate. It is also the world's first hydrogen cylinder combination valve certified by the German Ministry of Transport (KBA).
Untax energy
Based on its hydrogen safety management strategy and coaxial multi-level pressure reduction technology, Great Wall Motor has successfully launched the first "Rock Bamboo" series - 70MPa multi-functional integrated pressure reducing valve group products that have obtained third-party authoritative certification in China, overcoming the problems of efficient hydrogen storage, high reliability and high safety, and filling another key technical gap in the field of high-pressure valves for independent enterprises.
The product has officially passed the authoritative certification of "National Mechanical Power Product Quality Supervision and Inspection Center (Shanghai)", and has the ability to support fuel cell vehicles on a large scale, and plans to put it on the market on a large scale in the first half of 2022.
Hefei General Machinery Research Institute
Hefei General Machinery Research Institute of Sinomach Group is one of the earliest units in China to plan the research and development layout of key technologies for hydrogen energy utilization, and has built the first set of high-pressure hydrogen energy utilization equipment hydrogen cycle fatigue test system in China, with international leading technical indicators, providing important support for the quality improvement and safety supervision of hydrogen energy utilization equipment. In terms of hydrogen energy valves, it has made positive progress in the research and development of core equipment and key basic components such as 70MPa vehicle-mounted IV high-pressure hydrogen storage cylinders and bottle mouth combination valves, 90MPa hydrogen refueling station hydrogen compressors and high-pressure hydrogen valves.