Summary: As of January 2024, the total installed capacity of hydrogen production in domestic water electrolysis demonstration projects under construction and planning exceeds 41GW, and from the perspective of power sources, 98% are renewable energy hydrogen production projects, and the investment and construction of green hydrogen projects has shown an explosive growth trend. Driven by the construction of green hydrogen projects, the demand for hydrogen production equipment from water electrolysis has soared. In 2023, the shipment of hydrogen electrolyzers in mainland China will reach 1.2GW, with a year-on-year growth rate of about 50%, a large increase.
Keywords: hydrogen production electrolyzer, alkaline electrolyzer, PEM electrolyzer, hydrogen production electrolyzer development trend
1. Overview of the hydrogen electrolyzer industry
A hydrogen electrolyzer is a device that uses electrolysis to produce hydrogen, usually consisting of an electrolyzer and electrodes covered by a catalyst to help facilitate the breakdown of water. In an electrolyzer, water is broken down into hydrogen and oxygen, which are usually collected separately at different ports of the electrolyzer. The electrolyzer is the core equipment for hydrogen production by electrolysis of water, and it is also the main place where the electrolysis reaction takes place. Electrolytic cells are often composed of several electrolytic cells, each of which in turn consists of an electrode, a separator, and an electrolyte. According to the classification of water electrolysis hydrogen production technology, hydrogen production electrolyzers can also be divided into four categories: alkaline electrolyzers, proton exchange membrane electrolyzers, high-temperature solid oxide electrolyzers, and solid polymer anion exchange membrane electrolyzers. At present, alkaline electrolyzers have been commercialized, proton exchange membrane electrolyzers have also entered the early stage of commercialization, while high-temperature solid oxide electrolyzers and solid polymer anion exchange membrane electrolyzers are still in the R&D demonstration stage.
The alkaline electrolyzer is currently the most mature hydrogen production electrolyzer and has been widely used commercially, but there are certain environmental risks due to the fact that the electrolyte separator of the alkaline electrolyzer is mainly asbestos cloth. In recent years, with the continuous breakthrough of technology, proton exchange membrane electrolyzers have also entered the early stage of commercialization. The proton exchange membrane electrolyzer is not only safe and pollution-free, but also well adapted to fluctuating power supplies. With the continuous expansion of new energy power generation such as wind power and photovoltaic power, the application market of proton exchange electrolyzers is broad. In addition, as the technology continues to mature, the cost of proton exchange membrane electrolyzers will gradually decline, driving the expansion of its market application range.
2. Analysis of the industrial chain of hydrogen electrolyzers
The upstream of the hydrogen electrolyzer industry chain mainly includes raw materials such as bipolar plates, gas diffusion layers, catalysts, and separators. A bipolar plate is an electronic device that conducts electric current, distributes reaction gases, and carries away the resulting water. Bipolar plates are the most repetitive components in electrolyzers, and the development trend is to reduce the efficiency and cost of hydrogen electrolyzers, and the use of cheap alternative materials is the development trend. The electrode is the basis of the electrochemical reaction and has the ability of electroconversion, while the catalytic electrode is the accelerator of the electrochemical reaction, which has the function of accelerating the reaction rate and improving the reaction efficiency. At present, precious metal catalysts such as platinum are the main bottleneck for the expansion of proton exchange membrane electrolyzers. The gas diffusion layer is located between the catalytic electrode and the bipolar plate, and its primary role is to provide a path for the hydrogen-oxygen reaction gas to reach the catalytic electrode and an excretion path for the generated water. The gas diffusion layer also enables the electrical connection of the catalytic electrode to the bipolar plate and helps dissipate some of the heat. In the hydrogen electrolyzer, the separator mainly plays the role of separating gas, and its performance has a great impact on the purity of hydrogen preparation and the energy consumption of the electrolyzer.
An electrolysis system is mainly composed of an electrolyzer and an auxiliary system (BOP). The electrolyzer is the core device for hydrogen production by electrolysis reaction, and the auxiliary system is used for the treatment of raw materials, system circulation and drying and purification of hydrogen products, mainly including power supply system, hydrogen drying and purification system, deionized water system and cooling system. After the electrolysis hydrogen production system produces hydrogen, it is mainly used in hydrogen refueling stations, hydrogen storage tanks, hydrogen fuel cells and other fields.
3. Development status of hydrogen electrolyzers in China
Hydrogen energy has been continuously valued by its advantages of clean, environmental protection and high calorific value, and various countries have introduced relevant policies to plan the strategic development route of hydrogen energy, and the hydrogen energy market at home and abroad continues to be hot. As of January 2024, the total installed capacity of hydrogen production in China's public water electrolysis demonstration projects has exceeded 41GW, and 98% of them are renewable energy hydrogen production projects from the perspective of power sources, and the investment and construction of green hydrogen projects have shown an explosive growth trend. Driven by the construction of green hydrogen projects, the demand for hydrogen production equipment from water electrolysis has soared. In 2023, the shipment of hydrogen electrolyzers in mainland China will reach 1.2GW, with a year-on-year growth rate of about 50%, a large increase. Among them, Perry Hydrogen Energy ranked first in terms of shipments, LONGi Hydrogen Energy ranked second, and Huadian Heavy Industry and Aerospace Sizhuo entered the top five for the first time. The total market share of the top 5 manufacturers is 54%, a significant decrease of 25% year-on-year in 2022, and the market concentration has decreased significantly as many new players achieve equipment delivery.
At present, the green hydrogen industry in mainland China is still in the early stage of development, and there is a lot of room for improvement in the development of water electrolysis hydrogen production technology and the economy of green hydrogen projects, and the development prospects of the industry are generally optimistic. With the continuous implementation of green hydrogen projects, domestic electrolyzer shipments are expected to grow to more than 2GW in 2024.
Note: This article is excerpted from the industry analysis article "Development Status of Global and Chinese Hydrogen Production Electrolyzer Industry in 2024: Green Hydrogen Project Construction is Hot, Hydrogen Production Electrolyzer Market Development Potential is Huge [Figure]" released by Zhiyan Consulting.
The "2024 Analysis of the Current Situation and Future Development Trend Forecast Report of China's Hydrogen Production Electrolyzer Industry" released by Zhiyan Consulting is based on the authoritative data released by the National Bureau of Statistics, government agencies, and industry associations, combined with the collection and analysis of in-depth research data, expert feedback data, internal operation data and other global data to improve the efficiency of customers' business decision-making. This report makes an in-depth investigation and research on the current situation and market of China's hydrogen electrolyzer industry, and makes a prudent judgment on the future development prospects and trends according to the development trajectory of the industry, which provides a crucial decision-making reference for investors to find new market investment opportunities and enter the investment layout of the hydrogen electrolyzer industry.
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