Analysis of China’s green power hydrogen production technology trends

Main points of the report

➢ Policy:

The promulgation of the "Medium and Long-term Plan for the Development of Hydrogen Energy Industry (2021-2035)" emphasizes the core position of low-carbon green hydrogen sources in the fields of industry, transportation, power generation and energy storage. The clarification of quantitative goals requires governments at all levels to take active actions to achieve the set goals, which indicates that China's hydrogen energy industry will usher in a new period of accelerated development.

➢ Main advantages of China’s green hydrogen industrialization:

China has abundant renewable energy and installed capacity, providing superior conditions for the development of green hydrogen. Since the main cost of green hydrogen comes from green electricity, and the cost of green electricity in China is relatively low, green hydrogen is highly economical in China. Data from Dadong Times Think Tank (TD) shows that China’s green hydrogen cost is the lowest in the world, which provides strong support for the rapid development of China’s green hydrogen industry and the global clean energy transformation.

➢ ALK hydrogen production technology summary:

In China, ALK hydrogen production technology has become the leading technology for water electrolysis hydrogen production and is widely popular because of its low equipment price, mature technology and long life. However, ALK technology also has the disadvantages of low compatibility with renewable energy and a narrow workload range, which limits its application in certain scenarios. However, with the advancement of technology, it is believed that ALK hydrogen production will continue to be optimized to better meet the demand for renewable energy and contribute to the development of China's clean and low-carbon energy system.

➢ Summary of PEM hydrogen production technology:

In the field of PEM hydrogen production, China lags behind overseas. This is mainly reflected in the industrialization of proton exchange membranes and the deficiencies in the industrial chain of key materials such as titanium felt and titanium mesh, resulting in high prices for PEM equipment. However, China has made clear the direction of cost reduction and is expected to achieve large-scale promotion in 2026 to promote the development of clean energy.