Chinese electrolysers11 Feb 2022 09:47
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An alkaline hydrogen electrolyser manufactured by Chinese OEM Longi, which plans to export its machines to the US and Europe.Photo: Longi
Will US and European green hydrogen markets soon be flooded by cheap Chinese electrolysers?
OEMs in China have begun exporting electrolysis systems that are four times cheaper than Western-made equivalents, says BNEF
9 February 2022 16:23 GMT UPDATED 9 February 2022 16:23 GMT
By Leigh Collins
Chinese electrolyser manufacturers have begun exporting systems to the US and Europe that are four times cheaper than Western equivalents, according to a new report by analyst BloombergNEF (BNEF).
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Similar price discrepancies in the solar industry in the 2010s saw the previously world-leading European solar manufacturing sector collapse in the space of a few years as cheaper Chinese modules flooded the market.
According to BNEF's new report, 1H 2022 Hydrogen Market Outlook, Chinese alkaline electrolyser systems cost $300 per kW in 2021, compared to $1,200/kW for Western equivalents, with proton exchange membrane (PEM) electrolysers even more expensive, at $1,400/kW (see panel below).
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However, that price gap will slightly shrink slightly this year, with improved automation and economies of scale at Western factories driving down alkaline electrolyser costs by 17% to $1,000/kW, with PEM systems falling 14% to $1,200/kW. By comparison, Chinese alkaline electrolysis set-ups will fall by just 10% to $270/kW.