The Hydrogen Stream: China not to dominate the electrolyzer supply chains, says Oies

The Oxford Institute for Energy Studies (OIES) says China’s efforts to cut electrolyzer costs could follow its success in solar, but will not guarantee dominance in global supply chains.

The Oxford Institute for Energy Studies (OIES) said that while China’s push to lower electrolyzer costs could follow its success in solar, it will not necessarily secure dominance in global supply chains. Expanding manufacturing capacity alone will not drive major cost reductions or global market leadership, said the institute. OIES noted that the complexity of electrolysis systems prevents cost declines from relying solely on scaling up production, as green hydrogen costs also depend on electricity prices. It added that this complexity limits technology transfer in proton exchange membrane (PEM) electrolyzers. While manufacturing innovation and government support have helped China cut costs for alkaline electrolyzers and compete in the PEM segment, OIES argued that rising trade protectionism is further restricting its role in global electrolysis markets.

Toyota has developed a new fuel cell system, its third-generation fuel cell system, designed to have the same durability as conventional diesel-powered engines. “In addition to passenger vehicles, the 3rd Gen FC System will be expanded for use in heavy-duty commercial vehicles, and is planned for introduction in markets mainly in Japan, Europe, North America, and China after 2026 at the earliest,” said the Japanese manufacturer. It claimed that the new system will allow for a 120% improvement in fuel efficiency with respect to the prior generation, and 20% more cruising range.

The PtX Development Fund has approved its second grant, awarding HydroJeel a €30 million ($31.5 million) non-refundable grant for a project in Morocco’s coastal regions. The German fund, which supports hydrogen projects in developing and emerging economies, said HydroJeel developed the Jorf Hydrogen Platform for the OCP Group and plans to produce 100,000 tons of green ammonia per year at its Jorf Industrial Park facility by the end of 2026. HydroJeel operates as an Innovx business. The fund, launched by the German Ministry of Economic Cooperation and Development, added that its second call for expressions of interest, opened in January, will close on March 5, 2025.

Enertrag has launched a public auction for 500 tons of green hydrogen per year as it builds an electrolyzer plant in Osterweddingen, near Magdeburg, Germany. The developer said the 10 MW facility will produce about 900 tons of green hydrogen per year when it begins operations by the end of 2025. Enertrag is also constructing two additional hydrogen plants in Brandenburg and Mecklenburg-Western Pomerania with a combined 185 MW of electrolysis capacity. The company said it expects these facilities to generate up to 17,000 tons of hydrogen annually starting in 2028.