Why in News: China has emerged as the world leader in electrolyser manufacturing and green hydrogen production, raising concerns over its growing dominance in the clean energy supply chain.
Why Green Hydrogen is Rising
- Crucial for hard-to-abate sectors like oil refining, steel, ammonia, methanol.
- Electrolysers at the core – like PV modules in solar.
- Falling costs, higher efficiency, modular systems → faster adoption.
- Strong policy backing: EU Green Deal, India’s National Hydrogen Mission, US Inflation Reduction Act.
Electrolysers in Commercial Use
Alkaline (ALK):
- Mature, lower cost, uses nickel & steel (abundant in China).
- Less efficient at variable renewable loads.
- Proton Exchange Membrane (PEM):
- Higher efficiency, high-purity output.
- Dependent on scarce metals (iridium, platinum, titanium), limiting scalability.
China’s Strategy and Advantages
- World’s largest hydrogen producer (36.5 MT; 1,20,000 tonnes green hydrogen in 2024).
- Controls 85% of global ALK electrolyser manufacturing.
- Cost advantage: ALK electrolysers ~45% cheaper for European projects.
- Integrated supply chains, abundant steel & nickel.
- Firms like LONGi, Envision, Guofu Hydrogen diversifying into electrolyser + hydrogen plant construction abroad.
Challenges in Replicating Solar PV Success
- Materials bottleneck: China imports critical metals for PEM; unlike solar where it controlled raw materials.
- System integration need: Hydrogen plants vary by application (transport, fertiliser, steel) → cannot compete only on low cost.
- Global competition & policy protection: EU, US, India prioritise domestic hydrogen industry.
- Trade barriers & security concerns: Supply chain resilience now central to clean energy policies.
Conclusion
China has built dominance in ALK electrolysers, but unlike solar PV, hydrogen technology demands complex integration, scarce imports, and faces geopolitical barriers. The green hydrogen market will likely be multipolar, not China-centric.
UPSC Relevance
GS Paper 3 (Economy, Energy, Environment)
- Role of green hydrogen in India’s energy transition.
Mains Practice Question
Q. “China could dominate electrolyser manufacturing as it did in solar PV, but replicating its solar success in green hydrogen will face greater hurdles.” Critically examine in light of global supply chain security and India’s hydrogen mission.