Chinese Electrolyzer Manufacturers Shrug Off New EU Restrictions
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
In August 2023, employees check the operation of electrolytic cell at a hydrogen production plant in the Xinjiang Uyghur autonomous region. Photo: VCG
The European Union has imposed fresh restrictions on China-made electrolyzers, barring funding for any future “green hydrogen” projects that are too reliant on Chinese suppliers. But the latter are not overly concerned by the looming restrictions, as technological differences and Europe’s strict standards on green hydrogen production have already been deterring Chinese imports.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- The EU is restricting funding for "green hydrogen" projects reliant on over 25% Chinese electrolyzers to reduce dependence on Chinese imports.
- The second renewable hydrogen auction will provide nearly 2 billion euros in funding, with contributions from Spain, Lithuania, and Austria.
- Chinese electrolyzer manufacturers face challenges entering the EU market due to different technology preferences and strict EU standards, but are investing in European facilities to bypass restrictions.
AI generated, for reference only
Who’s Who
- Jiangsu Guofu Hydrogen Energy Equipment Co. Ltd.
- Jiangsu Guofu Hydrogen Energy Equipment Co. Ltd. is a Chinese company involved in producing Proton Exchange Membrane (PEM) electrolyzers. It is noted that Chinese PEM electrolyzer production is lower in capacity and higher in cost compared to European counterparts, largely because the core materials are still primarily imported. This positions Jiangsu Guofu and similar companies at a disadvantage in the European market, which has strict requirements and a preference for PEM technology.
- Hygreen Energy
- Hygreen Energy produces both PEM and alkaline electrolyzers and plans to build a plant in Spain. This move is part of Chinese companies' increasing investment in European manufacturing to circumvent EU restrictions on project funding, aligning with the EU’s REPowerEU plan to reduce dependence on Russian fossil fuels and achieve 45% renewable energy consumption by 2030.
- Envision Group Inc.
- Envision Group Inc. is a company involved in hydrogen energy projects and has partnered with the Spanish government and local firms to establish a zero-carbon hydrogen industrial park. This initiative supports the EU's REPowerEU plan, aiming to reduce reliance on Russian fossil fuels and achieve 45% renewable energy consumption by 2030.
AI generated, for reference only
What Happened When
- Between September 2023 and August 2024：
- China secured the largest share of committed investments in electrolyzer projects.
- September 2024：
- The EU released a statement regarding the restrictions on Chinese components in electrolysis technology.
- October 2024：
- The International Energy Agency reported China's manufacturing capacity and investment in electrolyzer projects.
AI generated, for reference only
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新