China dominates global low-carbon hydrogen production, IEA Report

  • Industry News
  • Oct 04,23
China's installed electrolyser capacity has surged in recent years, reaching 1.2 gigawatts, which accounts for a staggering 50% of the world's total capacity.
China dominates global low-carbon hydrogen production, IEA Report

According to a recent report from the International Energy Agency (IEA), China is set to dominate the global landscape of electrolyser technology for producing low-carbon hydrogen by the end of 2023. The report highlighted China's remarkable progress in electrolyser deployment, marking a significant shift in the global energy landscape.

China's installed electrolyser capacity has surged in recent years, reaching 1.2 gigawatts, which accounts for a staggering 50% of the world's total capacity. This is a remarkable increase from its 10% share in 2020. Electrolysers, essential devices in the industrial separation of hydrogen and oxygen within water molecules, rely on electricity generated from renewable sources such as solar, wind, or nuclear power. As the world transitions to green energy, these devices are crucial for replacing traditional methods of industrial hydrogen production, which involve the use of polluting methane gas and are linked to the petrochemical industry. Although these traditional methods are inexpensive, they contribute to greenhouse gas emissions.

The IEA report also emphasised the urgent need for low-carbon hydrogen production. It estimated that the production of low-carbon hydrogen could reach 38 million tonnes by 2030 if all announced projects are successfully implemented. However, the agency expressed concerns about the impact of inflation on project costs, with several initiatives revising their initial estimates upwards by as much as 50%. Rising equipment costs are jeopardizing projects and undermining the effectiveness of government support for deployment.

Furthermore, the report highlighted the slow global transition from traditionally produced grey hydrogen to green hydrogen, which is environmentally friendly. In 2022, low-emission hydrogen accounted for less than one% of the world's demand, resulting in 900 million tonnes of equivalent carbon dioxide emissions. The IEA stressed that current usage of low-emission hydrogen falls far short of the necessary levels to meet climate goals. To address this issue, the report called for increased international cooperation to prevent market fragmentation and facilitate a more substantial shift towards low-carbon hydrogen usage on a global scale.

Source: Indiatimes


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