CHN Energy Investment Group (CHN Energy) announced the results of its bidding process for the 13,000Nm³/hr ALK electrolyzer system.
This equipment is integral to a 50,000-ton-per-annum green ammonia production project in Cangzhou, Hebei province. The bidding results have drawn significant attention due to the markedly lower prices offered by the preliminary winners, CRRC Zhuzhou Institute and Sungrow.
The preliminary winners, CRRC Zhuzhou Institute and Sungrow, offered prices for the ALK electrolyzer system that were at least 28% lower than the prevailing market rates in China for the first half of 2024. This substantial discount raises questions about the sustainability and implications of such pricing strategies.
Established in 1959, CRRC Zhuzhou Institute is a subsidiary of China Railway Rolling Stock Corporation, with a diverse portfolio spanning rail transit, new materials, and new energy equipment. The institute began producing ALK electrolyzers in 2022, with a current manufacturing capacity of 1GW per annum. Its entry into the electrolyzer market reflects a broader trend of traditional industrial companies expanding into renewable energy technologies.
Sungrow Power Supply Co., Ltd., known for its expertise in solar inverters, entered the electrolyzer market in 2019. Sungrow has developed both ALK and PEM electrolysis technologies, with a current production capacity of 3GW. The company’s established reputation in the inverter sector and its significant R&D investments position it as a major player in the electrolyzer market.
The pricing strategies of CRRC Zhuzhou Institute and Sungrow represent a significant deviation from prevailing market rates. The average price for ALK electrolyzers in China for the first half of 2024 reflects a high cost associated with advanced manufacturing and technology development.
