China’s electrolyzer industry has entered a new phase of global expansion. Publicly available shipment data show Chinese manufacturers exported at least 321.25 MW of electrolyzers during the first half of 2026, compared with just 18.5 MW during the same period in 2025.
The more than 1,600 percent year over year increase extends across Europe, Asia, Africa, and North America, signaling that Chinese suppliers are evolving from domestic manufacturers into major participants in the global hydrogen equipment market.
The export growth is supported by an equally robust domestic market. During the first half of 2026, publicly disclosed bidding covered 46 hydrogen projects totaling 1,188.05 MW, while winning bids and direct contract awards reached 1,121.05 MW, representing a 35.74 percent increase from a year earlier. Alkaline electrolyzers accounted for 92.6 percent of awarded capacity, with proton exchange membrane systems representing 2.46 percent and anion exchange membrane technology accounting for 0.13 percent.
The technology mix reflects China’s competitive strategy. Rather than pursuing leadership across every electrolyzer segment, Chinese manufacturers have concentrated on alkaline systems, where mature supply chains, manufacturing scale, and lower production costs provide a significant commercial advantage. Although PEM technology remains attractive for applications requiring greater operational flexibility, alkaline systems continue to dominate large scale green hydrogen projects where capital expenditure remains the primary economic constraint.
The industry’s expansion is underpinned by an increasingly large domestic project pipeline. According to China’s National Energy Administration, renewable hydrogen production capacity under construction exceeded 1 million tonnes per year at the end of March 2026. More than 250,000 tonnes annually had already entered commercial operation, more than double the level recorded at the end of 2024, while more than 900,000 tonnes per year remained under development.
Chinese manufacturers are now supplying projects across nearly every major emerging hydrogen market. In the Middle East, Sungrow Hydrogen secured a contract with India’s ACME Group to supply multiple 1,000 Nm³ per hour alkaline electrolyzer units for a 320 MW green ammonia project in Oman. Shuangliang Energy Saving delivered 16 hydrogen production systems for ACME’s green ammonia development, while PowerChina Hydrogen reported international business accounting for as much as 60 percent of its project portfolio.
Europe has become an equally important destination despite ongoing efforts to establish domestic electrolyzer manufacturing. Trimogen Hydrogen announced cooperation covering 160 MW of projects in Spain, while LONGi Hydrogen signed a 1 GW original equipment manufacturing agreement with Norway’s HydrogenPro. Envision Energy has also supplied multiple megawatt scale PEM electrolyzers into European markets.
South Asia illustrates a different expansion model. Guofu Hydrogen signed a US$5.1 million contract with India’s Advait, while the companies’ joint venture has already produced its first 5 MW electrolyzer locally. Meanwhile, LONGi’s integrated hydrogen production system has entered operation in Uzbekistan as part of ACWA Power’s renewable hydrogen demonstration project, highlighting how Chinese manufacturers increasingly combine equipment exports with broader engineering partnerships.
The commercial expansion has been reinforced by domestic industrial policy. In May 2025, China’s National Development and Reform Commission and National Energy Administration introduced new rules allowing dedicated renewable electricity supply lines to hydrogen producers, reducing transmission costs and improving project economics in renewable rich regions. Additional support followed in March 2026, when multiple ministries launched hydrogen application pilots covering fuel cell vehicles, green ammonia, methanol, industrial feedstocks, hydrogen metallurgy, and hydrogen blending applications.
The policy framework became more ambitious in June 2026 with publication of the country’s Fifteenth Five Year Plan for building a new energy system. The strategy targets 2 million tonnes per year of renewable hydrogen production by 2030, roughly seven times operational capacity reported at the end of the first quarter of 2026. Such targets provide manufacturers with long term demand visibility while supporting continued investment in production capacity.
Investment research increasingly suggests the industry’s competitive dynamics are shifting from technology development toward manufacturing scale. Changjiang Securities argues that between 2026 and 2030, hydrogen competitiveness will increasingly depend on reducing costs through industrial scale production rather than incremental technological improvements. The firm estimates applications including hydrogen based steelmaking and green ammonia could become commercially attractive if green hydrogen production costs fall to approximately ¥8 to ¥10 per kilogram while carbon prices approach ¥100 per tonne.
Perhaps the clearest indication of China’s manufacturing advantage emerged not through export statistics but through a strategic decision by Norway’s HydrogenPro. In May 2026, the company announced it would suspend production at its own 500 MW Tianjin factory and instead manufacture electrolyzers through LONGi’s facilities under a 1 GW OEM agreement. HydrogenPro said the move would generate annual savings exceeding NOK 20 million, while continuing to integrate its proprietary technology and complete final assembly for European projects in Germany through engineering partner Andritz.
