In a strategic move to tap into the booming hydrogen market in China, German-Italian electrolyser manufacturer Enapter has inked a significant framework supply contract valued at over $6.5 million with China’s renowned engine and drive company, Wolong.
This collaboration holds the promise of accelerating the adoption of modular hydrogen solutions across China, aligning with the global surge of interest in hydrogen electrolysers.
The landmark deal, finalized on August 7th, encompasses the delivery of cutting-edge five-megawatt multi-core systems for diverse clients in China. Additionally, Enapter will provide approximately 130 compact single-core electrolysers, specifically the AEM Electrolyser EL 4.0 model. This collaboration marks a crucial step for Enapter’s expansion into China, a move intended to bolster the competitiveness of modular hydrogen solutions within the country’s dynamic market.
Chairman of Wolong Electric Drive Group, Douglas Pang, expressed the seamless alignment of their respective visions, emphasizing Enapter’s aspiration to lead the global domain of AEM Electrolysers. Wolong is keen to play a pivotal role in materializing this vision on Chinese soil, contributing to the burgeoning hydrogen sector on both local and international fronts.
Enapter’s anion exchange membrane electrolyser, known as AEM Electrolyser EL 4.0, presents a standardized, stackable, and adaptable system for on-site hydrogen production. The modular architecture empowers operators to stack the electrolysers to achieve the desired hydrogen flowrate, catering to varying requirements.
China has rapidly established itself as a global leader in electrolyser manufacturing. With a cumulative electrolyser capacity of nearly 220 megawatts in 2022 and a staggering 750 megawatts under construction, slated to be operational this year, China commands 40% of the global electrolyser capacity. Remarkably, this capacity is projected to surge about 20-fold by 2028, driven by plummeting green energy costs.
Aligned with its Green Hydrogen Energy Plan, China has set ambitious targets, envisioning an annual production of 200,000 tonnes of green hydrogen by 2025. The government is fervently pursuing an electrolyser capacity target of 80 gigawatts by 2030. To accelerate adoption, the government has outlined two pivotal production price milestones: $4 per kilogram by 2025 and an even more competitive $2.4 per kilogram by 2030. Notably, this places green hydrogen costs on a collision course with the currently dominant grey hydrogen, which is priced significantly higher.
Beyond industry, China is propelling the hydrogen-fueled transportation sector. Ambitious plans encompass deploying 50,000 hydrogen-fueled vehicles on Chinese roads by 2025. This surge is anticipated to culminate in a substantial reduction of 1-2 million tonnes of carbon dioxide emissions annually.
