As the world moves towards carbon neutrality, hydrogen emerges as a focal point for future energy development. Electrolysis, the process behind green hydrogen production, stands as a crucial avenue in this endeavor, with related equipment presenting a prime opportunity for market entry. Notably, China, Germany, and Japan are aggressively positioning themselves at the forefront of the upstream hydrogen equipment market.
With nations worldwide expanding their hydrogen initiatives, demand for electrolyzers, essential for producing green hydrogen, is skyrocketing. According to the International Renewable Energy Agency (IRENA), electrolyzers, a key hardware component in the global hydrogen industry, exhibit immense growth potential, with the market projected to reach US$500-600 billion by 2050.
Among the frontrunners in hydrogen adoption, China's progress is particularly noteworthy. The International Energy Agency (IEA) reports that China's proactive deployment of electrolyzers is expected to result in a capacity of 1.2GW by the end of 2023, accounting for half of the global share.
Major suppliers in China, including Sungrow, Longi, and Peric Hydrogen Technologies, are ramping up their production capacities through 2025. Market estimates suggest a doubling of electrolyzer shipments in China between 2024 and 2025, with demand reaching 3GW and 6GW, respectively.
Currently, mainstream hydrogen production methods include Alkaline Electrolysis (AE), Polymer Electrolyte Membrane (PEM), Anion Exchange Membrane (AEM), and Solid Oxide Electrolysis Cell (SOEC). While AE is widely adopted, particularly in China, PEM finds application in specific sectors like renewable energy generation and automotive hydrogen. AEM and SOEC technologies are still in the nascent stages.
While hydrogen production isn't a primary focus, electrolysis remains an inevitable path toward green hydrogen for Taiwan. Taiwanese firms can leverage their expertise in electrolyzer components or system integration. Companies like Enapter from Germany have explored collaborations in Taiwan, partnering with research institutions like ITRI.
It is worth noting that among Taiwanese ventures is Blade Hydrogen Green Technology, a startup supported by ITRI, focusing on AEM electrolyzer technology. Similarly, Tripod Nano Technology, backed by PCB manufacturer Tripod International, is delving into seawater electrolysis for hydrogen production in collaboration with National Central University.
While Taiwanese firms predominantly concentrate on downstream hydrogen fuel cell components and applications, their advantage lies in system integration. As the future hinges on green hydrogen production from renewable sources, Taiwanese firms are gearing up for collaborations with Chinese counterparts, recognizing their critical role in achieving carbon neutrality.
