China Dominates Global Green Hydrogen Market Through Electrolyser Production

China has become the world leader in green hydrogen, reaching an annual production of 36.5 million tonnes. It dominates nearly 85% of the global manufacturing capacity for Alkaline electrolysers. Electrolysers are essential for producing green hydrogen by splitting water using renewable energy. While China benefits from state subsidies and integrated supply chains, other countries are implementing strict regulations and local content requirements to challenge this dominance. The two main technologies are Alkaline (ALK) and Proton Exchange Membrane (PEM) electrolysers. China's dominance in ALK electrolysers is driven by lower costs compared to Western counterparts.

Key Points

  • China controls 85% of the global manufacturing capacity for Alkaline (ALK) electrolysers.
  • Green hydrogen is produced using renewable energy, making it a key tool for global decarbonization efforts.
  • PEM electrolysers are more efficient for fluctuating energy loads but are currently more expensive than ALK types.
  • Supply chain security and local competitiveness are leading many countries to scrutinize Chinese imports.

Exam Facts

  • 36.5 million tonnes annual production in China
  • 85% global capacity for Alkaline electrolysers
  • ALK and PEM technologies
  • 45% cost advantage for Chinese electrolysers

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All current affairs of 3 October 2025