Hydrogen Economy Update

Enthusiasm Wanes As Cost Rise – China (and India) Likely Win
September 12, 2023

C-MACC Hydrogen Weekly Update 11

Enthusiasm Wanes As Cost Rise – China (and India) Likely Win

  • Weekly Theme: The Hydrogen Panel Preview
  • News Update
  • Projects Update
  • Ammonia/Methanol Update
  • Power Update
  • Next Week: Feedback

Key Points

  • The slowdown in hydrogen activity in the West is apparent in Exhibit 1 and apparent in the lack of new projects that we track weekly. Escalating costs suggest that incentives may be inadequate.
  • China became the market leader in solar modules and batteries because relative speed to the market drove scale efficiency on top of other cost advantages. This will happen with electrolyzers.
  • Local demand for electrolyzers is high in China and any foreign investors outside of the US and Europe will have no qualms about buying equipment from China – a couple of projects below could benefit.
  • As costs escalate in the US and Europe, we are making it very challenging to set up real competition with Chinese manufacturers, and delays to US and European projects just give China more experience.
  • There is potential for India to become a low-cost equipment provider and given better relationships between the West and India, this could provide challenges for US and European equipment makers.

Upcoming session led by C-MACC at the World Chemical Forum – September 12-14.

We invite you to register for the event and join our hydrogen panel session “The Role of Hydrogen in Decarbonizing Chemicals” on September 14th at 3:00 pm. Please contact Graham Copley to learn more.

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