Caught Napping? China’s PEM Push Gains Momentum as the West Stalls

Key Points

China’s significant global renewable power generation advantage, driven by solar energy, positions it strongly to compete in green product markets like hydrogen, where we think it will also lift its technological prowess.
Although China currently leads in alkaline electrolyzers, aggressive government policies and investments from state-owned enterprises signal a strategic pivot towards more efficient, scalable PEM electrolyzer technology.
A slowdown in Western green hydrogen ambitions and potential hurdles facing the scaling of PEM technology, ranging from potential raw material and offtake demand challenges, could allow China to gain market share.
China’s strategic partnerships, such as the Sungrow and Next Hydrogen alliance announced recently, highlight its leveraging of international collaborations to source and rapidly scale lower-cost electrolyzer technologies.
Otherwise, we provide our weekly spot ammonia and methanol market updates, highlight China (and Russia) Nuclear reactor technology leads, and flag several global renewable power and hydrogen developments.

Exhibit 1: China is a leader in renewable power generation; will its focus now shift to electrolyzer technology?