(Yicai) April 16 — Chinese hydrogen companies have entered into a number of deals recently with overseas clients to supply hydrogen energy solutions and equipment, as they expand their presence across Southeast Asia, Africa, the Middle East and Central Asia to support global efforts to cut carbon emissions and improve energy security.
Hydrexia Holding will provide magnesium-based solid-state hydrogen storage tanks and hydrogen refueling station equipment to Vietnamese environmental solutions firm KPT Chemical, according to the deal signed by the two parties on April 14. The hydrogen will come from a production plant in Kuching, Malaysia, which is jointly operated by Hydrexia and Malaysia’s SEDC Energy, and transported across borders using magnesium-based solid-state hydrogen storage technology.
Thiko Energy Group is linking arms with Russia’s Ministry of Industry and Trade to build a China-Russia cross-border hydrogen corridor which will deploy hydrogen-powered heavy-duty trucks on transport routes linking the two nations, according to the memorandum of understanding inked by the two sides on April 12.
Jiangsu Guofu Hydrogen Energy Equipment penned a USD6.2 million deal with its affiliate GF Hydrogen Africa Sarl on April 6 to supply a 20 megawatt hydrogen production system to Morocco.
And in March, Jiangsu Shuangliang Hydrogen Energy Technology shipped 16 sets of alkaline water electrolysis systems to Oman for a national green ammonia project run by the ACME Group.
“Looking at the whole supply chain, exports of electrolyzers are expected to grow quickly this year, particularly to the Middle East and Europe,” said Chen Yue, a representative from a hydrogen equipment manufacturer.
“Large-scale green hydrogen projects in areas like the Middle East are still driving demand. Furthermore, compared to the cost of individual machines, project developers are more concerned about the total operational cost over the project’s lifetime, which plays to the strengths of Chinese manufacturers.”
The Middle East and North Africa are planning to achieve a green hydrogen production capacity of 7.8 million tons by 2030, according to data from China Securities. This would require around 78 gigawatts of electrolyzers but as of early last year, only about 3 GW to 4 GW had been completed, leaving a huge gap.
Energy security is another big factor behind the demand. The conflict in the Middle East has pushed up oil and gas prices, which in turn affects downstream products such as urea and fertilizers, Chen said. Liquid ammonia, which is a key raw material in the production of urea, is usually made from natural gas. But switching to hydrogen produced via electrolysis could reduce reliance on gas and create more opportunities for Chinese electrolyzer equipment exporters. Recently, there have been several inquiries from European clients.
In January, China’s National Energy Administration said it plans to step up support for the hydrogen industry and cultivate future industries related to hydrogen energy during the 15th Five-Year Plan period, which runs until 2030. The goal is to bring the average end-user price of hydrogen down to below CNY25 (USD3.60) per kilogram by then.
Editor: Kim Taylor
