Auction results reveal that Chinese hydrogen electrolysers are two to five times cheaper to buy than Western machines
State-owned China Energy Engineering Corporation publishes details of winning bids at ‘centralised procurement’ tender
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Manufacturer | Type | Price ($) |
Sungrow Hydrogen | ALK (5MW) | 961,504 |
Wuxi Huaguang | ALK (5MW) | 992,758 |
Guangdong Shengqing | ALK (5MW) | 994,830 |
Trina Solar Hydrogen | ALK (5MW) | 1,004,681 |
Beijing Power Equipment Group | ALK (5MW) | 1,041,786 |
Tianjin Mainland Hydrogen | ALK (5MW) | 1,053,900 |
Shanghai Electric | ALK (5MW) | 1,072,423 |
Cockerill Jingli Hydrogen | ALK (5MW) | 1,081,812 |
Shuangliang Group | ALK (5MW) | 1,090,042 |
Peric | ALK (5MW) | 1,100,000 |
Longi Hydrogen | ALK (5MW) | 1,112,256 |
Shanghai Electric | PEM (1MW) | 484,680 |
Sungrow Hydrogen | PEM (1MW) | 567,209 |
BriHyNergy | PEM (1MW) | 626,741 |
SPIC Hydrogen | PEM (1MW) | 728,858 |
Cummins Enze | PEM (1MW) | 750,418 |
Energy China — which has begun construction of what will be the world’s largest green hydrogen project, using 640MW of electrolysers — said: “This bidding is for the procurement of hydrogen production equipment required for projects invested [in] or constructed by enterprises affiliated to the joint-stock company from December 2023 to November 2024. The total estimated quantity is 125 sets.”
The original tender notice for “Energy China's 2023 Hydrogen Production Equipment Centralised Procurement” states that the electrolysers would be used at projects that will be “mainly distributed at various construction sites in China”.
All the winning manufacturers are based in China and owned by Chinese companies, with the exception of Cockerill Jingli, which is 100%-owned by Belgium’s John Cockerill, and Cummins Enze, which is a 50/50 joint venture between US-based Cummins and Chinese oil giant Sinopec.
How do the prices compare with Western electrolysers?
Understandably, electrolyser makers rarely make public their asking prices, and only reveal them during negotiations with potential buyers under non-disclosure agreements.
Indeed, more expensive electrolysers are said to offer lower LCOH over project lifetimes than the cheapest machines.
Nevertheless, some organisations have published what they believe to be the average cost of electrolysers.
And it put the average cost of PEM electrolysers at $1,200-2,000 per kW ($1.2-2m/MW) — more than double the average $630,000/MW at the Chinese auction.
However, it is not entirely clear which parts of the electrolysis systems are included or not included in these figures, including the Energy China tender.