China faces RE supply challenges in green hydrogen production

Around 20 GW of onshore wind is needed to produce one million tpa of green hydrogen.

Having sufficient renewable energy capacity to power electrolysers remains a significant challenge in green hydrogen production in China as the sector has to compete for supply with other electrification needs.

In a report, Rystad Energy said operating electrolysers below the nameplate capacity could lead to safety risks.

Alkaline electrolysers operate within the range of 30% and 100% of their nameplate yield.

If the power supply is insufficient, resulting in electrolysers running at less than 30% of their maximum capacity, these technologies will be forced to shut down. Otherwise, it could lead to gas mixing and potential explosion.

“Despite these challenges, Rystad Energy expects the share of green hydrogen to continue to grow in China, especially since it is installing new electrolyser capacity at a world-leading pace every year, a similar trajectory seen in the solar PV and wind industry, which China continues to lead,” the report read. 

“By 2030, China’s four largest projects will account for up to half of the country’s total green hydrogen production capacity,” it added.