Green hydrogen requires cheap renewable electricity to be economically viable. China's dominance in solar manufacturing and deployment positions it to lead in electrolyzer production and hydrogen as well—extending clean energy advantages into new sectors.
The Electrolyzer Opportunity
Electrolyzers convert electricity to hydrogen through water splitting. As costs fall, green hydrogen becomes competitive with fossil-derived hydrogen, opening markets in steel, chemicals, and transport.
China's Position
Chinese electrolyzer manufacturing is scaling rapidly, with costs already below Western equivalents. Combined with the world's cheapest solar power, this creates potential green hydrogen cost advantages.
Global Implications
If China dominates green hydrogen as it does solar panels, decarbonization pathways for heavy industry worldwide would depend on Chinese supply chains. This prospect is driving alternative hydrogen strategies in Europe and elsewhere.