According to the company's Vice President, Li Yinhui, revenues from CIMC's hydrogen business reached approximately 1 billion yuan ($139 million) last year, and there are expectations that this figure could more than double by 2025.
CIMC specializes in producing electrolyzers capable of generating hydrogen and storage containers for the gas. The company recently unveiled a cutting-edge electrolyzer at an event in Shenzhen, designed to operate more efficiently amidst fluctuating power flows.
This technology is deemed crucial for the production of green hydrogen, a carbon-free fuel derived from intermittent wind and solar sources.
Green hydrogen has gained prominence for its potential role in decarbonizing heavy industries such as steel, cement, and chemicals, and is also considered a viable option for clean energy storage and transportation. Notably, China currently holds a commanding 72% share of the global capacity for electrolyzer production, according to BloombergNEF.
CIMC, a state-owned enterprise, has been involved in manufacturing containers for hydrogen transportation since 2006. In 2022, the company acquired an electrolyzer factory in Yangzhou, Eastern China, capable of producing approximately 1 gigawatt per year, making it the country's seventh-largest producer. Despite the remarkable strides in the hydrogen sector, it still constitutes less than 1% of CIMC's primary listed unit's revenues as of 2022.
An interesting aspect of CIMC's new electrolyzer is its utilization of advanced materials, enabling safe operation even when the equipment is functioning at just 20% of its full capacity.
This sets it apart from other electrolyzers that may need to shut down to mitigate the risk of flammable gas explosions during power fluctuations, as explained by Lv Aiguo, an executive vice president within CIMC's hydrogen-production unit.
The significance of stable electrolyzer performance was highlighted by the operational challenges faced by China Petroleum & Chemical Corp. at its green hydrogen plant in Xinjiang, the world's largest.
Last year, the company attributed issues to electrolyzers struggling to handle power fluctuations from intermittent renewable sources. As CIMC continues to innovate in the hydrogen sector, the global maritime industry watches closely for the potential transformative impact on sustainable energy practices.