Fortescue Metals Group has co-led an investment of up to ¥100m ($14m) into Chinese electrolyser membrane manufacturer Hancheng Technology (Hyproof).
Alongside GL Ventures, the Australian firm has agreed to back the Shanghai-based company, which focuses on produces fluorine-based film and ion exchange membranes – critical for PEM systems.
Hyproof plans to use the Series B financing round to expand its production lines and develop new ones focused on components for anion exchange membrane (AEM) electrolysers.
H2 View understands Fortescue could potentially use the PEM solutions in its production lines for its 2GW electrolyser facility in Queensland, which opened in April.
Read more:Fortescue opens 2GW PEM electrolyser factory in Queensland
Fortescue’s 15,000sq.m facility in Gladstone is set to support the mining and energy firm’s ambitions to roll out a series of green hydrogen production projects across the globe.
Mark Hutchinson, CEO of Fortescue Energy, said the PEM electrolyser production facility will establish the company as an original equipment manufacturer (OEM).
Commenting on the Queensland site, he said, “Not only are we developing a pipeline of green energy projects, we’re also now designing and manufacturing the specialised equipment and technology that will underpin our green hydrogen production projects and that of others.”
The hydrogen industry is currently grappling with concerns that the import of Chinese electrolysers is resulting in a potential oversupply of systems.
Just yesterday (September 2), it was announced the next European Hydrogen Bank (EHB) will have “explicit criteria” to support domestic electrolyser supply chains, according to the EU’s head of climate policy.
Read more: EU climate chief vows to tighten EHB rules amid cheap Chinese electrolyser influx
EU Climate Commissioner, Wopke Hoekstra explained to an event at the Eindhoven University of Technology that whilst European electrolysers had a “good presence” in the pilot auction, “China is now oversupplying them at ever-lower costs.”
Analysis: Are we really on the brink of electrolyser oversupply?
It seems incredible that in the space of two years discussions have moved from rapidly scaling electrolyser manufacturing to the potential oversupply of the hydrogen production equipment.
We’ve come a long way from the European calls in May 2022 to “remove all obstacles,” as EU electrolyser manufacturers and the Commission committed to increase annual manufacturing capacity to 17.GW by 2025.
In recent months, however, more alarm bells have started ringing to suggest the global electrolyser market could be oversaturated by 2025.
Research house BloombergNEF (BNEF) and Citigroup has reported that 71GW of electrolyser manufacturing capacity is scheduled to be online globally by the end of 2024. However, the research said demand is only projected to reach 10GW in 20251 – a potential oversupply of 61GW.
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