Metacon has expanded its OEM license and manufacturing agreement with PERIC to manufacture Chinese-designed hydrogen electrolyser stacks in Sweden.
Under the revised agreement, Metacon will produce these stacks in its planned gigafactory. Initially, the Swedish firm secured licensing to build and sell alkaline electrolyser systems using PERIC’s stacks, but this extension allows for in-house production.
Read more:Metacon and PERIC advance collaborations with EU electrolysis plant production
The license agreement has been extended from five to eight years from the start of production and represents the first partnership of this type both inside and outside of China initiated by PERIC.
In China, PERIC expects to reach about 6.5GW of its own production capacity this year. They’ve previously launched pressurised stacks in 5MW, 10MW and 15MW versions, which the company says is the “largest in the world today.”
Metacon will manufacture electrolysis plants under its own brand, using the key components from PERIC to start with. Additionally, they will modify the systems to meet European regulations and use local parts to enhance sustainability.
The extended agreement allows Metacon to launch production in Sweden quickly with lower initial investment, while PERIC can also provide additional capacity as needed.
“We are now further strengthening our partnership with PERIC and providing ourselves and PERIC with the conditions to be able to build a highly competitive Europen production of one of the world’s most proven and cost-effective electrolysis platforms for the first time in history,” said Christer Wikner, President and CEO at Metacon.
Last September, the EU published the final T&Cs for its second €1.2bn European Hydrogen Bank (EHB) with limits on Chinese electrolyser sourcing,
Read more:EU unveils second EHB auction T&Cs with limits on Chinese electrolyser sourcing
Bidders were required to prove that no more than 25% of electrolyser stacks could be sourced from China.
The EHB warns of significant risk to the EU’s security of supply due to increasing dependency on Chinese electrolyser imports, as China’s production surpasses both its domestic targets and global demand projection.
Chinese electrolysers alone don’t move the needle on costs: Splitwaters
Splitwaters’ CEO claimed its integrated electrolyser and engineering, procurement and construction (EPC) model cuts CAPEX by up to 30%, offering a cost-effective alternative to Chinese electrolysers that require separate engineering services.
“China is generally the lowest-cost producer,” explained CEO Deepak Bawa. “But you have to make sure you commission [an electrolyser] the right way. So quality is a big deal here and where I think all of the right suppliers are going to flourish.
“The competition from China is just providing a cheaper product, and you will then need an EPC company to build everything around it and install it.
“Equipment costs are 30-40% of the project costs, so even if they are providing a cheaper solution, it’s not moving the needle that much.”
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