VDE: Europe's green hydrogen industry may fall behind China's market share

Burkhard Holder, head of global trends and innovation at Verband Deutscher Elektrotechniker, the German Association of Electrical Engineers, said that Europe's renewable energy industry could once again be left behind, and the VDE is preventing that from happening.

In its white paper, VDE points out that many of the same companies that killed the European photovoltaic industry in the 2010s are now expanding into electrolytic hydrogen manufacturing. Europe has "plans for more than 90GW of (installed) capacity by 2030," making it the largest potential market for electrolyzers.

At the same time, VDE warned in the report that the data on electrolyzers installed so far indicate that Chinese producers will continue to dominate in the future, which is becoming a reality. Back in 2023, Jorgo Chatzimarkakis, CEO of Hydrogen Europe, said Germany was opposed to the European Commission setting rules to prevent subsidies from being used to buy electrolyzers produced in China.

The VDE white paper also points out that the PV market is likely to drive green hydrogen development due to rising energy costs, with the average cost of hydrogen production rising from $2.90 to $5 per kilogram. In this regard, VDE said that these same high energy prices have made solar a more attractive investment, thanks to the Chinese manufacturers (fierce competition) (capacity) excess has led to a sharp drop in PV module prices.

According to relevant information, Burkhard Holder, President of VDE's Renewable Energy Division, and Jorgo Chatzimarkakis, president of Hydrogen Europe, signed a membership agreement to join Hydrogen Europe at Solar Europe 2022.

Burkhard Holder, President of VDE's Renewable Energy Division, said: "By joining Hydrogen Europe, we will be able to contribute to the development of the hydrogen industry with our experience in areas such as solar and wind power." VDE will also participate in the work of Hydrogen Europe to ensure the safety and quality of new products.