Reference News Network, November 25 report: The U.S. magazine Foreign Policy's bi-monthly website published an article titled "China Has Already Gained the Lead in the Next Generation of Energy Supply Chains" on November 10, authored by Jane Nakano and Matthias Sakalas. The translation is as follows:

While the United States is pursuing an energy dominance vision centered around fossil fuels, China is gradually taking control of another future energy supply chain. Key technologies for producing low-emission hydrogen are rapidly becoming one of the latest frontiers in geopolitical economic competition, and the United States may once again fall behind.

Hydrogen is often referred to as the "Swiss Army knife" of the energy transition, due to its unique flexibility. It can be produced from a variety of resources, including natural gas and renewable energy. One of the greatest values of hydrogen is that it helps "hard-to-decarbonize" industries achieve decarbonization. These industries lack cost-effective clean alternatives and are difficult to electrify, including key industrial sectors such as petrochemical refining and steel manufacturing, as well as industries providing innovative clean fuels for maritime and air transport. In addition, hydrogen can be used for long-term energy storage, meaning it can be used to enhance the integration, resilience, and reliability of energy systems.

In short, the application of hydrogen can give the U.S. industry a competitive advantage on the global stage, create new export opportunities, and strengthen the domestic power system.

Now, there is concern that history may repeat itself: the United States and its allies lead in innovation, but lag behind in manufacturing and reducing costs. China has already taken a dominant position in the global supply chains of solar photovoltaics and electric vehicle batteries. Now, China is intensifying efforts to replicate this success in the field of electrolyzers. Electrolyzers are key equipment that use electricity to split water into hydrogen and oxygen. In addition, China is heavily investing in research and development of advanced electrolyzer technologies, aiming at global export opportunities.

China's efforts in developing hydrogen are too numerous to list, but several key facts stand out. First, China is not only the world's largest producer and consumer of hydrogen, but also has the world's largest electrolyzer capacity. Moreover, in the global alkaline electrolyzer manufacturing sector, China accounts for about 60% of the capacity and is leading the world. China's latest focus is to expand its technological advantages from alkaline electrolyzers to proton exchange membrane electrolyzer technology - a technology that is more flexible and better compatible with renewable energy.

China's development of hydrogen is not just for climate benefits, but is closely linked to strategic goals such as the resilience of the power system and energy independence.

Although manufacturing competitiveness is crucial, there is no doubt that sustained investment in innovation is equally essential for building a strong and diversified supply chain. Between 2005 and 2020, the United States, Germany, and Japan accounted for nearly two-thirds of the top ten countries in terms of international patent applications related to electrolyzers. During the same period, only 3% of China's patents were international patents, as China's focus was still on the vast domestic market. However, this situation is changing rapidly. According to reports, a survey of hydrogen-related patents filed globally between 2013 and 2022 showed that China has become the country with the most hydrogen-related patents (especially hydrogen production technology) worldwide. Currently, China has not fully mastered the complex stack design and engineering technology, nor the technology for manufacturing stack components and compressors for proton exchange membrane electrolyzers. However, China surpassing the West in innovation is merely a matter of time.

At the same time, the U.S. hydrogen economy is at a critical turning point. The incentive mechanisms provided by the Infrastructure Investment and Jobs Act for expanding the scale of electrolyzer manufacturing and deployment, as well as the powerful clean hydrogen production ecosystem expected to form under the Inflation Reduction Act, are currently in an uncertain state. The $1.5 billion funding allocated in the Infrastructure Investment and Jobs Act for R&D, demonstration, and deployment of electrolyzer manufacturing and recycling - a key support for the U.S. to maintain global competitiveness - has been affected by a recent wave of project cancellations. Funding cuts, along with the bleak prospects for domestic hydrogen projects based on electrolysis technology, have placed the U.S. electrolyzer industry in a tough future.

Worse still, time is not on the U.S. side. Meanwhile, China is working hard to overcome technical challenges. (Translated by Liu Zongya)

Original: https://www.toutiao.com/article/7576608498042978831/

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