Why Chinese electrolyzers don't fully solve costs

A few years ago, industry and political leaders embraced hydrogen as a solution to a laundry list of hard-to-abate decarbonization challenges — steel production, ammonia production, and more. But hydrogen failed to come down in costs and policymakers pulled back support. Ultimately, the bubble burst. 

So what does it take to drive down the costs of low-carbon hydrogen and rebuild momentum?

In this episode, Shayle talks to Raffi Garabedian, co-founder and CEO of Electric Hydrogen. (Shayle is on the board of Electric Hydrogen and Energy Impact Partners, where Shayle is a partner, invests in the company). Shayle and Raffi cover topics like:

Why the hype bubble burst: political pullback, high renewables costs driven by AI demand, and high CapEx 

The real cost problem: Why engineering, procurement, and construction (EPC) costs have remained persistently high

Competing approaches: Why Electric Hydrogen chose supersized electrolyzers over modular units

The China question: Why hydrogen’s EPC costs will limit the impact of cheap Chinese electrolyzers

Real numbers: Realistic cost targets for fossil parity and Electric Hydrogen’s current pricing

Where hydrogen wins: Markets where Raffi says green hydrogen can achieve fossil parity by the early 2030s, including Brazilian fertilizer

Resources:

Latitude Media: is 45v guidance killing green hydrogen production?

The Green Blueprint: Electric Hydrogen’s bet on supersized electrolyzers

Latitude Media: Electric Hydrogen is building through the market downturn  

Latitude Media: Hydrogen’s narrow pathway to positive climate impacts  

Latitude Media: Why the Electric Hydrogen-Ambient merger is a sign of things to come

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Credits: Hosted by Shayle Kann. Produced and edited by Daniel Woldorff. Original music and engineering by Sean Marquand. Stephen Lacey is our executive editor. 

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