Leading container manufacturer CIMC reports revenue boost from hydrogen ventures, highlighting growing interest in clean fuel adoption. (Bloomberg)
The leading manufacturer of shipping containers globally has experienced a significant rise in profits stemming from its hydrogen-related ventures, indicating a growing commercial interest in the use of clean fuel. China International Marine Containers Group Co. (CIMC) specializes in producing electrolyzers capable of generating hydrogen and storage containers for the gas. According to the company's Vice President, Li Yinhui, these endeavors amassed around 1 billion yuan ($139 million) in sales last year.
Projections suggest that this figure could more than double by 2025, as stated during an event in Shenzhen where CIMC unveiled an upgraded electrolyzer designed to better manage fluctuating power supplies. CIMC asserts that such technology is crucial for the production of green hydrogen, a form of carbon-free fuel derived from intermittent sources like wind and solar power.
Recognized for its potential in decarbonizing heavy industries such as steel, cement, and chemicals, green hydrogen could also play a role in transportation and clean energy storage. China dominates the global market for electrolyzer production, accounting for approximately 72% of capacity, according to BloombergNEF.
As a state-owned enterprise, CIMC has been manufacturing hydrogen transportation containers since 2006 and acquired an electrolyzer facility in Yangzhou, eastern China, in 2022. With an annual output capacity of about 1 gigawatt, this plant ranks as the country's seventh-largest electrolyzer producer. Nevertheless, hydrogen-related activities represent a small fraction of CIMC's overall business, contributing less than 1% of revenues for its primary publicly listed unit in 2022.
The latest electrolyzer developed by CIMC utilizes advanced materials that enable it to operate safely even when running at just 20% of its maximum capacity. This innovation addresses a common issue faced by other electrolyzers, which typically shut down during periods of low electricity supply to prevent the risk of gas explosions, according to Lv Aiguo, an executive vice president within CIMC's hydrogen production division.
Notably, operational challenges encountered by China Petroleum & Chemical Corp. at its green hydrogen plant in Xinjiang, the world's largest of its kind, were attributed to electrolyzers' inability to adapt to fluctuations in power from renewable sources.
