IEA notes rise in mega-scale electrolyzers with 500-MW China project online

The International Energy Agency, or IEA, has noted a rise in the development and implementation of mega-scale electrolyzers, thanks to a massive 500-MW project in China. The Chinese are among the heaviest consumers of energy worldwide and, as such, require huge energy projects to deliver the electricity needed to power the nation. The IEA recently released its annual Global Hydrogen Review and stated that electrolyzers are propelling the energy sector towards a future where hydrogen is the dominant fuel source in the world.

The IEA report cautions against capacity surpassing actual energy demand

The report from the International Energy Agency states that while China leads the world in electrolyzer development, it might struggle to replicate the success it found in the Electric vehicle and AI market. The report notes that China is manufacturing electrolyzers at a much cheaper cost than the US or UK, for example, but that those advantages disappear when taking into account shipping fees, tariffs, and integration costs.

“First, electrolysers are bulky, which makes trading them globally difficult,” – International Energy Agency’s annual Global Hydrogen Review 2025

China is a global leader in the electrolyzer sector and currently accounts for 65% of global installed or FID-stage electrolyzer capacity. It also houses roughly 60% of the global manufacturing of electrolyzers, which is head and shoulders above what any other nation can boast. There are some positives to be taken from the report, as it signifies early shipping fuel opportunities and Southeast Asia’s hydrogen potential as a whole.

Envision has commissioned the ‘world’s largest’ green hydrogen and ammonia plant

Envision stated that the project, which is located in Chifeng, will be the largest green hydrogen and ammonia plant that the world has ever seen. The renewable energy sector is outpacing the progress being made by the dirty fossil fuel sector that the world has relied on for generations. The company noted that the site will be powered entirely by an off-grid renewable energy system.

The plant in the Chifeng Net Zero Industrial Park makes use of innovative AI technology to provide real-time optimization and stability, and is currently producing 320,000 tonnes of green ammonia annually from 500MW of electrolysis, with plans to begin exporting in Q4. The company’s CEO, Lei Zhang, has stated that the project can be used as a “blueprint” for clean energy hubs around the world.

He also noted the need to accelerate the transition away from fossil fuels towards energy sectors that promote the decarbonization of the energy industry overall. The global community has solidified the standing of hydrogen in the energy sector with over $110 billion in projects in several nations. Once again, China has become a global leader in the energy sector with the advanced electrolyzers they have championed.

“Scalable, green alternatives are now real and operational. We can’t get to Net Zero without green hydrogen, and we can’t afford to wait.” – Envision CEO Lei Zhang

China remains a leader in global energy capacity and is pioneering change in the sector

For a country with the exceedingly high energy demands that China has, it was always going to be an eventuality that it would develop innovative new projects that deliver vast amounts of power to the world. Japan has put pen to paper to purchase a portion of the plant’s output for use in fertilizers, chemicals, and shipping. The International Energy Agency has reported significant growth in the hydrogen sector, and the developments being made in China will have a long-lasting effect on the global energy sector for the foreseeable future. As the world inches closer to a net-zero carbon goal, the Chinese will play a crucial role in reaching the lofty ambitions the world has set.