[SMM Weekly Review of Hydrogen Production Cost via Water Electrolysis] Week of May 15, 2025

Influenced by the slight increase in electricity prices in the power grids of Beijing, Shanghai, Guangzhou, Shenzhen, and eastern China, the cost of hydrogen production through water electrolysis rose slightly this week. Electricity prices in north-west China remained stable, with no significant fluctuations observed. In April, electricity prices in the power grids of Beijing, Shanghai, Guangzhou, Shenzhen, and eastern China generally increased, mostly by over 0.6 yuan/kwh, driving up the cost of hydrogen production through water electrolysis by 0.05-0.1 yuan. Electricity prices in the power grids of north-west China remained stable, with no significant changes in the cost of hydrogen production through water electrolysis. Based on this, the cost of hydrogen production through water electrolysis was generally 6 yuan/m³ in June, and in regions where electricity prices were below 0.4 yuan/kwh in western China, the cost was 4.5 yuan/m³.

In the hydrogen trading market, the circulation volume of hydrogen produced through water electrolysis was relatively low, and the delivery price remained unchanged. According to first-hand survey data, the price range for hydrogen produced through water electrolysis in Beijing (including subsidies and freight) was 9.5 to 12.5 yuan/m³, while in Yunnan, the price was 8.0 to 9.2 yuan/m³ (also including freight), with freight accounting for approximately 25% to 30% of the total cost.