Swedish Manufacturer to Build Chinese Electrolysers in Europe Under Licensing Deal with PERIC
Metacon Seeks Subsidies to Construct Gigafactory for Pressurised Alkaline Machines
Swedish technology company Metacon has entered into a licensing agreement with Chinese electrolyser manufacturer PERIC to produce PERIC’s pressurised alkaline technology in Europe.
Currently, Metacon resells PERIC’s Chinese-made electrolysers in the European market. To further this collaboration, Metacon is exploring various financing options, including subsidies, to establish a gigafactory in Sweden or another EU member state. The proposed facility would initially produce 500MW of electrolyser capacity annually, with plans to scale up to 1GW in the future.
Although no firm date has been set for the factory’s operation, Metacon suggests that achieving a 1GW annual manufacturing capacity within the next 4-5 years could address 1.5-3% of Europe’s demand for electrolysers. The company estimates that the total market value for electrolysers will reach 400 billion Swedish Krona ($38 billion) by 2030.
Metacon plans to produce and sell PERIC’s 5MW electrolysers at a price of around 40-50 million Krona ($3.8 million – $4.8 million) each. While this is significantly cheaper than Western-made equipment, which averages $1.7 million per MW, it is more than triple the $1.1 million price for 5MW electrolysers that PERIC recently supplied for Energy China’s tender. This discrepancy supports claims by Western developers that Chinese equipment is cost-effective primarily due to lower manufacturing costs in China and would become more expensive if produced to European standards.
“The ability to meet current and future market needs in Europe with local manufacturing, adhering to European standards and quality assurance, is a key driver behind this investment,” Metacon stated in a press release.
The EU has focused on accelerating permitting for homegrown electrolyser manufacturing but has not yet introduced restrictions on imports from China. However, discussions are ongoing among EU officials about implementing rules to prevent subsidies, based on lowest-price hydrogen production, from being allocated to projects using Chinese-made electrolysers.
PERIC is among three manufacturers that supplied equipment to China’s largest green hydrogen project, the 260MW Kuqa facility, which recently faced issues with the operating range of its electrolysers. Metacon also has a memorandum of understanding with PERIC to sell its hydrogen production equipment—which reforms biogas, ethanol, or ammonia into H2—in the Chinese market.
By bringing PERIC’s advanced electrolyser technology to Europe, Metacon aims to bolster local production capabilities and support the region’s transition to clean energy.