© Sungrow Hydrogen

Canadian electrolyzer manufacturer Next Hydrogen has partnered with China’s Sungrow Hydrogen Sci&Tech to speed up the commercial rollout of its water electrolysis technology. The agreement allows Next Hydrogen to use Sungrow Hydrogen’s 3GW manufacturing facility in Hefei, Anhui province, enabling large-scale production from 2026. This move strengthens Next Hydrogen’s supply chain while keeping control over its intellectual property and electrolyzer design.

Sungrow Hydrogen, a major global electrolyzer manufacturer, will provide the balance-of-plant (BoP) systems, improving supply chain efficiency and cutting costs. Both companies will also work together on developing and selling products to expand their offerings in the green hydrogen sector.

Market Expansion and Possible Acquisition

The partnership gives Sungrow Hydrogen a clear entry into the North American market by allowing it to sell its electrolyzers in the region while manufacturing Next Hydrogen’s technology at scale. The companies are also looking at expanding Next Hydrogen’s manufacturing presence in North America. This plan aims to support regional clean energy policies and ensure flexible, local production.

Sungrow Hydrogen’s parent company has a market capitalization of over $19.3 billion, much larger than Next Hydrogen’s $15 million valuation. The agreement has led to speculation about a possible acquisition, which would give Sungrow Hydrogen a stronger position in North America.

Expanding Green Hydrogen Use

Next Hydrogen’s technology connects directly with renewable energy sources, using a patented cell design that improves efficiency in converting intermittent power into green hydrogen. This supports the companies’ shared goal of offering scalable, cost-effective solutions for industries such as ammonia production, aviation fuel, refining, steelmaking, and transportation.

Next Hydrogen CEO Raveel Afzaal highlighted the importance of using Sungrow Hydrogen’s expertise to scale production and meet the growing demand for green hydrogen. Sungrow Hydrogen chairman Peng Chaocai said the collaboration would help increase green hydrogen adoption by combining both firms’ expertise in water electrolysis.