Interview with Jan-Justus Schmidt, Co-Founder Enapter and Board Member Wolong Enapter JV

China is now considered one of the key markets for the global scale-up of green hydrogen. Government-funded large-scale projects, a clear political focus on decarbonization, and a rapidly growing industrial sector make the country a central arena for the energy transition. At Enapter, we are also increasingly focusing on China – through the newly established joint venture with our Chinese industrial partner Wolong.

In this interview Jan-Justus Schmidt, Enapter’s co-founder and Board Member for the Wolong Enapter JV, explains the strategic role the company wants to play in the Chinese market. He talks about opportunities and challenges in international cooperation, technological sovereignty, and the ambition to establish AEM electrolysis as the new standard for scalable hydrogen production.

China is considered one of the fastest-growing hydrogen markets in the world.What specific role is Enapter aiming to take in the future through the joint venture – as a technology supplier, manufacturer, or market shaper? What effects will this have on business in the rest of the world?

China will play a decisive role in the coming years in scaling up green hydrogen. Our role with the joint venture is clear: We are bringing Enapter’s AEM technology as a technology leader to China – in the form of locally produced, modular electrolysers that can be scaled for both small and large applications. In doing so, we see ourselves not only as a supplier but as a co-creator of a growing market in which we are setting new standards together with a Chinese industrial partner. The learning effect from this scaling – in terms of both production and project implementation – will strengthen us globally.

There is often scepticism in Europe regarding technology transfers to China – particularly in the field of future technologies. How does Enapter address concerns that know-how could be lost or copied in the course of the cooperation?

Our partnership with Wolong is clearly structured to enable the most open and trusting collaboration possible, while optimally protecting the core of Enapter’s know-how. Enapter’s AEM technology will therefore continue to be developed and built at our site in Pisa, while the joint venture focuses on system integration and production of the plant periphery (BOP).
I would like to reiterate a point that we already made at the founding of the JV: The greater risk would be not to go to China. The fact that we are right can be seen during a tour of hydrogen-focused industrial trade fairs in China – AEM electrolysis is now everywhere. Some market players are working on products that are obviously just imitations of our successful AEM electrolysers. But there are also those who are trying to bring their own innovations in AEM electrolysis to the market. There is no such thing as 100% security – we have to continue to innovate and work together with our partners to accelerate the scaling of our solutions in order to further expand our leadership position in this new market.

In previous statements, you have emphasised the modularity and scalability of the AEM technology as key to mass production. How can this concept be concretely applied to the Chinese market – especially in the context of the massive government support programmes there?

China is predestined for a modular approach. The government programmes aim for fast, large-scale implementation with a strong focus on industrial integration. This is precisely where our technology shows its strengths: Instead of monolithic large-scale plants, we can deliver scalable, prefabricated systems that can be flexibly adapted to existing infrastructures. This lowers entry barriers and enables many market participants to quickly implement their own projects. In large-scale projects, our systems can also serve as a flexible complement to the well-known alkaline large-scale plants in order to increase the overall effectiveness of hydrogen production. Our goal is for AEM technology to become the standard for scalable hydrogen production. This applies to China as well.

Wolong has a strong presence in China in the fields of electric motors and industrial automation. What specific know-how does this bring to the partnership, and how does it complement Enapter’s expertise in electrolysis?

Wolong brings exactly the industrial backbone needed to be successful in the series production of our electrolysis systems. They operate 42 factories where they manufacture electric motors, battery systems, and many other industrial products and systems. In this way, Wolong is a major asset to us in terms of their supplier network, production depth, and quality assurance. In particular, the know-how in the series production of electrical components and battery systems, which are also relevant for our systems, is a strategic advantage. Enapter brings the AEM technology and system intelligence – Wolong brings industrial excellence. This combination makes the partnership so powerful.

China’s hydrogen strategy places strong emphasis on green hydrogen – especially for industry, heavy-duty transport, and eventually energy exports. How can Enapter help ensure that AEM electrolysers become a central part of this strategy?

AEM is now considered the most forward-looking electrolysis technology – not only because of its potential for low operating costs, but also due to its material efficiency and simple scalability. We are convinced: As the industry moves to mass production, AEM will economically surpass large alkaline systems and prevail on the market over other low-temperature electrolysis technologies.
During the transition phase, we also see clear advantages in hybrid plant concepts: The combination of established ALK systems with highly flexible AEM technology makes hydrogen projects more robust, more adaptable, and above all better integrated into fluctuating renewable energies. This is especially relevant for off-grid projects that are to be operated independently of the power grid. This is a point that has become extremely important to project developers in China, especially in regions with strong solar or wind availability, such as Inner Mongolia.
Our goal is to position AEM not just as a niche solution, but as a core technology for a decentralised, scalable, and future-proof hydrogen economy in China.

How do you ensure that your sustainability standards – both in production and throughout the product lifecycle – are upheld in the cooperation with a Chinese partner?

We also use the system periphery produced in our JV for electrolysis systems in Europe. This means that the system design, all components, and their suppliers are subject to the same standards and certification requirements as in Europe. In China, we also work with independent testing and certification organisations such as TÜV to verify compliance with all relevant requirements in our joint venture and with our suppliers.

Final question: Many speak of a new geopolitical race for hydrogen technology. Is your China strategy a pragmatic step to remain globally relevant – or rather a calculated risk with high strategic potential?

Both. We would be naive to ignore the geopolitical environment – but at the same time, it would be a strategic mistake to exclude China. Our decision for the joint venture is a controlled and well-planned step to further improve and secure our global competitiveness in the long term. We are committed to a strong local presence in China with our strategic partner. Green hydrogen is without alternative if we are to displace fossil energy sources and help mitigate the consequences of climate change. The race in the hydrogen market will not be won nationally but decided globally. Our China strategy is a key reason why we will remain part of it in the long term.

Thank you for the interview.