Background

In the rapidly expanding global hydrogen industry, scale has become one of the most frequently discussed keywords.

Across China and around the world, companies are racing to develop larger electrolyzers, bigger renewable hydrogen projects and increasingly ambitious industrial applications. Gigawatt-scale hydrogen hubs and thousand-cubic-meter-per-hour electrolyzers have become symbols of industry progress.

But behind every large-scale energy transition, there is another group of companies quietly building the foundations.

They develop testing platforms, laboratory equipment, specialized technologies and solutions for customers whose needs are smaller—but no less important.

Located in an industrial park on the western side of Jinan, Shandong Province, less than 10 kilometers from Jinan West Railway Station, Shandong Hydrogen Carrier Co., Ltd. is one of those companies.

Founded in 2023, the company focuses on small-scale water electrolysis systems, customized hydrogen production equipment and testing services. Instead of competing directly in the race toward ever-larger electrolyzers, Hydrogen Carrier has chosen a more specialized path: serving universities, research institutions, technology developers and emerging hydrogen applications that require flexible, reliable and customized systems.

For founder Gao Chao, the decision was not about avoiding competition.

It was about identifying where real value could be created.

"The hydrogen industry still has many fundamental problems to solve," Gao said. "Before we build bigger systems, we need better products, better standards and stronger engineering capabilities."

FuelCellChina recently visited Shandong Hydrogen Carrier and spoke with Gao Chao about entrepreneurship, technology development, China's hydrogen industry and why sometimes the most meaningful contributions come from the overlooked corners of an emerging market.

 

 

A Connection That Began Before We Met

My connection with Gao Chao started long before our first conversation.

In 2023, an article published by international hydrogen media about Sinopec's Kuqa Green Hydrogen Demonstration Project attracted significant attention within China's hydrogen industry.

The project, located in Xinjiang, was one of the world's largest green hydrogen demonstration projects at that time. However, some industry professionals in China believed that parts of the international coverage lacked sufficient understanding of the project's technical background and the challenges faced by Chinese hydrogen companies.

While researching the background information, I was introduced by my friend Dennis Lin to an article titled:

"My Perspective on Sinopec's Xinjiang Kuqa Project."

The article immediately stood out.

Instead of simply defending the project or criticizing external opinions, the author provided a structured analysis based on data, engineering realities and operational experience.

For someone still exploring the hydrogen industry at that time, the article helped clarify many questions:

• What did the Kuqa project really represent?
• What were the technical challenges behind large-scale green hydrogen production?
• Where were the gaps between industry expectations and real-world operation?

The author of that article was Gao Chao.

 

Meeting the Author Without Knowing It

Our first face-to-face meeting happened in Beijing in the summer of 2025.

We talked, shared a meal and took a group photo together.

But interestingly, I did not immediately connect the entrepreneur sitting in front of me with the author of the widely discussed Kuqa analysis.

Only later did I realize that the calm, practical and thoughtful entrepreneur I had met was the same person whose article had impressed me two years earlier.

That coincidence became the beginning of a deeper connection.

 

When a Small Order Revealed a Bigger Philosophy

Our collaboration with Hydrogen Carrier began in early 2026.

A Turkish hydrogen researcher who had moved from an electrolyzer company to a university was looking for a customized small-scale electrolyzer testing system for students.

The technical requirements were clear:

A compact electrolyzer.

Suitable for teaching and research.

Affordable enough for a university laboratory.

The challenge was finding a supplier.

At that time, almost all major electrolyzer manufacturers were focusing on large-scale commercial projects.

The global hydrogen market was increasingly concentrated around:

• megawatt-scale systems,
• modular large electrolyzers,
• industrial hydrogen production.

A small laboratory-scale order simply did not fit the priorities of many suppliers.

Several companies declined.

Not because they lacked the capability.

But because the order was too small.

 

Then Dennis suggested:

"Why don't you ask Gao Chao at Hydrogen Carrier? He can do it."

 

Only at that moment did I realize:

The person we needed had actually been someone we already knew.

After learning about the project requirements, Gao immediately discussed the technical details in depth and accepted the order.

Soon afterward, he shared factory videos showing a clean production environment where different types of small-scale electrolyzers—including alkaline and AEM systems—were undergoing testing.

The subsequent technical communication, price negotiation and factory visit all progressed smoothly.

The project was completed because Hydrogen Carrier was willing to listen to a customer whose needs were small—but meaningful.

And that experience reflected one of Gao's core beliefs:

 

A company's reputation is built not only through major projects, but also through every customer interaction.

 

Why Start a Hydrogen Company in 2023?

"The Industry Was Immature—And That Was Exactly Why We Started"

When asked why he decided to establish a hydrogen company in early 2023, Gao admitted that the timing was not easy.

The hydrogen industry was experiencing a unique transition period.

On one hand:

• national strategies were supporting hydrogen development;
• local governments were introducing hydrogen-related policies;
• investment enthusiasm remained high.

On the other hand:

• competition was intensifying;
• many companies were entering the market;
• industry attention was increasingly concentrated on large-scale projects.

"Many companies were looking at big projects, big capacity and big numbers," Gao said.

"But we believed the industry still needed people willing to focus on fundamental capabilities."

His decision to start a company was based on two observations.

 

First: China's Hydrogen Industry Still Has a Long Way to Go

China is currently the world's largest hydrogen producer.

However, most hydrogen production still comes from traditional fossil-based processes, while green hydrogen remains at an early stage of commercialization.

For Gao, this meant the hydrogen industry was not a mature market where only large corporations could compete.

Instead, it was still a developing ecosystem where specialized companies could find opportunities.

"When an industry is still evolving, there are always unanswered questions," Gao explained.

"Those unanswered questions are where entrepreneurs can create value."

 

Second: The Market Needed Smaller, More Flexible Electrolyzers

At the time Hydrogen Carrier was founded, most industry attention was focused on large-scale electrolyzers.

Manufacturers were competing to develop systems with increasingly higher hydrogen production capacity.

However, Gao noticed another reality:

Many users did not need thousands of cubic meters per hour.

They needed:

• research equipment;
• testing platforms;
• educational systems;
• distributed hydrogen solutions;
• customized engineering support.

These needs existed—but they were often overlooked.

"The market does not only need giants," Gao said.

"It also needs companies willing to solve specific problems."

 

Beyond Electrolysis: Why Hydrogen Needs to Learn from Other Industries

Looking at Hydrogen Equipment Through a Manufacturing Lens

When people in the hydrogen industry discuss electrolyzers, conversations often focus on electrochemistry:

• catalyst performance,
• membrane materials,
• current density,
• energy consumption,
• hydrogen production efficiency.

These technical indicators are certainly important.

However, Gao Chao believes the industry needs to broaden its perspective.

From his point of view, electrolyzers are not only energy devices.

They are also complex industrial products.

"If we look at hydrogen equipment from the perspective of the entire manufacturing process—research and development, design, production, testing, delivery and after-sales service—we will find that many parts of the industry are still in an early stage of development," Gao said.

In mature manufacturing sectors such as automotive, semiconductors and medical devices, companies have spent decades building systematic approaches to product development.

These include:

• Integrated Product Development (IPD);
• Design for Manufacturing (DFM);
• Failure Mode and Effects Analysis (FMEA);
• standardized quality management systems;
• lifecycle management processes.

According to Gao, the hydrogen industry needs to learn from these established industries.

"Hydrogen companies should not only understand electrochemistry. They also need to understand product development, manufacturing engineering and quality systems."

 

The Missing Link: From Technical Breakthroughs to Reliable Products

One of Gao's biggest concerns is that hydrogen equipment development today is still too often driven by individual projects rather than systematic product engineering.

In many cases, companies respond directly to market demand:

A customer requests a larger electrolyzer.

The company increases the equipment size.

The market shifts toward another technology.

The company adjusts its production strategy.

However, this approach may not create long-term competitiveness.

A mature industrial product requires a complete development methodology:

• defining customer requirements;
• selecting appropriate technical solutions;
• designing for manufacturing;
• analyzing potential failure risks;
• validating performance under different operating conditions;
• improving reliability through continuous feedback.

Without such systems, engineering experience remains inside individual experts rather than becoming organizational capability.

"A company cannot rely only on the experience of a few engineers," Gao explained.

"Experience needs to become a repeatable system."

 

Why Hydrogen Must "Look Beyond Itself"

 

Gao believes the hydrogen industry needs to "look beyond itself" and learn from three external sources.

 

1. Learning from Mature Manufacturing Industries

The first direction is manufacturing expertise.

Automotive companies, semiconductor manufacturers and medical equipment producers have developed sophisticated methods for managing complex products.

Hydrogen companies can learn from these industries in areas such as:

• product architecture;
• supply chain management;
• manufacturing consistency;
• quality control;
• customer service.

"A successful hydrogen equipment company in the future will not only be a technology company," Gao said.

"It will also need to be an excellent manufacturing company."

 

2. Connecting More Closely with Universities and Research Institutions

The second direction is cooperation with academia.

Many future breakthroughs in hydrogen technology will depend on advances in fundamental materials:

• catalysts;
• membranes;
• electrodes;
• sealing materials;
• advanced manufacturing processes.

Universities and research institutes play a critical role in developing these technologies.

But translating laboratory achievements into commercial products remains a major challenge.

Gao believes companies must become the bridge between scientific research and industrial application.

"The distance between a laboratory achievement and a commercial product is often the most difficult step," he said.

"Companies need to actively participate in that transition."

 

3. Learning from International Hydrogen Experience

The third direction is international cooperation.

Europe, Japan and North America began hydrogen development earlier and have accumulated valuable experience in areas such as:

• long-term electrolyzer operation;
• system integration;
• safety standards;
• hydrogen infrastructure.

For Gao, international cooperation is not simply about importing technology.

It is about learning from experience.

"Understanding what others have tried, what problems they encountered and what lessons they learned can help the industry avoid repeating the same mistakes."

 

Why Hydrogen Carrier Chose Small-Scale Electrolyzers

While many companies are pursuing larger and larger electrolyzers, Hydrogen Carrier deliberately chose the opposite direction.

The decision was not because the company wanted to avoid competition.

Rather, Gao believes different scales serve different purposes.

"The industry often asks: How large can we make an electrolyzer?"

"But another question is equally important: Where does each size of equipment create the most value?"

 

Small Systems, Real Applications

According to Gao, small-scale electrolyzers serve several important markets.

1. Research and Testing

Universities, research institutes and technology companies often require flexible systems to test:

• new catalysts;
• membrane materials;
• electrode structures;
• control strategies.

For these users, a large industrial electrolyzer is unnecessary.

They need equipment that is:

• accessible;
• flexible;
• easy to operate;
• suitable for repeated testing.

 

2. Distributed Hydrogen Applications

Not every hydrogen application requires centralized production.

Some scenarios—including:

• hydrogen refueling stations;
• distributed energy systems;
• industrial demonstration projects;
• hydrogen forklifts and specialty vehicles—

may benefit from smaller modular systems.

Small electrolyzers can provide flexibility that large centralized systems cannot easily offer.

 

3. Technology Validation

Small systems also provide an important testing platform for emerging technologies.

Before a new material or process can be commercialized at industrial scale, it needs validation.

A smaller system allows researchers and companies to:

• reduce testing costs;
• shorten development cycles;
• identify technical problems earlier.

"A small electrolyzer can become the starting point for a much bigger technology breakthrough," Gao said.

 

4. Hydrogen Education and Talent Development

One area Gao considers particularly important is education.

The hydrogen industry requires thousands of engineers, technicians and operators.

But practical training requires practical equipment.

"Without good testing equipment and training platforms, it will be difficult to develop the next generation of hydrogen professionals."

For Gao, small-scale electrolyzers are not just products.

They are part of the industry's infrastructure.

 

From Testing Services to Equipment Sales: Building a Business Loop

Hydrogen Carrier operates not only as an equipment supplier but also provides hydrogen testing services.

At first glance, these may appear to be two separate businesses.

However, Gao sees them as complementary.

"Testing brings customers. Equipment builds trust. The two businesses support each other."

 

Testing as the Entry Point

Many customers do not immediately purchase electrolyzers.

They first need testing:

• testing a new membrane electrode;
• evaluating catalyst performance;
• comparing operating conditions;
• collecting experimental data.

Hydrogen Carrier provides the testing environment, equipment and technical support.

During this process, customers experience:

• equipment reliability;
• operational convenience;
• data quality;
• technical capability.

Many equipment purchases naturally develop from these testing relationships.

 

Real-World Testing Improves Products

The relationship also works in the opposite direction.

Testing services allow Hydrogen Carrier to continuously improve its own products.

Because its equipment operates under different conditions and with different customer requirements, the company receives constant feedback:

• How stable is the system after long-term operation?
• How reliable is the control system?
• How easy is the equipment for non-specialists to operate?
• Where can the design be improved?

Every customer test becomes a real-world product validation.

 

The Industry Need for Independent Testing Platforms

Gao believes another important gap exists in today's hydrogen market:

A lack of independent and professional testing capabilities.

As the industry expands, customers increasingly need reliable data to compare different technologies and suppliers.

However, testing standards, performance evaluation methods and lifecycle assessment approaches are still developing.

Without reliable testing infrastructure, it becomes difficult for users to make informed decisions.

"The industry needs more objective data," Gao said.

"Technology development should be supported by real operational experience, not only by laboratory results or marketing materials."

For Hydrogen Carrier, testing services are not simply a commercial opportunity.

They are also a way to contribute to a healthier hydrogen ecosystem.

 

China's Hydrogen Industry: From Scale Expansion to Quality Growth

"The Industry Is Entering a New Phase"

Looking at China's hydrogen industry today, Gao Chao believes the sector is entering a critical transition period.

"China's hydrogen industry is moving from policy-driven growth toward a stage where market forces will play a much bigger role," he said.

Over the past several years, policy support has accelerated the development of hydrogen technologies across the country.

From hydrogen production and storage to transportation and industrial applications, a complete value chain is gradually taking shape.

At the same time, Gao believes the industry must become more mature.

"The next stage will not only be about building more projects. It will be about building better products and creating sustainable business models."

 

The Challenge of Homogeneous Competition

One of Gao's biggest concerns is the increasing level of competition in the alkaline electrolyzer market.

As hydrogen development accelerated, hundreds of companies entered the electrolyzer sector.

Many companies began competing through similar approaches:

• increasing hydrogen production capacity;
• reducing equipment prices;
• expanding manufacturing scale.

From a market perspective, competition can accelerate cost reduction.

However, Gao believes excessive focus on scale and price may create new challenges.

"When many companies provide similar products, competition naturally moves toward price," he explained.

"But if prices fall below a reasonable level, companies may have less ability to invest in research, quality control and long-term improvement."

For hydrogen equipment, reliability is especially important.

Electrolyzers involve high-pressure systems, hydrogen and oxygen management, and long-term continuous operation.

Small compromises in:

• materials;
• manufacturing processes;
• testing procedures;

can eventually affect safety and performance.

"The hydrogen industry cannot only compete on who offers the lowest price," Gao said.

"It must also compete on who can build the most reliable products."

 

Technology Routes: No Single Winner

When discussing future technology pathways, Gao does not believe one electrolyzer technology will dominate every application.

Instead, different technologies will likely find their own markets.

Alkaline Electrolysis

Alkaline electrolyzers are expected to remain the mainstream solution for large-scale industrial hydrogen production.

Their advantages include:

• mature technology;
• relatively low cost;
• large-scale deployment experience.

However, further improvements are still needed in:

• efficiency;
• system integration;
• operational flexibility;
• standardization.

 

PEM Electrolysis

PEM technology is likely to continue expanding, especially in applications requiring:

• dynamic operation;
• renewable energy integration;
• rapid response.

Gao believes PEM's future growth will depend on continued progress in:

• reducing precious metal usage;
• improving membrane electrode manufacturing;
• achieving larger-scale production.

 

AEM Electrolysis

AEM represents another promising pathway.

The technology aims to combine some advantages of both alkaline and PEM systems:

• lower cost potential;
• higher flexibility;
• simplified materials requirements.

However, long-term operational data and commercial validation remain important.

"The industry needs patience," Gao said.

"Technology maturity comes from years of operation, not only from laboratory results or early demonstrations."

 

The Story Behind the Name "Hydrogen Carrier"

Behind every company name is often a story about identity.

For Gao, the name Hydrogen Carrier carries two meanings.

The first is related to his hometown.

The Chinese name "氢舟" sounds similar to "青州"—a historic city in Shandong Province where Gao was born.

"I wanted the company name to reflect where I came from," he explained.

"No matter how far we go, our roots remain in Shandong."

The second meaning comes from the image of a boat.

The Chinese character "舟" means boat, inspired by the famous line from Chinese poet Li Bai:

"The light boat has already passed thousands of mountains."

For Gao, hydrogen entrepreneurship is exactly such a journey.

The industry is full of challenges:

• technological uncertainty;
• market pressure;
• customer development;
• financial constraints.

"There are always mountains ahead," Gao said.

"But we choose to build a light boat—small, flexible and focused on moving forward."

For him:

Hydrogen is the direction.

The boat is the path.

The journey continues.

 

The "Shandong Spirit" Behind the Entrepreneur

During the interview, one quality was especially clear:

A practical approach.

Gao described this as a common characteristic among many entrepreneurs from Shandong.

Not chasing shortcuts.

Not relying on exaggerated promises.

Focusing on execution.

"Being practical does not mean being conservative," Gao said.

"It means respecting reality."

In an industry often dominated by ambitious announcements and aggressive expansion plans, he believes trust is built differently:

Through products that work.

Through customers who are satisfied.

Through commitments that are fulfilled.

"A company does not build its reputation through presentations," he said.

"It builds reputation when customers use the product for six months or one year and continue to trust it."

 

What Does China's Hydrogen Industry Need Most?

When asked what China’s hydrogen industry needs most to achieve long-term success, Gao highlighted three areas.

 

1. More Rational Industry Thinking

The industry should move beyond simply pursuing:

• bigger equipment;
• newer concepts;
• faster expansion.

Different technologies have different advantages.

The goal should not be a competition to eliminate every alternative pathway.

Instead, each technology should mature in the applications where it creates the greatest value.

 

2. Greater Recognition of Specialized Companies

Gao believes small and specialized companies are essential to industrial development.

The hydrogen value chain is extremely complex.

It requires innovation across:

• hydrogen production;
• storage;
• transportation;
• materials;
• testing;
• applications.

Not every innovation will come from large corporations.

Many important breakthroughs emerge from smaller companies focusing on specific problems.

 

3. More Long-Term Operational Data

The industry also needs more real-world data.

For emerging technologies, questions remain:

• How long can systems operate?
• How quickly do components degrade?
• What are lifecycle costs?
• How do technologies perform under different conditions?

The industry needs more patience to accumulate experience.

 

Looking Ahead: The Role of Small Electrolyzers in the Hydrogen Economy

Looking three to five years ahead, Gao expects China's hydrogen industry to continue expanding.

Green hydrogen economics will improve as renewable energy costs decline.

Large-scale industrial applications will continue developing.

However, he believes smaller systems will also become increasingly important.

As hydrogen expands into more areas—including:

• education;
• distributed energy;
• research;
• transportation;
• specialized applications—

flexible and modular hydrogen solutions will become increasingly valuable.

For Hydrogen Carrier, the goal remains straightforward:

Not to become the largest company.

But to become one of the most reliable companies in its field.

"We do not need to be the biggest," Gao said.

"We want to be trusted."

 

FuelCellChina Perspective

The hydrogen transition is often described through numbers:

gigawatts,

tons,

billions of investment,

kilometers of pipelines.

These numbers matter.

But behind every industrial transformation are people.

People who decide to start companies when the market is uncertain.

People who choose difficult paths instead of crowded ones.

People who focus on solving problems that receive little attention.

The story of Shandong Hydrogen Carrier represents another side of China's hydrogen development.

A side built not only on scale, but on patience.

Not only on expansion, but on engineering discipline.

Not only on ambition, but on craftsmanship.

This is exactly why FuelCellChina launched the Founder Stories series.

Beyond reporting the largest projects and biggest investments, FuelCellChina aims to discover the entrepreneurs, engineers and innovators quietly building the hydrogen ecosystem.

Because every successful industry needs both pioneers in the spotlight and hidden champions working behind the scenes.

The future of hydrogen will not be created by one company, one technology or one country alone.

It will be built by thousands of people who continue moving forward—one product, one idea and one step at a time.