Can China Lead the Global Hydrogen Energy Race?

China is poised to transform its energy landscape with a new policy directive aimed at bolstering the development of low-carbon hydrogen. This significant move, announced by the Ministry of Industry and Information Technology (MIIT) alongside other government agencies, will see increased use of hydrogen across industrial sectors by 2025. Analysts suggest this marks a pivotal step in the nation’s broader decarbonization agenda as China positions itself as a leader in clean energy innovation.

“We think the potential of hydrogen in the industrial sector has been confirmed,” said Wu Jiaxiong, an analyst at BOCI Securities. With the new policy framework, hydrogen-related projects are anticipated to enjoy greater financial backing, streamlined approvals, and operational support.

Hydrogen News Key Highlights:

• Beijing has unveiled a policy to accelerate the use of low-carbon hydrogen as part of its national decarbonization strategy.
• The industrial sector is a key focus, with refiners and chemical companies directed to integrate hydrogen into their production processes to lower emissions.
• The policy also promotes research and development of hydrogen-derived fuels like green methanol and green ammonia for use in power generation and transportation.
• Hydrogen applications are expanding to include fuel cell vehicles, hydrogen-powered ships, aircraft, and locomotives.
• By 2027, industries are expected to show measurable progress in adopting low-carbon hydrogen technologies.
• China’s Energy Law reclassifies hydrogen as an energy resource, reducing regulatory barriers to its production, storage, and use.
• The new legislation encourages greater investment in hydrogen infrastructure and domestic production facilities.
• China leads globally in green hydrogen, with nearly 7 GW of installed capacity in 2023, and it has positioned itself as a potential low-cost exporter.
• Regional rivals like Japan and South Korea are also investing in hydrogen, while the EU has introduced restrictions on Chinese electrolyser components for subsidized projects.
• The policy aims to drive innovation in decarbonization for hard-to-abate industries like steelmaking, shipping, and aviation.
• Immediate applications include hydrogen fuel cell vehicles and piloting hydrogen-based systems in industries.
• Progress is expected by 2027, with hydrogen becoming a major energy resource by the 2030s.