Beijing's Bold Move: Boosting Low-Carbon Hydrogen for a Greener Future
Key Ideas
- Beijing is accelerating the use of low-carbon hydrogen to reduce emissions in the industrial sector, with a focus on green methanol and ammonia production.
- China's new policy push includes plans for hydrogen fuel cell vehicles, hydrogen-powered ships, aircraft, and locomotives by 2027.
- The Energy Law reclassifying hydrogen as an energy resource is expected to drive investment and less restrictive regulations in China's hydrogen sector.
- China aims to become a major exporter of green hydrogen due to its significant capacity and low production costs, amidst growing competition in the global hydrogen market.
Beijing has unveiled a plan to accelerate the use of low-carbon hydrogen in China's industrial sector as part of a national decarbonisation push. The plan encourages refiners and chemical companies to increase their use of hydrogen to reduce emissions and invest in research for green methanol and ammonia. Additionally, the plan promotes the deployment of hydrogen fuel cell vehicles and the development of hydrogen-powered ships, aircraft, and locomotives. China's Energy Law, which came into force recently, reclassifies hydrogen as an energy resource, paving the way for increased investment and less restrictive regulations in the hydrogen sector. China, being the world's largest producer of green hydrogen, is poised to become a significant exporter due to its low production costs. However, the geopolitical landscape is becoming competitive, with the EU imposing restrictions on Chinese-made equipment for green hydrogen projects. Despite challenges, the future looks promising for low-carbon hydrogen in China and Asia, with significant investments expected in infrastructure and production capacity.