China's Push for Low-Carbon Hydrogen Production
Key Ideas
  • China is focusing on boosting low-carbon hydrogen production to meet ambitious emissions targets.
  • Renewable hydrogen remains a small portion of the country's total hydrogen output, highlighting room for growth.
  • The transportation sector is expected to become the second-largest user of hydrogen in China.
  • Despite concerns about unfair competition, China's hydrogen production is projected to experience significant year-on-year growth.
China is intensifying its efforts to increase low-carbon hydrogen production as part of its strategy to achieve ambitious emissions targets. While there has been a steady rise in hydrogen production and demand in the country, renewable hydrogen, crucial for decarbonizing hard-to-abate industries, currently makes up less than 2% of the total output. China has set targets to peak carbon emissions by 2030 and attain carbon neutrality by 2060, driving the push towards cleaner energy sources. The transportation sector is poised to play a significant role in the adoption of hydrogen, projected to become the second-largest user in the country. As China's hydrogen industry evolves, there are trade tensions, with the EU expressing concerns about unfair competition. However, despite challenges, the outlook for hydrogen production in China looks promising. Projections indicate that by 2023, China's hydrogen production could reach 37 million tonnes, representing a 4.5% year-on-year growth. This growth trajectory signifies the increasing importance and potential of hydrogen in China's energy landscape. For more in-depth analysis and insights into the commodity market, industry professionals can engage with ICIS for reliable data, market views, and analytics. By leveraging expert networks, ICIS offers support for strategic decision-making in today's transactions and future planning.
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