China's Green Hydrogen Dominance: Manufacturing and Capacity Expansion
Key Ideas
  • China leads in green hydrogen projects and electrolyser manufacturing, accounting for 40% of new low-emission hydrogen projects.
  • The country's expertise in clean energy technologies is bolstered by its 60% share of global electrolyser manufacturing capacity.
  • Global electrolyser capacity receiving financial backing reached 20GW, with potential to increase low-emission hydrogen output five-fold by 2030.
  • Policies supporting demand creation are crucial for the proliferation of low-emission hydrogen projects globally.
China stands at the forefront of green hydrogen initiatives, with a significant share of new low-emission hydrogen projects and dominance in electrolyser manufacturing, as per an IEA report. The nation is rapidly expanding its capacity for electrolysers, crucial for producing low-emission hydrogen from renewable energy sources. China's manufacturing prowess in clean energy technologies, including electrolysers, is evidenced by its 60% share of global manufacturing capacity. The report highlighted that the total electrolyser capacity receiving financial backing globally could potentially increase low-emission hydrogen output by five-fold by 2030. Despite the positive momentum, the biggest challenge remains high electrolyser costs. The IEA emphasized the need for supportive policies to bridge the cost gap with fossil fuel-based hydrogen. Furthermore, government goals for low-emission hydrogen production significantly exceed the current demand, highlighting the importance of policies to stimulate demand. Some countries have already implemented measures such as mandatory blended sustainable fuel use in aviation and shipping to boost demand. The report underscores the necessity for policymakers to align strategies to promote the growth of low-emission hydrogen projects and meet global emission reduction targets.
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