China's Leading Role in Green Hydrogen: Ambitions, Challenges, and Infrastructure Development
Key Ideas
  • China aims to produce 220,000 tonnes per annum of green hydrogen, surpassing global combined production by 6 ktpa, with plans to install 2.5 GW of electrolyser capacity by the end of the year.
  • The country's hydrogen strategy aligns with climate goals of peak emissions by 2030 and carbon neutrality by 2060, emphasizing the shift to low-carbon hydrogen production methods.
  • Challenges include the need for clearer standards aligned with global best practices, geographical disparities in resource distribution, and ensuring full capacity operation of electrolyzer installations.
  • China's future in green hydrogen looks promising, with forecasts indicating continued growth in green hydrogen production capacity, positioning the country as a world leader in this sector by 2030.
China has identified hydrogen as a crucial element in its low-carbon energy transition strategy, aiming to become a global leader in green hydrogen production. By the end of the year, China plans to install 2.5 GW of electrolyser capacity to produce 220,000 tonnes per annum of green hydrogen, outstripping the rest of the world's combined production. Despite the current reliance on 'gray' hydrogen sources like coal gasification, China is committed to transitioning to low-carbon methods to achieve its climate goals. The country's 'Medium- and Long-Term Strategy for the Development of the Hydrogen Energy Industry' outlines objectives from 2021 to 2035 and highlights China's rapid progress in meeting these goals. Challenges include the need for clearer standards, geographical disparities in resource distribution, and ensuring optimal operation of electrolyzer installations. Notable infrastructure projects, such as long-distance hydrogen pipelines, are in development to link production centers to demand areas. Despite challenges, Rystad Energy forecasts significant growth in China's green hydrogen production, with the country set to dominate the market by 2030 through continued capacity installations and advancements in the green hydrogen sector.
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