China is striving to make hydrogen a key component of its low-carbon energy transition strategy.

Its national plan aims to produce 200,000 tons of green hydrogen annually by the end of 2025, a goal that is likely to be achieved early. Expectations indicate that China will produce 220 thousand tons by the end of this year.

China is strengthening its position as a global leader in the field of electrolysis technology. It will install 1 gigawatt of electrolysis capacity in 2023.

Rystad Energy expects to install approximately 2.5 gigawatts by the end of this year, which will produce 220,000 tons of green hydrogen annually, more than half of global production combined.

China’s ambition to achieve carbon neutrality is challenged by its heavy reliance on gray hydrogen, produced through coal gasification or steam reforming of methane.

Achieving carbon neutrality goals requires moving to low-carbon hydrogen production methods, such as green hydrogen.

The “Medium and Long-Term Strategy for Hydrogen Energy Industry Development”, released by the National Development and Reform Commission in 2022, provides a comprehensive roadmap for hydrogen targets until 2035.

The plan includes strategies to expand the hydrogen pipeline network; Sinopec is developing a 400-km pipeline linking Inner Mongolia to Beijing, while Tangshan Haitai New Energy Technology Company is developing a 737-km pipeline, which will be the world’s longest hydrogen pipeline when completed.

China has enormous potential in the field of solar and wind energy, especially in the northern and northwestern regions. This is a great advantage for hydrogen projects.

The country’s solar PV capacity rose to 217 gigawatts in 2023, while wind power capacity doubled to 76 gigawatts.

This has led to several provinces announcing ambitious targets for hydrogen production, such as Inner Mongolia, which aims for 480,000 tons per year, and Gansu, which aims for 200,000 tons per year.

China’s ambition faces challenges, most notably ensuring that electrolysis facilities operate at full capacity. Producing 1 million tons of green hydrogen annually requires approximately 20 gigawatts of onshore wind energy; this creates competition with other electricity needs in the country.