Norwegian energy research company Rystad Energy has raised its forecast for China’s hydrogen electrolysis capacity by the end of 2024, indicating it could potentially reach 2.5 gigawatts.

This increase indicates that China may reach its goal of producing 200,000 tons of green hydrogen annually by 2025, a full year ahead of schedule, which is a huge step towards achieving its climate goals.

China installed 1 gigawatt of electrolysis capacity in 2023,making it a global leader in adopting this technology. This increase is largely due to the national hydrogen strategy launched by China in 2022, which aims to achieve carbon neutrality by 2060.

Green hydrogen, which is produced using renewable energy sourcessuch as wind and solar energy, is a key component of China’s plans to achieve its climate goals. Its production does not result in any carbon emissions, making it a clean alternative to fossil fuels.

The northern and western regions of China have enormous potential for generating wind and solar energy, making them ideal locations for green hydrogen production. Several provinces in these regions, such as Inner Mongolia and Gansu, have announced ambitious targets for green hydrogen production in the coming years.

The development of China’s green hydrogen sector faces some challenges, including the need for hydrogen transportation and storage infrastructureand clear and strict definitions of “green hydrogen” and “low-carbon hydrogen.”

China is working to address these challenges by investing in hydrogen pipeline projects and developing local standards that are consistent with international best practices.