As China accelerates its ambitions in the hydrogen energy market, recent insights reveal significant advancements in the nation's production and application of green hydrogen. Reports outline a transformative leap within the sector, which is being propelled by decreasing costs, supportive government policies, and rapid technological innovations.
The focus on expanding green hydrogen usage is pivotal for China as it strives to reduce carbon emissions while reinforcing its energy security. Industry experts point out that hydrogen serves not only as a clean and emission-free energy source but also plays a vital role in energy storage.
Consultancy firm Rystad Energy has projected a positive growth trajectory for green hydrogen in China, specifically noting that the nation is significantly ramping up its electrolyzer capacity each year. This rise in capacity mirrors trends observed in the solar photovoltaic (PV) and wind industries, where China currently leads on a global scale.
Liu Shiyu, vice-president of the China Electric Power Planning and Engineering Institute, stated, “Green hydrogen, produced using renewable energy, will dominate China’s hydrogen supply in the coming decades, accounting for 90 percent by 2060 from the current negligible 0.2 percent of total production.” This marks a significant shift as China, already the world's largest hydrogen producer and consumer, produced over one-third of global hydrogen output in 2023, with figures reaching 35 million metric tons. Projections indicate that this output could nearly triple to 100 million tons by 2050.
Currently, however, a substantial portion of China's hydrogen production—80 percent—derives from fossil fuels. The remaining 20 percent comes from industrial byproducts, indicating that green hydrogen production remains in its early stages, with only about 60,000 tons produced annually as of 2023. Notably, much of the nation's hydrogen is characterised as "gray hydrogen," produced from fossil fuels without implementing carbon capture, utilisation, and storage techniques, resulting in high levels of carbon emissions. Alternatively, "blue hydrogen" incorporates processes to capture and store these emissions.
Despite these challenges, experts highlight the considerable growth potential within China's green hydrogen sector. Liu predicts that it could evolve into a flagship export industry, comparable to the country’s leading innovations in electric vehicles, solar panels, and energy storage solutions.
Guo Liejin, a professor at Xi’an Jiaotong University, underscored the importance of developing efficient, low-cost, and large-scale systems for the co-production of green hydrogen and electricity. He emphasised that China's strategic position as a hydrogen powerhouse could significantly foster sustainable development practices in this pivotal energy sector.
With a dynamic landscape in hydrogen energy and the potential for substantial innovations, the future of this industry in China appears promising, marking a critical step toward achieving global sustainability goals and reshaping energy practices both locally and internationally.
Source: Noah Wire Services