China to exceed ‘green’ hydrogen target ahead of schedule, beating rest of world combined
- Output of hydrogen made using renewable energy on track to beat a 2025 target of 200,000 tonnes, Rystad Energy report says.
China is set to surpass its national hydrogen production targets, solidifying its leading position in the global markets for electrolysers and hydrogen-powered vehicles thanks to a strong policy push, record-breaking renewable energy installations and a mature automotive supply chain.
The country, already the world’s largest producer and consumer of hydrogen, is projected to install around 2.5 gigawatts of hydrogen electrolyser capacity by the end of this year, according to a Rystad Energy report on Wednesday.
This capacity is expected to generate 220,000 tonnes of green hydrogen annually, which is 6,000 tonnes more per year than the rest of the world combined and beats a national 2025 target of 200,000 tonnes, the report said.
The projected rise in green hydrogen production would help China meet its overall demand for the gas, which is seen rising sharply after 2030 at the same time that hydrogen production using fossil fuels and industrial processes is expected to decline, according to Go Nakanishi, founder of Shanghai-based research firm Integral.
“After 2040, the green hydrogen market will start to show prominence and boom at a large scale, as the levelised cost of green hydrogen starts to become the lowest among all the production methods [in China],” he said at the International Hydrogen and Fuel Cell Vehicle Congress and Exhibition in Shanghai on Tuesday.
