Explainer | China bets big on hydrogen in pursuit of carbon neutrality benchmarks
- Hydrogen, a clean fuel source with enormous potential, is being adopted by China for numerous purposes as it attempts to fulfil its zero-emissions goals
- The fuel is generated at massive scale, but most comes from coal and natural gas, necessitating a ‘greening’ of production
To reach its carbon neutrality goals, China – the world’s largest producer of greenhouse gas emissions – has turbocharged its ambitions and marshalled tremendous resources in the battle against climate change.
One top priority in this campaign is developing its already booming hydrogen energy industry, as the clean fuel source is a promising solution for cutting carbon emissions in sectors that are difficult to electrify, such as long-distance transport.
Earlier this month, China’s first hydrogen-powered ship set out on its maiden voyage, a strong statement on the country’s aspirations to green its transport sector by any means possible.
How big is China’s hydrogen market?
China is the world’s largest hydrogen producer and consumer, mainly because of its large chemical industry and oil refining capacity.
Hydrogen production in China reached around 33 million tonnes in 2021, around 30 per cent of the world’s total output.
Li Guohui, vice-president of state-owned China Petroleum Pipeline Engineering Corporation, announced in May that by 2050, China will develop a 6,000km (3,700 miles) hydrogen pipeline network.
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Despite the increase in production, spurred partially by technological innovation cutting costs, unfilled demand is also on the rise.
