China Aims to Produce 200,000 Tonnes of Green Hydrogen Annually by 2025

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The National Development and Reform Commission (NDRC) of China has come up with a target to manufacture 200,000 tonnes of green hydrogen annually by 2025. The NDRC has said in its press statement that China will have widespread industrial use of the clean fuel in the long run.

NDRC is the top economic planning body of the country. It has also mentioned in the statement that by 2025, the country aims to have 50,000 vehicles running on hydrogen.

Green hydrogen is manufactured using renewable sources of energy like wind, solar and hydro sources of power by breaking down water into oxygen and hydrogen using electrolysis.

Wang Xiang, NDRC Deputy Director, High Technology Department, said during the media brief, “Development of hydrogen is an important move for energy transition and a great support for China’s carbon peak and carbon neutrality goals.” At present, China produces about 33 million tonnes of hydrogen annually but the share of non-green hydrogen is about 80 per cent. There is no official data offered by NDRC about the present capacity of China’s green hydrogen output.

Wang Xiang added that the potential of green hydrogen in China is huge because the country has the largest renewable power capacity in the world as of now. Energy Iceberg founder Yuki Yu said that many in the hydrogen industry seem to agree that the green hydrogen production target of China is slightly conservative but the new plan sends a positive signal to the widespread market and also outlines the commercial potential of green hydrogen.

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The NDRC statement reveals that China plans to establish a complete hydrogen industry that delves in transportation, storage and industrial segments. The authority says China wants to raise the share of green hydrogen in the energy consumption of China by 2035.

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The key obstacle in widespread deployment of green hydrogen in the Chinese economy is the high cost attached with the fuel. There will be tough competition from diesel and gasoline. Hence, NDRC says that to avoid disorderly competition, there has to be a rational establishment of hydrogen projects based on market demand and resources.

Wang Xiang added, “Local government will be strictly forbidden from blindly follow the trend of hydrogen project construction and will be prevented from building low-end projects in order to avoid a waste of resources.”

China is the largest greenhouse gases’ emitter in the world. According to Energy Iceberg, China is producing about 27,000 tonnes of green hydrogen every year at present. The China Hydrogen Alliance says that hydrogen demand in China is expected to reach 35 million tonnes by 2030 and 60 million tonnes by 2050. At present, more than 120 green hydrogen projects are being developed in China and all provinces of the country have plans to develop a hydrogen economy.