Apr 30, 2025
China has set up a green hydrogen production capacity of 125,000 metric tons per year.
China plans to achieve a production capacity of 125,000 mt/year for green hydrogen, created from water electrolysis using renewable energy, by the end of 2024, as reported by the National Energy Administration (NEA) on April 30. The "China Hydrogen Industry Development Report (2025)" noted that, being the largest producer of renewable energy, China is developing a green hydrogen ecosystem to stimulate demand for renewable electricity. By 2024, the global green hydrogen production capacity is estimated to be around 250,000 mt/year, with China contributing 50% of this total.
In 2024, China initiated 35 green hydrogen projects, adding 48,000 mt to its production capacity, a 62% increase from the previous year. However, most of China's hydrogen supply still comes from coal gasification, natural gas SMR, and industrial byproducts. The country produced 36.5 million mt of hydrogen in 2024, a 3.5% increase year over year, with coal accounting for 20.7 million mt, industrial byproducts for 7.7 million mt, and natural gas for 7.6 million mt. Only 320,000 mt of hydrogen was produced via water electrolysis, a 3.6% increase.
By December 2024, China's hydrogen production cost dropped to Yuan 28/kg ($3.85/kg), a 15.6% decline. The purchasing price fell to Yuan 48.6/kg ($6.69/kg) but remained high due to significant logistics costs. The NEA emphasized the need to improve logistics for long-distance hydrogen transport.
In contrast, the U.S. and EU average electrolytic hydrogen prices were $5.2/kg and Eur6.1/kg ($6.94/kg), respectively. Concerns were raised about insufficient demand for green hydrogen causing project delays, with over 600 projects planned, but only 90 completed and 80 under construction.
Currently, most hydrogen in China is used industrially, with significant quantities for methanol and ammonia synthesis, refining, and coal chemicals. The NEA urged efforts to boost hydrogen demand in the power sector and suggested blending hydrogen with natural gas and coal for energy production. Experiments confirmed that blending up to 30% hydrogen in natural gas is feasible for a gas turbine system.
For transportation, the report mentioned existing subsidies to promote hydrogen fuel cell vehicles, with over 540 refueling stations established and around 24,000 fuel cell electric vehicles launched by 2024. NEA also aims to facilitate hydrogen trading internationally by developing trade mechanisms and standard recognition with potential partners across Europe, Southeast Asia, the Arab League, and Africa.
In 2024, China initiated 35 green hydrogen projects, adding 48,000 mt to its production capacity, a 62% increase from the previous year. However, most of China's hydrogen supply still comes from coal gasification, natural gas SMR, and industrial byproducts. The country produced 36.5 million mt of hydrogen in 2024, a 3.5% increase year over year, with coal accounting for 20.7 million mt, industrial byproducts for 7.7 million mt, and natural gas for 7.6 million mt. Only 320,000 mt of hydrogen was produced via water electrolysis, a 3.6% increase.
By December 2024, China's hydrogen production cost dropped to Yuan 28/kg ($3.85/kg), a 15.6% decline. The purchasing price fell to Yuan 48.6/kg ($6.69/kg) but remained high due to significant logistics costs. The NEA emphasized the need to improve logistics for long-distance hydrogen transport.
In contrast, the U.S. and EU average electrolytic hydrogen prices were $5.2/kg and Eur6.1/kg ($6.94/kg), respectively. Concerns were raised about insufficient demand for green hydrogen causing project delays, with over 600 projects planned, but only 90 completed and 80 under construction.
Currently, most hydrogen in China is used industrially, with significant quantities for methanol and ammonia synthesis, refining, and coal chemicals. The NEA urged efforts to boost hydrogen demand in the power sector and suggested blending hydrogen with natural gas and coal for energy production. Experiments confirmed that blending up to 30% hydrogen in natural gas is feasible for a gas turbine system.
For transportation, the report mentioned existing subsidies to promote hydrogen fuel cell vehicles, with over 540 refueling stations established and around 24,000 fuel cell electric vehicles launched by 2024. NEA also aims to facilitate hydrogen trading internationally by developing trade mechanisms and standard recognition with potential partners across Europe, Southeast Asia, the Arab League, and Africa.