China is making a big bet on green hydrogen that could make or break a fuel long-touted as holding the keys to the global energy transition.
The stakes are substantial. China has more than tripled its annual operational capacity since the end of 2024, and now hosts nearly 250,000 tons — over twice that of the rest of the world combined, according to BloombergNEF. Beijing’s latest five-year plan calls for an eightfold increase to 2 million tons a year by the end of the decade.
China is outstripping rivals that have seen major projects shelved due to ballooning costs and anemic demand. Its success hinges on two distinct advantages over places like India and Europe: a massive industrial base that’s proving tough to decarbonize, and a surplus of clean energy that needs to find a home.
“China is making a strategic bet on renewable hydrogen as a way to carry clean electricity into the sectors electrification struggles to reach,” said Muyi Yang, a Sydney-based analyst at energy think tank Ember.
