Beijing Sets Green Hydrogen Goal, Eyes Widespread Use

Beijing on Wednesday announced a target to produce up to 200,000 tonnes per year of carbon-free green hydrogen by 2025.

The mainland also aims to have about 50,000 hydrogen-fuelled vehicles by that year, the National Development and Reform Commission (NDRC) said in a statement.

As the world's largest emitter of greenhouse gases, China has been striving to balance energy security with its climate change goals, and is looking to hydrogen to help reduce carbon emissions from transportation and industry.

Green hydrogen is produced by breaking down water using electrolysis powered by renewable energy sources. Producing hydrogen using natural gas or coal releases carbon emissions while using renewables such as solar and wind power does not.

"Development of hydrogen is an important move for energy transition and a great support for China's carbon peak and carbon neutrality goals," said Wang Xiang, deputy director of the High Technology Department at the NDRC, at a media briefing.

China currently produces 33 million tonnes of hydrogen a year, about 80 percent of it generated using coal and natural gas, the rest mainly a by-product from industrial sectors, according to the government.

The official data did not disclose China's green hydrogen output. Chinese Clean Power Policy and Market Insights (Energy Iceberg), a consultancy, estimates that the country's current green hydrogen production stands at just under 27,000 tonnes per annum.

The NDRC's Wang said that even though most of China's hydrogen is produced from fossil fuels, the potential of green hydrogen is huge since the country has the world's largest renewable power capacity.

"Many in the hydrogen industry seem to agree that the green hydrogen production target is slightly conservative," said Yuki Yu, founder of Energy Iceberg, but added that the plan sends a positive signal to the market and outlined the commercial potential of green hydrogen.

The NDRC statement also said that China aims to establish a comprehensive hydrogen industry spanning transportation, energy storage and industrial sectors and "significantly improve" the portion of green hydrogen in China's energy consumption by 2035. (Reuters)