S'abonner

China Mobilizes 49% of Global Green Hydrogen Capacity in 2023

China announces an ambitious plan for green hydrogen, aiming to boost local production. This project, representing nearly half of global capacities, faces critical challenges related to purchase agreements.

Share:

Green hydrogen in China receives decisive support with an official government announcement in December 2023. The plan, developed by the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission, and the National Energy Administration, aims to integrate hydrogen into industrial sectors to significantly reduce emissions.

The strategy also includes the development of carbon-neutral fuels such as green methanol and ammonia. These initiatives aim to address the needs of hard-to-decarbonize industries while enhancing energy autonomy.

Persistent Challenges for Producers

Despite clear objectives, the implementation of this strategy is hindered by the lack of structured purchase agreements. Data from Commodity Insights shows that China holds 49.57% of global green hydrogen production capacity under construction for 2023/2024. However, only a few major facilities achieve purchase coverage above 80%, a key criterion for obtaining bank financing.

Most projects are expected to supply the domestic market, particularly for transportation and marine fuels, thereby limiting exports. This lack of official agreements also complicates the international positioning of Chinese producers.

Active Support for Local Markets

At the same time, the Chinese government is encouraging the use of ammonia in coal-fired power plants, creating local demand for green hydrogen. According to Anri Nakamura, Principal Analyst at S&P Global Hydrogen, these measures target high-emission sectors and promise significant environmental benefits. However, their success will depend on the state’s ability to balance subsidies and economic viability.

Remarkable Technological Leadership

China remains the global leader in renewable energy installations and electrolyzer development. Yet, demand for these technologies falls short of expectations due to technical and financial challenges.

This new plan reflects China’s ambition to consolidate its dominant position while reducing its carbon footprint. Its success will depend on effective coordination among producers, policymakers, and investors.

  • Populaires ​
bp sells its US onshore wind assets to LS Power as part of divestment strategy
UK and Czech Republic sign agreement to accelerate civil nuclear development
Kairos Power completes installation of third prototype vessel in Oak Ridge
Georgia Power receives approval for 8,500 MW energy growth plan by 2030
Kem One and EDF sign agreement for 10-year electricity supply contract
HyCC secures Dutch subsidy for its 90 MW H2eron hydrogen project
The Dutch government has granted major funding to HyCC for its H2eron electrolysis project, aimed at producing renewable hydrogen in the Delfzijl industrial zone.
Saudi Arabia signs agreements to export green hydrogen and electricity to Europe
ACWA Power has signed several agreements with European partners to develop a green energy export chain between Saudi Arabia and Europe, as part of the India-Middle East-Europe Economic Corridor project.
Stellantis ends its hydrogen van programme as market outlook remains limited
Manufacturer Stellantis halts production of its hydrogen-powered commercial vehicles, citing a lack of commercial prospects and an insufficient market, according to a statement released by the automotive group.
TNB, Petronas and Terengganu Inc launch green hydrogen hub and hybrid solar in Malaysia
Malaysia reaches a decisive milestone in its energy roadmap with the launch of a hybrid floating hydro-solar project and the first large-scale green hydrogen hub in the state of Terengganu.
Hynamics UK and Hy24 join forces for £300mn green hydrogen project in Fawley
Hynamics UK and Hy24 have signed an exclusive agreement to develop the Fawley Green Hydrogen project, backed by the UK HAR2 scheme, to supply green hydrogen to ExxonMobil's petrochemical complex.
China: Green Light for First Interprovincial Hydrogen Pipeline
China has approved the construction of a strategic pipeline to transport green hydrogen from Inner Mongolia to Beijing, facilitating supply to industrial zones around the capital and boosting a rapidly expanding energy economy.
The European Commission sets regulatory framework for low-carbon hydrogen
The European Commission introduces a greenhouse gas emissions methodology for low-carbon hydrogen, establishing a long-awaited regulatory framework for the sector and paving the way for new industrial investments.
Lhyfe successfully completes first green hydrogen combustion tests in Spain
French company Lhyfe has carried out its first successful green hydrogen combustion tests in Spain, delivering three tonnes over three weeks to the Valencian ceramic industry, opening a new potential alternative to industrial fossil natural gas.
Envision inaugurates the world’s largest green ammonia plant in China
Envision announces the official commissioning of the world's largest green hydrogen and ammonia plant in China, powered by an autonomous renewable energy system and entirely AI-driven, with exports planned from late 2025.
Sumitomo invests in Independence Hydrogen to accelerate production in the United States
Sumitomo Corporation announces a strategic investment in Independence Hydrogen aimed at developing new decentralized hydrogen production and distribution projects in the United States, targeting industrial, logistics and critical infrastructure sectors.
80 Mile increases its stake in Hydrogen Valley to 49% and signs an agreement with Tecnoparco
80 Mile announces that it has increased its stake in Hydrogen Valley to 49% and signed a memorandum of understanding with Tecnoparco for the supply of 40,000 tonnes of biofuel per year, aiming to reduce palm oil dependency.
Green ammonia: South Africa moves to execution phase of its largest project
The Hive Coega project, South Africa’s most ambitious green ammonia initiative, enters its operational phase with the release of tenders for essential infrastructure, marking a major step forward for the country in renewable energy production.
France: Court Approves Sale of McPhy to John Cockerill Hydrogen
The Belfort commercial court has approved the sale of McPhy to John Cockerill Hydrogen, a €600,000 transaction involving majority retention of staff and an industrial project partially funded by European subsidies.
Fresno joins First Public Hydrogen to develop municipal energy capacities
The City of Fresno becomes the latest member of First Public Hydrogen, the first US public authority dedicated to hydrogen development, thus strengthening its energy infrastructure and municipal bus fleet.
Natural hydrogen: France on the verge of redefining its national and European energy strategy
The official confirmation in June 2025 by the French government regarding the detection of significant natural hydrogen reserves in Lorraine, the Pyrenees, and Aquitaine could represent a major strategic turning point for national and European energy sovereignty. However, the technical, economic, and environmental challenges associated with its exploitation might slow its large-scale implementation.
Stanwell withdraws from CQ-H2 hydrogen project in Australia, impact on the sector
Stanwell announces the end of its participation in the Central Queensland Hydrogen Project, a major international hydrogen production initiative, raising questions about the sector's outlook in the region.
Lhyfe obtains the first European RFNBO certification for green hydrogen in France
Lhyfe becomes the first French producer to obtain European RFNBO certification, delivering the first batches of certified hydrogen and opening access to new support mechanisms for the industrial sector.
Finland: TES and CPC launch 500 MW e-NG project
Tree Energy Solutions and CPC Finland will produce 125,000 tonnes annually of e-NG at the Finnish port of Rauma, targeting European and international markets with a significant investment.
EU funds €3.5mn cross-border hydrogen infrastructure project
The European Commission grants €3.5mn to support preparatory work for a Franco-German cross-border network aimed at transporting hydrogen between the Grand Est region and Baden-Württemberg starting in 2029.
McPhy Energy faces judicial liquidation after reviewing submitted offers
French company McPhy Energy awaits a court decision regarding offers submitted during its judicial reorganization, paving the way for probable liquidation and potential delisting of its shares.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING