China Leads Global Hydrogen Production Surge as Industry Faces Challenges
Key Ideas
- China produced 36.5 million tons of hydrogen in 2024, making up over a third of global output, with plans to push for large-scale projects.
- Fossil fuel-based hydrogen remains dominant, but there is a growing interest in electrolysis-generated hydrogen.
- Despite the growth, challenges such as economic viability and industry standards persist, prompting increased support from Beijing for innovation and international cooperation.
- The industry is advancing towards large-scale development by increasing the number of planned renewable hydrogen projects, but faces technology and operational limitations.
China emerged as a key player in the global hydrogen market by producing over a third of the world's output in 2024, totaling 36.5 million tons. While fossil fuel-based hydrogen maintained its lead, the country showed interest in electrolysis-generated hydrogen, though the volume was relatively low. The National Energy Administration highlighted 2025 as a critical year for advancing China's hydrogen industry towards large-scale projects. Challenges identified included the need to enhance the economic feasibility of hydrogen initiatives and establish industry standards. To address these hurdles, Deputy Director General Xu Jilin from the Department of Energy Conservation and Science and Technology Equipment announced Beijing's plans to intensify support for innovation and international collaborations in the upcoming five years. Despite a rapid increase in planned renewable hydrogen projects, technological and operational shortcomings hindered progress, leading to sluggish implementation and limited exploration of potential applications.