China's hydrogen ambitions face high costs and infrastructure hurdles
By
Carbon Brief Staff
4d ago· 16 min readenInsight
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Summary
China has identified hydrogen as a key "future industry" for both its energy transition and industrial policy. However, despite being the world's largest producer and consumer of hydrogen, the fuel remains expensive and inefficient to produce—especially "green" hydrogen from renewables. Limited infrastructure and lack of incentives to switch from other energy sources further hinder adoption. The article examines how China's evolving industrial policy could potentially make hydrogen a viable clean-energy solution.
Key quotes
· 5 pulledChina has said that hydrogen is a key 'future industry', important to both its energy transition and its industrial policy.
Hydrogen frequently goes through hype cycles, most recently driven by rising oil and gas prices due to the conflict in the Middle East.
Even in China, the world's largest producer and consumer of the fuel, hydrogen remains expensive and inefficient to produce.
This is especially the case for 'green' hydrogen derived from renewables.
There is limited supporting infrastructure and there is little incentive to use hydrogen over o
This article examines China’s approach to developing hydrogen and how its evolving industrial policy could make the fuel viable.
