China’s hydrogen industry is moving from pilot projects toward large-scale commercial use, driven by advances in green hydrogen technology, industrial applications, and supportive government policies.

In Xinjiang, the Sinopec Kuqa Green Hydrogen Pilot Project uses solar power to produce hydrogen through water electrolysis, supplying green hydrogen to a nearby refinery and replacing natural gas in oil refining. At full capacity, the project could reduce carbon dioxide emissions by about 485,000 tonnes annually.

Hydrogen is also gaining ground in steelmaking, transportation and energy. In Shandong, a pure hydrogen shaft furnace has demonstrated the production of high-purity iron while significantly reducing harmful emissions.

China’s hydrogen fuel-cell sector has expanded rapidly. By the end of 2025, nearly 40,000 hydrogen fuel-cell vehicles had been sold, while 574 hydrogen refuelling stations had been built nationwide. Green hydrogen production capacity had reached about 250,000 tonnes.

The government has identified hydrogen as a key future industry under the 15th Five-Year Plan (2026–2030), including it in the country’s non-fossil energy system and targeting 2 million tonnes of renewable-energy-based hydrogen production.

its progress, the industry still faces challenges, including high production costs, limited economic viability, and incomplete market and pricing mechanisms. Continued technological innovation and falling renewable-energy costs are expected to improve competitiveness and accelerate hydrogen’s commercial development in China.

Source: People’s Daily