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China’s National Energy Administration has reported significant growth in the country’s green hydrogen industry, highlighting a surge in operational capacity and ongoing construction that signals a robust future for this renewable energy source. As of now, China has more than 250,000 metric tonnes per year of operational green hydrogen capacity, a figure that has more than doubled since the end of 2024. Additionally, over 900,000 metric tonnes per year are currently under active construction.
The Northeast region of China is leading the way, contributing 45.7 percent of the total operational capacity from water electrolysis projects. North China follows with 30 percent, and the Northwest accounts for 21.8 percent, while all other regions collectively represent roughly 2.5 percent. Notably, Jilin and Inner Mongolia are standout provinces, with Jilin exceeding 90,000 metric tonnes per year and Inner Mongolia surpassing 80,000 metric tonnes. Both regions benefit from abundant renewable energy resources, particularly wind, which makes electrolysis-based hydrogen production economically viable.
Current operational projects are relatively modest in scale, averaging about 4,900 metric tonnes per year, with over half of the sites operating below 1,000 metric tonnes. In contrast, the ongoing construction projects average significantly larger capacities of around 13,000 metric tonnes per year. Approximately 38 percent of the projects in development are expected to exceed 10,000 metric tonnes annually, with several sites in Xinjiang, Inner Mongolia, and Jilin already breaking ground for projects rated at 50,000 metric tonnes or more.
China’s approach to hydrogen production is taking two distinct forms. The first involves directly linking electrolysers to renewable energy sources for decarbonizing industrial processes such as oil refining and mining. The second model focuses on using green hydrogen to produce ammonia and methanol at scale, facilitating easier storage and transport compared to hydrogen itself. This transition is crucial for integrating renewable hydrogen into existing industrial frameworks.
The expansion of China’s hydrogen industry is driven by strategic policies outlined in the 14th Five-Year Plan, which emphasizes renewable hydrogen production, and the ongoing 15th Five-Year Plan, targeting regional self-sufficiency in clean hydrogen by 2030. The current construction wave is expected to significantly increase capacity, far exceeding the total built and operational to date, positioning China as a leader in the global hydrogen market.
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