- China’s green hydrogen sector drives innovation with world-leading electrotech, abundant renewable energy resources, and strong industrial demand across petrochemicals, chemicals, metallurgy, and construction materials.
- Domestic policy support and continuous innovation strengthen China’s green hydrogen market, positioning the country as a global leader in clean-energy molecules.
China is rapidly shaping the global competitiveness of green hydrogen and related green molecules. It now stands as the only fully integrated hydrogen economy, despite some observers outside Asia misunderstanding it. Moreover, its rapid progress attracts attention across the Asia-Pacific and beyond.
Yuki Yu from the Hong Kong-based consultancy Energy Iceberg shared key insights at gasworld’s Asia-Pacific Industrial Gas Conference 2025. She highlighted China’s fast-growing green hydrogen sector and presented striking figures. Energy Iceberg’s research indicates that China is currently developing more than 900 green hydrogen projects. Of these, roughly 650 are actively advancing, while over 200 original equipment manufacturers (OEMs) of electrolysers operate nationwide. Additionally, more than 320 Chinese developers are participating in the green hydrogen market, and over 100 electrofuels projects are progressing simultaneously.
Yu stressed, however, that reaching maturity does not guarantee complete success. Although domestic demand exists, China still lacks enough downstream offtake agreements. “Downstream offtake remains critical to delivering the success of China’s green hydrogen and green fuels ambitions,” she said. Domestic policies stimulate some consumption, yet execution remains uncertain because international mechanisms to drive demand from Europe and the United States have fallen short.
Consequently, scaling green hydrogen and green fuels remains difficult without stronger policy signals or significant cost reductions. State-level incentives may encourage more demand from heavy industry and emerging decarbonising technologies. Yet, international demand still lags. Therefore, China must reach a tipping point before large-scale adoption accelerates, and project timelines may extend into the 2040s.
Across the Asia-Pacific region, this reality necessitates that countries and investors reassess their approach to green hydrogen opportunities. Despite these challenges, China’s leadership demonstrates that strategic investment, aligned policies, and industrial expertise can establish green hydrogen as a cornerstone of the region’s clean energy transition. With collaboration and innovation, the sector can achieve a meaningful impact on global emissions and energy sustainability.