[SMM Analysis] China's Green Hydrogen Industry Grows Steadily: New Capacity Exceeds 3 Million mt in April, Accelerating Implementation of Multiple Technology Routes and Scenario Applications

Introduction

In April 2025, China's green hydrogen industry experienced a period of explosive growth. According to SMM statistics, the monthly new capacity of green hydrogen-related projects nationwide exceeded 82,300 mt of green hydrogen, 2.35 million mt of green ammonia, and 2.2 million mt of green alcohol, covering the entire industry chain from hydrogen production, storage, and transportation to application. From Inner Mongolia to Qinghai, and from alkaline electrolyzers to PEM technology, China's green hydrogen industry is breaking through the bottleneck of scale through diversified paths and achieving benchmark applications in the transportation and industrial sectors.

I. Green Hydrogen Projects "Blossoming in Multiple Locations": New Investments in April Exceeded 100 Billion Yuan, Regional Layout Breaks Concentration

According to SMM data, 25 green hydrogen projects made new progress nationwide in April 2025, with a total investment scale expected to exceed 100 billion yuan. The project distribution exhibited a "decentralized" characteristic:

Inner Mongolia led with 6 projects, leveraging its wind and solar power resources to establish integrated wind and solar power hydrogen production bases;

Xinjiang, Heilongjiang, and Jilin each had 3 projects, focusing on breakthroughs in green hydrogen production and storage technologies in cold regions;

Central and eastern provinces such as Hubei, Hebei, and Henan entered the market through a "hydrogen-storage-heat" multi-energy complementary model.

The Logic Behind Regional Decentralization

Policy Drive: Local governments included green hydrogen as a standard in "zero-carbon industrial parks," reducing the threshold for wind and solar power ratios through subsidies;

Resource Adaptation: High latitude and high altitude regions explored hydrogen production technologies in extreme environments, with Inner Mongolia and Qinghai becoming technology testing grounds;

Market Orientation: Central and eastern provinces leveraged chemical and transportation demands to drive hydrogen source support.

II. Benchmark Projects Launched: Hubei and Qinghai's "Tale of Two Cities" Pushes the Technological Ceiling

1. Daye, Hubei: China's First National-Level "Hydrogen Entire Industry Chain" Model

As Hubei Province's first national-level hydrogen project, the Daye Green Electricity and Green Hydrogen Production, Storage, and Application Integrated Project entered a period of intensive operation in April:

Technological Breakthrough: The first domestic case to adopt a dual-technology route of "alkaline + PEM proton exchange membrane electrolyzers," balancing large-scale low cost and rapid response needs;

Storage and Transportation Revolution: Collaborated with the Chinese Academy of Sciences' Institute of Rock and Soil Mechanics to transform abandoned mine caves into "underground hydrogen storage," solving the cost problem of high-pressure gaseous storage and transportation;

Scenario Implementation

: On April 11, the Daye East Comprehensive Energy Station was put into use, with a daily hydrogen refueling capacity of 7 mt;

On April 18, 12 hydrogen-powered buses were put into operation, with supporting hydrogen refueling stations achieving a closed-loop of "production-storage-refueling" across the entire chain.

​​Economic and Environmental Benefits​​:

Annual CO2 emissions reduction of 227,800 mt, equivalent to planting 1.27 million trees;

Annual green electricity generation of 400 million kWh, green hydrogen capacity of 5,000 mt, and oxygen by-product of 40,000 mt.

​​2. Delingha, Qinghai: The World's Highest Altitude PEM Electrolytic Hydrogen Production Project Achieves Commercial Delivery ​​

The Delingha PEM Water Electrolysis Hydrogen Production Demonstration Project, constructed by China Huadian, completed its first delivery of green hydrogen on April 27, setting three world records:

​​Technological Breakthrough​​: Developed a "solar-hydrogen-storage" coordinated control system to address extreme conditions at an altitude of 3,000 meters with a day-night temperature difference exceeding 30°C, reducing electrolytic efficiency decay rate by 60% compared to traditional solutions;

​​Equipment Localisation​​: Adopted perfluorosulfonic acid proton exchange membranes to replace alkaline electrolyzers, achieving hydrogen purity of 99.999%, meeting high-end requirements for fuel cell vehicles;

​​Commercial Model Innovation​​: As a supporting project for the "Shagehuang" mega-base, green hydrogen is directly supplied to surrounding chemical parks, creating a closed-loop system of "wind and solar power generation-hydrogen production-chemical consumption."

III. Industry Trend Analysis: From "Demonstration" to "Commercialization," the Economic Turning Point of Green Hydrogen Becomes Evident​​

​​1. Diversification of Technological Routes Accelerates ​​

​​Alkaline Electrolyzers​​ (ALK) continue to dominate large-scale, low-cost scenarios (e.g., Inner Mongolia wind and solar hydrogen production projects);

​​PEM Electrolyzers​​, with breakthroughs in high precision and rapid start-stop advantages, are gaining penetration in transportation hubs (e.g., hydrogen refueling stations in Hubei) and extreme environments (e.g., Qinghai);

​​Liquid Storage and Transportation, Solid-State Hydrogen Storage​​ have entered the engineering verification stage, with the Daye "underground hydrogen storage" model potentially becoming a new direction for high-density storage and transportation.

​​2. Expansion of Green Hydrogen Application Scenarios ​​

​​Transportation Sector​​: Hydrogen-powered buses and heavy trucks are accelerating the replacement of diesel vehicles, with 12 new hydrogen-powered buses and 200 heavy truck orders added in April;

​​Industrial Sector​​: Green ammonia and green methanol capacity are surging, with 2.35 million mt of green ammonia capacity, 60% of which is locked for synthetic ammonia exports to the European market;

​​Energy Sector​​: Green hydrogen blending into power grid peak shaving pilot projects have been launched, with the Daye project’s annual green electricity generation capable of covering the electricity needs of 50,000 households.

​​3. Dual Drivers of Policy and Capital ​​

​​Policy Side​​: The third batch of fuel cell city cluster subsidies is tilted towards green hydrogen production, with regions like Inner Mongolia and Xinjiang introducing green channels for "wind-solar-hydrogen-storage integration" approvals;

​​Capital Side​​: Enterprises such as Sinopec and Guohong Hydrogen Energy are accelerating the deployment of wind-solar hydrogen production integrated projects, with disclosed green hydrogen investment exceeding 30 billion yuan by 2025.

Conclusion​​

From Hubei's "national model of the entire industry chain" to Qinghai's "PEM project at the highest global altitude," China's green hydrogen industry is breaking through the bottleneck of large-scale application with the dual engines of technological breakthroughs and scenario innovations. With nearly 60 filed projects set to commence operation in 2026-2027 (with a total expected capacity exceeding 500,000 mt/year), green hydrogen may spark a new round of substitution revolutions in the chemical, transportation, and ESS sectors, becoming a core pillar of the new-type energy system.