[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 reached a period of explosive growth. According to statistics from SMM, the country's monthly newly added capacity for green hydrogen-related projects exceeded 82,300 mt of green hydrogen, 2.35 million mt of green ammonia, and 2.2 million mt of green methanol, covering the entire value chain of hydrogen production, storage, transportation, and application. From Inner Mongolia to Qinghai, and from alkaline electrolyzers to PEM technology, China's green hydrogen industry is breaking through the bottleneck of large-scale development through diversified approaches, achieving benchmark applications in the transportation and industrial sectors.

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

According to SMM data, in April 2025, a total of 25 green hydrogen projects made new progress nationwide, 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 accounted for 3 projects, focusing on breakthroughs in green hydrogen production and storage technologies in high-latitude regions.

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

The logic behind regional decentralization:

Policy-driven: 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-oriented: Central and eastern provinces relied on chemical and transportation demands to drive hydrogen source support.

II. Successive Benchmark Projects: Hubei and Qinghai's "Tale of Two Cities" Pushes Technological Boundaries

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

As the first national-level hydrogen energy project in Hubei Province, the Daye Integrated Green Electricity and Green Hydrogen Production, Storage, Refueling, and Utilization Project entered an intensive commissioning phase in April:

Technological Breakthrough:

The first project in China to adopt a dual-technology approach of "alkaline + PEM proton exchange membrane electrolyzers," balancing the need for large-scale, low-cost production with rapid response capabilities.

Storage and Transportation Revolution:

Collaborating with the Institute of Rock and Soil Mechanics, Chinese Academy of Sciences, the project transformed abandoned mine tunnels into "underground hydrogen storage facilities," addressing the cost challenges of high-pressure gaseous storage and transportation.

Scenario Implementation:

- On April 11, the Daye East Integrated Energy Station was commissioned, 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 system for the entire "production-storage-refueling" chain.

Economic and Environmental Benefits:

- Annual carbon dioxide emissions reduction of 227,800 mt, equivalent to planting 1.27 million trees.

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

2. Delingha, Qinghai: World's Highest-Altitude PEM Electrolysis Hydrogen Production Project Achieves Commercial Delivery

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

Technological Breakthrough: In response to the extreme environment at an altitude of 3,000 meters with a diurnal temperature variation exceeding 30°C, a "photovoltaic-hydrogen-storage" coordinated control system was developed, reducing the electrolysis efficiency attenuation rate by 60% compared to traditional solutions.

Localisation of Equipment: Perfluorosulfonic acid proton exchange membranes were used to replace alkaline electrolyzers, achieving a hydrogen purity of 99.999% and meeting the high-end requirements of fuel cell vehicles.

Business Model Innovation: As a supporting project for the large-scale "desert-gobi-wasteland" base, green hydrogen is directly supplied to surrounding chemical industrial parks, establishing a closed loop of "wind and solar power generation - hydrogen production - chemical consumption."

III. Interpretation of Industry Trends: From "Demonstration" to "Commercialization", the Inflection Point of Green Hydrogen Economy Emerges

1. Acceleration of Diversified Technological Routes

Alkaline Electrolyzers (ALK) still dominate large-scale, low-cost scenarios (e.g., the wind and solar power-to-hydrogen project in Inner Mongolia);

PEM electrolyzers have leveraged their advantages in high precision and rapid start-stop capabilities, increasing their penetration in transportation hubs (e.g., hydrogen refueling stations in Hubei) and extreme environments (e.g., Qinghai);

Liquid hydrogen storage and transportation, as well as solid-state hydrogen storage, have entered the engineering verification stage. The "underground hydrogen storage" model in Daye may become a new direction for high-density hydrogen storage and transportation.

2. Expansion of Green Hydrogen Application Scenarios

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

Industrial Sector: The capacity of green ammonia and green methanol has surged. Among the 2.35 million mt of green ammonia capacity, 60% is earmarked for synthetic ammonia exports to the European market;

Energy Sector: Trials of injecting green hydrogen into the power grid for peak shaving have commenced. The annual power generation from green electricity in the Daye project can cover the electricity consumption of 50,000 households.

3. Dual-Driven by Policy and Capital

Policy Front: The third batch of subsidies for fuel cell city clusters is tilted towards green hydrogen production. Regions such as Inner Mongolia and Xinjiang have introduced green channels for the approval of "wind and solar power-hydrogen storage integration" projects;

Capital Front: Enterprises such as Sinopec and Guohong Hydrogen Energy are accelerating the layout of integrated wind and solar power-to-hydrogen projects. The disclosed green hydrogen investment amount for 2025 has exceeded 30 billion yuan.

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 dual engines of technological breakthroughs and scenario innovations. With nearly 60 recorded projects set to commence operation from 2026 to 2027 (with an expected total 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.