[SMM Hydrogen Energy Policy Update] National Energy Administration: China's Hydrogen Energy Development - Moving from Pilot Exploration to a New Phase of Orderly Breakthroughs

Recently, the National Energy Administration released the China Hydrogen Energy Development Report (2025), stating that "China's hydrogen energy industry is gradually transitioning from pilot exploration to a new phase of orderly breakthroughs." The report systematically summarizes the development trends of hydrogen energy at home and abroad in 2024 from six aspects: policy formulation, market size, price levels, innovative applications, international cooperation, and standard certification. It also proposes relevant work deployments in areas such as policy coordination, technological breakthroughs, public services, pilot promotion, and international exploration, laying a solid foundation for enhancing the quality and speed of the hydrogen energy industry during the "15th Five-Year Plan" period.

I. Collaborative Progress Between Top-Level Design and Local Practices

(I) National Guidance in Building the Framework for Industrial Development

Hydrogen energy was officially included in the Energy Law of the People's Republic of China, clarifying its legal positioning to "actively and orderly promote the development and utilization of hydrogen energy." The central government has listed it as a key development direction for cutting-edge and emerging industries. The Opinions on Accelerating the Comprehensive Green Transformation of Economic and Social Development propose work requirements for advancing the development of the entire hydrogen energy "production, storage, transportation, and utilization" chain. In 2024, 22 provincial-level administrative regions included hydrogen energy in their government work reports, with a cumulative total of over 560 special policies issued across various regions, gradually creating a policy closed-loop of "national coordination—local implementation—market-driven development."

(II) Achieving Global Leadership in Industrial Scale

According to the Report, in 2024, China's hydrogen energy production and consumption scale exceeded 36.5 million mt, ranking first globally for several consecutive years and accounting for more than one-third of the world's total consumption. Among this, hydrogen production from renewable energy sources has become a significant growth area. By the end of 2024, the global cumulative installed capacity for hydrogen production from renewable energy sources exceeded 250,000 mt/year, with China accounting for nearly half of this capacity. Large-scale projects in places like Ningdong, Ningxia, have been completed and put into operation. The first phase of the grid connection plan for the Jilin Da'an Integrated Demonstration Project for Green Hydrogen Production from Wind and Solar Power for Ammonia Synthesis has been approved, and an integrated development model of "wind, solar, hydrogen, and storage" has initially taken shape.

(III) Technological Innovation Driving Breakthroughs Across the Entire Industry Chain

In the hydrogen production sector, commercial trial operations of single-stack megawatt-class proton exchange membrane (PEM) electrolyzers for water electrolysis have been achieved, and megawatt-class anion exchange membrane (AEM) electrolyzers have been rolled off the production line. The project "Research and Demonstration Verification of Key Technologies for the Entire Chain of Marine Hydrogen Energy Production, Storage, Transportation, and Utilization" has commenced. In the storage and transportation sector, the country's first long-distance high-pressure pipeline project with the capability of blending hydrogen has been completed. The CQ-1 well for large-scale deep underground salt cavern hydrogen storage has commenced drilling. At the application level, approximately 24,000 fuel cell vehicles have been promoted, with over 540 hydrogen refueling stations in operation. The substitution effect of hydrogen energy in areas such as heavy-duty trucks and port machinery has gradually become evident.

(IV) Differentiated Regional Layouts Forming Characteristic Development Poles

The "Three-North" regions, leveraging their advantages in wind and solar resources and industrial foundations, have become core areas for green hydrogen production. They have cumulatively planned for over 90% of the country's total renewable energy-based hydrogen production projects, with a focus on promoting coupled demonstration projects of "green hydrogen + chemicals" and "green hydrogen + metallurgy" to achieve deep decarbonization in the industrial sector. The eastern region focuses on technological R&D and high-end applications. Shandong has built a demonstration community called "Hydrogen into Every Home," while Guangdong has launched a pilot project for transoceanic liquid hydrogen transportation. The Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Pearl River Delta have formed clusters of fuel cell vehicle industry chains, promoting the transformation of hydrogen from an industrial raw material to an energy carrier.

II. Systemic Breakthroughs in the Industry Still Face Challenges

(I) Cost and Economic Viability

Currently, the cost of hydrogen production from renewable energy sources remains higher than that from fossil fuels, primarily constrained by electricity costs, electrolyzer investments, and the operational efficiency of projects. Mechanism innovations such as "wind-solar-hydrogen-storage" integration are needed to reduce electricity prices. Efforts to promote the large-scale production of electrolyzers to lower unit costs, as well as the exploration of business models like virtual power plants and hydrogen-based fuel exports, are still pending.

(II) Standards and Safety

The dual characteristics of hydrogen as both an "energy source" and a "hazardous chemical" necessitate further optimization of the acceptance and management processes for related projects. Standards in key areas such as water electrolysis for hydrogen production, hydrogen storage and transportation, and equipment detection still need improvement, and efforts to achieve mutual recognition of international standards must be strengthened.

(III) Industry Chain Synergy

China relies on imports for key materials such as proton exchange membranes, gas diffusion layers, and automotive pressure hydrogen sensors. Technologies like wide-load regulation of electrolyzers also need breakthroughs. The investment and construction model for large-scale projects is still being explored, and the ecosystem of the entire industry chain, from "technological R&D to equipment manufacturing to project operation," needs further refinement.

III. Multiple Measures to Promote the Implementation of the Hydrogen Energy Strategy

As a core carrier for achieving the "dual carbon" goals, the hydrogen energy industry is transitioning from a policy-driven phase to a critical stage driven by both policies and the market. Systematic thinking is required to overcome bottlenecks in technology, cost, and the ecosystem, providing strong support for the construction of a new energy system.

(I) Accelerate the Large-Scale Demonstration of Technological Equipment

In the industrial sector, the focus is on "replacing fossil fuels with green hydrogen," aiming to steadily increase the penetration rate in industries such as synthetic ammonia and methanol production by 2030. In the transportation sector, "hydrogen-electricity complementarity" is being promoted, with fuel cell vehicles being rolled out in scenarios such as heavy-duty freight transport and port machinery. In the energy sector, the "wind-solar-hydrogen-storage" model is being explored, with hydrogen energy storage projects being built alongside 10-gigawatt-level wind and solar power bases to achieve cross-seasonal energy storage and power peak shaving.

(II) Develop China's Solutions for Global Competition

China has become the world's largest exporter of electrolyzers, with related enterprises accelerating the layout of international cooperation projects along the "Belt and Road." In the future, it is necessary to expedite the establishment of a green hydrogen certification system and cross-border trade rules, promote the "going global" of the entire chain of standards, equipment, and projects, and establish a dual advantage of "manufacturing leadership and application innovation" in the global hydrogen energy industry chain.

(III) Building a Collaborative Innovation Ecosystem Involving Government, Industry, Academia, and Research

It is recommended that national laboratories take the lead in integrating the resources of universities, enterprises, and research institutions, and encourage leading enterprises to spearhead the formation of innovation consortia to promote the full integration of technology R&D and achievement transformation. Policy innovation and scenario opening should be piloted in some regions to form an innovation and development pattern that synergistically advances basic research, technology transformation, and industrial application, thereby supporting technological innovation and industrial development in the hydrogen energy sector.