Page 7 - THE SOUTH CHINA BUSINESS JOURNAL
P. 7
Chinese government has identified hydrogen Worldwide, most hydrogen is generated through
energy as one of six industries of the future, natural gas (“grey hydrogen”), while the cheapest
and recently released plans that underscore – and most damaging to the environment – is
its importance for both energy and industrial made by burning thermal coal (“brown hydrogen”).
development. China is already the world’s China produces about 60 percent of its hydrogen
largest hydrogen supplier, producing about 25 from coal, and about 25 percent from natural gas.
million tons of hydrogen – a quarter of global output.
In addition to hydrogen production, storing
The China Hydrogen Alliance projects China’s and transporting hydrogen is just as difficult.
hydrogen demand to reach 35 million tons by 2030, Hydrogen is highly reactive and can easily rot steel,
to represent at least five percent of the country’s while posing high risks of explosion. Developing
energy supply, before increasing to 60 million infrastructure to store and transport hydrogen as
tons and 10 percent by 2050, and 100 million tons well as devices to apply hydrogen use in products is
and 20 percent by 2060. The group expects the a highly specialized and expensive process, resulting
industry’s output value to reach RMB 1 trillion in particularly high labor and R&D costs.
(US$157.44 billion) in value as early as 2025.
What are China’s plans to
Yet, while China is investing heavily in hydrogen develop hydrogen energy?
energy, the jury is still out about whether it will
meet its promise as a green energy source suitable Going forward, the Chinese government has
for mass adoption. Given this tension, what is in released plans to produce more hydrogen, and to
store for the hydrogen energy industry in China? meet this growing demand with greener production.
What is hydrogen energy? The importance that Chinese leaders put on
hydrogen energy can be seen by its prominence in
The appeal of hydrogen energy as a clean, the 14th Five Year Plan, which governs the country’s
renewable energy source is largely, but not entirely, development direction for the 2021-2025 period.
theoretical. Hydrogen can be burnt to produce
water vapor without emitting any carbon, which “
proponents argue gives it potential to be used as
a clean fuel, or energy carrier, for aircraft, vehicles, Policy planners have listed
and other purposes. the hydrogen industry as
a frontier area and one of
One way to produce hydrogen is through China’s six industries of the
electrolysis, where an electric current splits water future, in part because of its
into oxygen and hydrogen. If this electricity derives role in China’s commitment
from renewable sources, like solar or wind power, to become carbon neutral
hydrogen energy can be created without harmful before 2060.
carbon emissions. Hydrogen created through this
process is called “green hydrogen”. ”
There are several issues hampering the adoption SOUTH CHINA BUSINESS JOURNAL 4
of hydrogen energy in practice. Currently, the vast
majority of hydrogen is generated using fossil
fuels, which mitigates its potentially positive
environmental impacts.
energy as one of six industries of the future, natural gas (“grey hydrogen”), while the cheapest
and recently released plans that underscore – and most damaging to the environment – is
its importance for both energy and industrial made by burning thermal coal (“brown hydrogen”).
development. China is already the world’s China produces about 60 percent of its hydrogen
largest hydrogen supplier, producing about 25 from coal, and about 25 percent from natural gas.
million tons of hydrogen – a quarter of global output.
In addition to hydrogen production, storing
The China Hydrogen Alliance projects China’s and transporting hydrogen is just as difficult.
hydrogen demand to reach 35 million tons by 2030, Hydrogen is highly reactive and can easily rot steel,
to represent at least five percent of the country’s while posing high risks of explosion. Developing
energy supply, before increasing to 60 million infrastructure to store and transport hydrogen as
tons and 10 percent by 2050, and 100 million tons well as devices to apply hydrogen use in products is
and 20 percent by 2060. The group expects the a highly specialized and expensive process, resulting
industry’s output value to reach RMB 1 trillion in particularly high labor and R&D costs.
(US$157.44 billion) in value as early as 2025.
What are China’s plans to
Yet, while China is investing heavily in hydrogen develop hydrogen energy?
energy, the jury is still out about whether it will
meet its promise as a green energy source suitable Going forward, the Chinese government has
for mass adoption. Given this tension, what is in released plans to produce more hydrogen, and to
store for the hydrogen energy industry in China? meet this growing demand with greener production.
What is hydrogen energy? The importance that Chinese leaders put on
hydrogen energy can be seen by its prominence in
The appeal of hydrogen energy as a clean, the 14th Five Year Plan, which governs the country’s
renewable energy source is largely, but not entirely, development direction for the 2021-2025 period.
theoretical. Hydrogen can be burnt to produce
water vapor without emitting any carbon, which “
proponents argue gives it potential to be used as
a clean fuel, or energy carrier, for aircraft, vehicles, Policy planners have listed
and other purposes. the hydrogen industry as
a frontier area and one of
One way to produce hydrogen is through China’s six industries of the
electrolysis, where an electric current splits water future, in part because of its
into oxygen and hydrogen. If this electricity derives role in China’s commitment
from renewable sources, like solar or wind power, to become carbon neutral
hydrogen energy can be created without harmful before 2060.
carbon emissions. Hydrogen created through this
process is called “green hydrogen”. ”
There are several issues hampering the adoption SOUTH CHINA BUSINESS JOURNAL 4
of hydrogen energy in practice. Currently, the vast
majority of hydrogen is generated using fossil
fuels, which mitigates its potentially positive
environmental impacts.
