China's Operational and Under-Construction Renewable Hydrogen Capacity Tops 1.4 Million Tonnes

China’s combined operational and under-construction renewable hydrogen production capacity has exceeded 1.4 million tonnes per year, according to the China Hydrogen  Development Report (2026) recently released by the National Energy Administration (NEA).

As of June 2026, more than 270,000 tonnes per year of renewable hydrogen production capacity was already operational, while another 1.13 million tonnes per year was under construction. Water electrolysis remains the dominant production route.

Renewable Hydrogen Moves from Demonstration to Large-Scale Deployment

Global hydrogen production and consumption reached approximately 109 million tonnes in 2025, up around 3% year on year. Renewable hydrogen is moving beyond demonstration projects toward large-scale commercial deployment, with China and Europe together accounting for more than 70% of global renewable hydrogen capacity.

The shift reflects changes in hydrogen production technologies. Conventional hydrogen production relies primarily on natural gas reforming and coal gasification, both of which are carbon-intensive. Renewable hydrogen, by contrast, is produced by electrolyzing water using electricity generated from renewable sources such as wind and solar power, resulting in near-zero lifecycle emissions.

The development of more than 1 million tonnes per year of renewable hydrogen capacity signals a transition from laboratory research and pilot projects toward larger-scale industrial deployment.

Hydrogen Infrastructure Expands Alongside Production

China is also accelerating the development of hydrogen infrastructure. By the end of June, approximately 620 hydrogen refueling stations had been built nationwide. Several ports have also developed bunkering capabilities for green ammonia and green methanol, while more than 350 kilometers of pure hydrogen pipelines have entered operation.

The expansion of refueling infrastructure is supporting the deployment of hydrogen fuel cell vehicles, particularly in heavy-duty logistics and port transportation. Fuel cell vehicles can offer advantages in refueling time and driving range in these applications.

The commissioning of pure hydrogen pipelines is also helping address transportation constraints between hydrogen production facilities and end users, with the potential to reduce hydrogen delivery costs.

Renewable Hydrogen Expands into Downstream Applications

The expansion of renewable hydrogen production is supporting the development of downstream products and fuels, including green methanol, green ammonia and sustainable aviation fuel (SAF).

The China Green Fuels Development Report (2026), also released by the NEA, states that China’s total green fuel production capacity reached approximately 8 million tonnes of oil equivalent per year by the end of 2025.

Green methanol and green ammonia remain in the early stages of industrialization, while SAF is developing at a faster pace. In the shipping sector, the International Maritime Organization has established net-zero emissions targets, while the European Union has introduced mandatory requirements for the use of lower-carbon fuels. These measures are contributing to growing global demand for alternative marine fuels.

In aviation, the International Civil Aviation Organization forecasts that global demand for SAF could reach 8 million to 16 million tonnes of oil equivalent per year by 2030.

Technology Advances Continue, but Costs Remain a Challenge

China has also made progress in several key hydrogen and renewable fuel technologies. These include domestically developed off-grid water electrolysis systems, flexible green ammonia synthesis technologies and pure-oxygen fluidized-bed biomass gasification equipment. Several industrial installations have achieved stable operation, with key technical indicators approaching international benchmarks.

However, production costs remain a major challenge to the wider commercial deployment of renewable hydrogen. Production economics are highly sensitive to electricity prices, and further reductions in renewable power costs will be critical for renewable hydrogen to compete with hydrogen produced from fossil fuels.

Policies supporting direct renewable power supply to electrolyzers, together with improved mechanisms for integrating new renewable generation into the power system, are helping address some of the regulatory and infrastructure barriers facing renewable hydrogen projects. However, commercially viable business models will take further time to develop and demonstrate at scale.