Low-carbon hydrogen to get more support in 2025 from Beijing’s new policy push

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Beijing orders country’s refiners and chemical companies to increase their use of low-carbon hydrogen to reduce emissions

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A hydrogen storage tank. Photo: Shutterstock Images

Yujie Xue

Published: 12:00pm, 2 Jan 2025

Low-carbon hydrogen is expected to get more support in China after Beijing said it would accelerate its development as a part of a national decarbonisation push and high demand from the industrial, shipping and aviation sectors, according to analysts.

On Tuesday, the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission and the National Energy Administration jointly unveiled a plan to accelerate the application of low-carbon hydrogen in the industrial sector.

The plan called for the country’s refiners and chemical companies to increase the use of hydrogen in their production processes to reduce emissions. It also encouraged the firms to step up their research and development efforts for green methanol and green ammonia, two zero-carbon fuels derived from hydrogen that can be used in the power generation and transport sectors.

The plan also called for greater deployment of hydrogen fuel cell vehicles, as well as the development of hydrogen-powered ships, aircraft and locomotives.

By 2027, the industrial sector should be making “active progress” in the production and use of low-carbon hydrogen and derivative fuels, according to the plan.

“We think the potential of hydrogen in the industrial sector has been confirmed,” Wu Jiaxiong, an analyst at BOCI Securities said in a note on Tuesday.