Market Research Report

China Green Hydrogen Market Key Takeaways

• The China green hydrogen market was valued at USD 18.82 billion in 2025 and is projected to grow from USD 20.36 billion in 2026 to USD 32.67 billion by 2032, registering a CAGR of 8.2% during 2026–2032.
• Alkaline electrolysis remains the dominant technology segment, accounting for a 72.4% share in 2026.
• Refining & petrochemicals represents the leading end-use industry, accounting for a 39.2% share in 2026.
• The market is moderately consolidated, with the top five companies accounting for a 46.3% share in 2026.

China Green Hydrogen Market Size & Outlook

The green hydrogen market in China was valued at approximately USD 18.82 billion in 2025 and is estimated to reach USD 20.36 billion in 2026. The market is projected to attain USD 32.67 billion by 2032, registering a CAGR of 8.2% during 2026–2032

Market expansion is supported by China's accelerating transition toward low-carbon industrial systems, increasing integration of renewable electricity with hydrogen production assets, and rising adoption of hydrogen-based solutions across refining, chemicals, ammonia, and heavy industries. The country's strong renewable energy infrastructure continues to improve the economic feasibility of large-scale green hydrogen deployment.

China's expanding renewable energy ecosystem is creating a strong foundation for future green hydrogen commercialization. According to the National Development and Reform Commission (NDRC), China's installed renewable energy capacity reached approximately 2.09 billion kilowatts by May 2025, highlighting the availability of large-scale clean electricity resources for electrolysis applications. This rapid renewable expansion supports the development of renewable-powered hydrogen production, strengthens energy security, and improves the competitiveness of the green hydrogen infrastructure market.

The market outlook is further strengthened by China's progress in developing commercial-scale green hydrogen production capabilities. According to the State Council Information Office's 2025 white paper on carbon neutrality, China achieved more than 150,000 tonnes of annual green hydrogen production capacity by the end of 2024 , positioning the country as the global leader in green hydrogen production capacity. This capacity expansion reflects increasing investment in electrolyzer deployment, renewable hydrogen projects, and integrated industrial applications.

Furthermore, China's industrial decarbonization strategy is creating additional growth opportunities for hydrogen applications beyond traditional energy uses. The government continues to promote renewable energy utilization, green industrial transformation, and clean fuel substitution across key sectors. By strengthening renewable power availability, hydrogen technology innovation, and low-carbon manufacturing capabilities, China is expected to accelerate the adoption of industrial hydrogen solutions, expand the clean energy transition market, and reinforce its leadership position in the global hydrogen economy.

China Green Hydrogen Market Key Indicators

• According to the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA), China’s Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021–2035) targets the production of 100,000–200,000 tonnes of renewable hydrogen annually by 2025 , alongside the deployment of approximately 50,000 hydrogen fuel-cell vehicles. The national strategy is accelerating commercial green hydrogen deployment, strengthening domestic electrolyzer manufacturing, and supporting industrial decarbonization across key sectors.
• As per the National Energy Administration (NEA, 2025), China added approximately 278 GW of new renewable energy capacity in 2024, including solar and wind installations that provide the primary power source for utility-scale green hydrogen production. The rapid expansion of renewable electricity is improving the availability of low-cost clean power, supporting large-scale electrolysis projects, and enhancing the long-term competitiveness of the country's green hydrogen economy.
• By the National Energy Administration (NEA), the first batch of national hydrogen energy pilot programs approved 41 hydrogen demonstration projects and 9 regional pilot areas, covering renewable hydrogen production, storage, transportation, refueling infrastructure, and industrial applications. These large-scale demonstration initiatives are accelerating the commercialization of green hydrogen across steelmaking, refining, chemicals, and integrated renewable energy projects, strengthening China's industrial decarbonization roadmap.

China Green Hydrogen Market Scope

China Green Hydrogen Market Growth Drivers

Expanding Hydrogen Production Strengthens Green Hydrogen Commercialization

China's leadership in the hydrogen economy continues to accelerate the commercialization of renewable hydrogen across industrial sectors. According to the National Energy Administration (NEA), China's hydrogen production and consumption exceed 36.5 million tonnes in 2024, maintaining the country's position as the world's largest hydrogen market. In addition, China accounts for more than 50% of the global renewable energy-based hydrogen production capacity, reflecting its rapid deployment of renewable-powered electrolysis projects and strong domestic manufacturing ecosystem. This expanding production base strengthens feedstock availability for refining, steelmaking, chemical manufacturing, and emerging green fuels, while reinforcing the country's transition toward low-carbon industrial processes and supporting sustained growth of the renewable hydrogen industry.

The market momentum is further reinforced by coordinated national and provincial initiatives that accelerate large-scale project deployment, renewable energy integration, and industrial adoption of clean hydrogen technologies. Continued investments by major state-owned enterprises in utility-scale electrolysis, green chemical production, and hydrogen infrastructure improve commercial viability and strengthen China's competitive position across the hydrogen production market and industrial decarbonization solutions, creating long-term demand for renewable hydrogen throughout the country's heavy industrial value chain.

Recent Trend

Commercialization of Large-Scale Electrolyzer Projects

China is rapidly transitioning from pilot-scale hydrogen production to utility-scale renewable hydrogen projects as the commercialization of 100 MW-class electrolyzer systems becomes a defining industry trend. According to the International Energy Agency (IEA, Global Hydrogen Review 2025), China continues to lead the global pipeline of large-scale electrolysis projects , supported by its extensive domestic manufacturing ecosystem and declining equipment costs. The deployment of larger electrolyzer installations improves economies of scale, lowers hydrogen production costs, and accelerates the integration of renewable electricity into industrial hydrogen production, strengthening the country's position in the renewable hydrogen economy.

The trend gains further momentum through commercial project execution by leading state-owned enterprises. In June 2023, China Petroleum & Chemical Corporation (Sinopec) commenced operation of the 260 MW green hydrogen demonstration project in Kuqa, Xinjiang, one of the world's largest photovoltaic-powered hydrogen production facilities supplying renewable hydrogen directly to refinery operations. The project demonstrates the increasing commercial viability of large-scale electrolysis, promotes industrial decarbonization, and accelerates the adoption of utility-scale electrolysis and green hydrogen infrastructure across China's heavy industrial sectors.

China Green Hydrogen Market Opportunities and Challenges

Catalyst Material Constraints Drive Electrolyzer Innovation

The large-scale deployment of Proton Exchange Membrane electrolyzers continues to face challenges from the limited global availability of iridium, a critical catalyst material required for high-performance electrolysis. According to the International Energy Agency (IEA, Global Hydrogen Review 2025), conventional PEM electrolyzers typically require 300–400 kg of iridium per GW of installed capacity, while global primary iridium production remains at only around 7.5 metric tonnes annually . This imbalance increases supply-chain risks, places upward pressure on electrolyzer manufacturing costs, and encourages Chinese manufacturers to accelerate the development of catalyst-efficient technologies, supporting the long-term competitiveness of the PEM electrolyzer market and the broader green hydrogen value chain.

The challenge is accelerating innovation in large-scale alkaline electrolysis systems that reduce dependence on scarce catalyst materials while improving commercial scalability. In October 2024, LONGi Hydrogen Technology Co., Ltd. supplied four sets of 1,000 Nm³/h high-current-density medium-pressure alkaline electrolyzer systems for Uzbekistan’s first green ammonia pilot project, developed with ACWA Power and POWERCHINA Huadong Engineering . The deployment highlights the commercial potential of advanced alkaline systems, strengthening China's advanced electrolyzer market, expanding renewable hydrogen technologies, and supporting the global competitiveness of Chinese hydrogen equipment manufacturers.

Segmentation Insights

Scalable Alkaline Technology Leads Commercial Deployment

By technology, alkaline electrolysis dominates the China green hydrogen industry with 72.4% share of the industry in 2026, driven by its commercial maturity, lower capital cost, and suitability for large-scale renewable hydrogen production. According to the International Energy Agency (IEA, Global Hydrogen Review 2025), China manufactures more than 60% of the world's electrolyzers, strengthening the domestic supply chain and supporting widespread deployment of alkaline systems. This manufacturing advantage continues to expand the alkaline electrolyzer market, reinforce renewable hydrogen production, and strengthen China's electrolyzer manufacturing industry.

The segment maintains its leadership as Chinese energy enterprises increasingly deploy alkaline electrolysis systems across large-scale hydrogen projects supporting industrial decarbonization. In 2025, China Energy Engineering Group advanced the Songyuan Hydrogen Energy Industrial Park in Jilin Province, integrating 64 alkaline electrolyzers with green hydrogen, ammonia, and methanol production facilities . The development demonstrates China's continued reliance on mature alkaline technology for utility-scale hydrogen production and strengthens the role of domestic electrolyzer manufacturers in the expanding green hydrogen ecosystem. Based on technology type, the China green hydrogen industry is segmented into:

• Alkaline Electrolysis
• Proton Exchange Membrane (PEM) Electrolysis
• Solid Oxide Electrolysis (SOEC)
• Anion Exchange Membrane (AEM) Electrolysis

Refining & Petrochemicals Applications Lead Commercial Hydrogen Adoption

By end-use industry, refining & petrochemicals dominate the China green hydrogen industry with a 38.6% industry share in 2026, supported by China's position as the world's largest refining industry. According to the National Bureau of Statistics of China (NBS), China processed approximately 708.43 million tonnes of crude oil in 2024 , creating substantial demand for hydrogen in hydrocracking, hydrotreating, and desulfurization processes. As refiners increasingly replace fossil-derived hydrogen with renewable alternatives, demand continues to expand across the green refining sector and the petrochemical decarbonization market.

The segment's leadership is further reinforced by large-scale refinery decarbonization projects undertaken by state-owned enterprises. In June 2025, China Petroleum & Chemical Corporation (Sinopec) continued commercial operation of its Kuqa green hydrogen project, supplying renewable hydrogen to the Tahe Refining & Chemical facility in Xinjiang. The project demonstrates the growing integration of renewable hydrogen into refinery operations, reducing carbon emissions while accelerating clean hydrogen adoption across China's refining and petrochemical industry. Based on the end-user segment, the industry is segmented into:

• Refining & Petrochemicals
• Fertilizers & Ammonia
• Steel & Heavy Industry
• Mobility & Transportation
• Power & Utilities
• Chemicals & Other Industrial Users

China Green Hydrogen Market Competitive Analysis

The top five companies collectively account for an estimated 46.3% of the China green hydrogen market in 2026, reflecting a moderately consolidated market led by state-owned energy enterprises and domestic electrolyzer manufacturers. Their top five companies are Sinopec Corp., Envision Group, Peric Hydrogen Technologies Co., Ltd., LONGi Hydrogen Technology Co., Ltd., and Sungrow Hydrogen Sci. & Tech.

Top Companies in the China Green Hydrogen Industry

• Sinopec Corp. (China Petroleum & Chemical Corporation)
• Envision Group
• Peric Hydrogen Technologies Co., Ltd.
• LONGi Hydrogen Technology Co., Ltd.
• Sungrow Hydrogen Sci. & Tech. Co., Ltd.
• Ningxia Baofeng Energy Group Co., Ltd.
• China National Petroleum Corporation (CNPC)
• China Energy Investment Corp. (CHN Energy)
• State Power Investment Corp. (SPIC)
• Cockerill Jingli Hydrogen Technologies Co., Ltd.

China Green Hydrogen Industry News and Recent Developments

May 2026: Sinopec Consolidates Massive Domestic Downstream Supply for 1GW Green Hydrogen Grid

Sinopec, China’s state-owned refining giant, officially signed a multi-year Green Hydrogen Supply Framework Agreement with gas distributor Binhai Investment Tianjin. The offtake contract guarantees the commercial sale of 20,000 to 30,000 metric tonnes per year of green hydrogen produced at Sinopec's landmark 1-gigawatt Ulanqab project in Inner Mongolia. The fuel will be delivered via a newly constructed 400-kilometer cross-regional pipeline to feed coastal refineries and blending networks in the Beijing-Tianjin-Hebei industrial belt at stabilized rates of 19–22 RMB/kg.

Impact Analysis: The deal moves China's green hydrogen economy from localized demonstration pilots to an integrated, pipeline-connected commercial market. By locking in large-scale downstream offtakers before full operation, Sinopec successfully addresses the sector's long-standing logistical bottleneck—connecting remote, resource-rich generation hubs in the north directly to high-demand coastal refining hubs.

May 2026: LONGi Hydrogen Captures European Supply Chain via Major 1GW Manufacturing Alliance

Leading renewable equipment manufacturer LONGi Hydrogen expanded its global footprint by entering into a 1-gigawatt strategic OEM agreement with Norway’s HydrogenPro. Under this development, HydrogenPro mofthballed its standalone 500-megawatt assembly factory in Tianjin to manufacture its proprietary European-destined systems directly on automated production lines owned by LONGi in China. This announcement follows a steep surge where Chinese electrolyser manufacturers achieved a 17-fold year-on-year increase in overseas shipments.

Impact Analysis: This alliance marks a clear turning point where international hydrogen companies are conceding the core manufacturing race to automated Chinese factories. By utilizing LONGi’s automated infrastructure, Western partners can lower system costs to navigate tight financing conditions, while LONGi cements its role as the dominant hardware supplier for the European and global energy transition.