China leads global hydrogen race

March 31, 2026 (MLN): China is rapidly establishing itself at the forefront of the global clean hydrogen sector, drawing close to one-third of the roughly $110 billion in worldwide investment committed to the industry, according to industry leaders said at the Clean Energy Expo China (CEEC).

Speaking at the event, Ivana Jemelkova, chief executive of the Hydrogen Council, highlighted China’s dominant position in renewable hydrogen capacity, as reported by APP.

She stressed that stronger international energy partnerships will be critical to sustaining industrial expansion, supporting employment, and reinforcing economic resilience.

In contrast, Europe continues to face growing energy pressures. As a net importer, the region is contending with elevated costs, with gas futures having surged and oil prices climbing significantly since the start of the year.

Data from Ember shows that wind and solar accounted for just over 30% of the European Union’s electricity generation in 2025 well short of its targets to exceed 60% by 2030.

To address these challenges, the EU is prioritizing green hydrogen produced via electrolysis powered by renewable energy as a cornerstone of its energy transition.

Through the REPowerEU plan, the bloc aims to both produce and import 10 million tonnes of renewable hydrogen annually by the end of the decade.

On a global scale, clean hydrogen investment has expanded rapidly, recording annual growth of over 50% since 2020.

Despite this momentum, green hydrogen contributed less than 1% of total output in 2025, emphasizing the vast room for future expansion.

China, however, is moving aggressively to capture this opportunity. By the close of 2025, the country’s total hydrogen output had surpassed 37m tonnes, supported by renewable electrolysis capacity exceeding 200,000 tonnes per year.

It also leads in hydrogen mobility infrastructure, operating the largest network of fuel-cell vehicles and refuelling stations worldwide.

Cost competitiveness is further strengthening China’s position. Official figures indicate that the cost of producing electrolytic hydrogen has fallen by nearly 40% since 2020, with certain regions nearing cost parity with coal-based alternatives.

Amid these developments, European companies are increasingly looking toward China as both a production base and an innovation partner.

Industry participants at the expo pointed to China’s scale, technological advancement, and cost efficiency as key factors shaping future collaboration in the evolving global clean energy landscape.

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