At a glance: The MIIT and two other departments published a pilot workplan to expand the application of hydrogen energy in various fields. Key goals and features include:
- Achieve a drop in the average price of hydrogen to below 25 CNY/kg and raise the number of fuel cell vehicles in China to 100,000 units by 2030
- Select some urban areas with good industrial foundations as pilot areas to expand the application of hydrogen energy
- Designate hydrogen application scenarios for the pilot areas, including fuel cell vehicles, green ammonia, hydrogen-based chemical raw material substitution, hydrogen metallurgy and hydrogen-blended combustion
- Reward individual pilot areas with up to CNY 1.6 billion over four years, to be used exclusively to support the hydrogen industry
MERICS comment: Hydrogen promises advances in decarbonization, including in energy intensive sectors, like steel- and aluminum-smelting, and business opportunities in electrolyzer manufacturing and storage technologies. In transport, it looks especially promising for commercial vehicles like buses and trucks. This is why hydrogen is listed as a strategic future industry in the 15th Five-year Plan (2026-2030).
China is moving quickly to lead in the global hydrogen industry in hopes of replicating its success with EVs. Global hydrogen production was 100 megatons in 2024, with China’s share at around 30 percent, compared to less than 10 percent for Europe. There is a similar picture in electrolyzer manufacturing, where China accounts for more than half of global capacity, compared to one fifth in Europe. Green hydrogen, derived from electrolysis rather than gas or coal, make up less than one percent of global hydrogen so far. Even so, the bulk of green hydrogen is currently produced in China, where it has considerably lower production costs than elsewhere.
Europe is struggling to take on the challenge. The European Union has a goal for green hydrogen output to reach 10 megatons by 2030 but realizing it remains some way off. Europe reportedly led in global hydrogen investment in 2025, at around EUR 12 billion, but meeting its target would require a total of EUR 263 billion by 2030. It is crucial to increase public funding across member states, expand manufacturing capacity for electrolyzers and narrow the cost gap with China.
Article: Notice on Carrying out the Pilot Work of the Comprehensive Application of Hydrogen Energy (工业和信息化部 财政部 国家发展改革委关于开展氢能综合应用试点工作的通知) (Link)
Issuing bodies: MIIT, Ministry of Finance, NDRC
Date: March 25, 2026