context: The State Council’s 2026 Government Work Report proposed establishing a mechanism for increasing investment and sharing risks in future industries. Hydrogen, especially green hydrogen, has emerged as a critical energy carrier in the PRC’s renewable-energy transition, alongside electricity.
Hydrogen energy and electricity are two complementary energy carriers that solve interlocking challenges in the PRC’s low-carbon energy system, according to Ouyang Minggao 欧阳明高 International Hydrogen Fuel Cell Association chairman. Electricity is efficient but difficult to store for long periods of time. Hydrogen is easier to store and can act as clean fuel or feedstock for industries that are difficult to electrify.
Hydrogen is primarily used for
- energy storage: involves using electrolysis to convert electricity into hydrogen,
- as feedstock: hydrogen acts as a raw material and ingredient in chemical and metallurgical industries
- power: hydrogen fuel cells are developing rapidly, expanding from road vehicles to engineering machinery, small ships, aircraft and submarines
While recognised as a strategic asset in the energy transition, green hydrogen still has a long way to go before becoming a large-scale and commercially viable energy option. The path from production to transportation, storage to utilisation, is long, complex and costly.
To advance green hydrogen commercialisation, Ouyang recommends
- using surplus renewable electricity as the primary, low-cost source for hydrogen production
- integrating hydrogen into multi-energy systems that combine electricity, heat and storage to maximise overall value and efficiency
- developing localised, scenario-driven applications tailored to regional resources and industrial demands, such as stabilising power grids or serving as a clean feedstock for chemical plants
The PRC has already achieved two significant breakthroughs in hydrogen energy technology, demonstrating application in both large-scale power generation and remote, extreme environments. For example
- using hydrogen produced by wind and solar power, a 30-megawatt pure-hydrogen gas turbine cuts over 200,000 tons of CO₂ per year compared to an equivalent fossil fuel plant
- a 'hydrogen rise' fuel cell providing backup power from excess wind and solar generation can withstand extreme temperatures on the PRC's Qingling research station in Antarctica
- these fuel cells will begin to be deployed in more places, providing energy to communities and industrial parks and serving as emergency power sources for power plants, data centres and hospitals