Already an established leader in renewable energy production, China is making rapid advancements in green hydrogen production and integration, according to a recent report.

China’s green hydrogen production capacity will surge to 1.06 million tonnes ( mt ) by 2034; and, in 2025, the country’s green hydrogen capacity is estimated to be at 0.27mt, already having surpassed its target of 0.2mt for the year, finds the report by research company BMI.

This year’s outperformance is driven by the rapid commissioning of large-scale projects – such as the Enivision Chifeng Industrial Park and the Jilin Electric Power facility in Da’an – amid aggressive provincial targets. It is estimated that over 600 renewable hydrogen projects were in the pipeline by end-2024, with nearly 1.43 gigawatts of electrolyzer capacity operational as of June 2025.   

State-led investment and infrastructure buildout in China has been critical in driving full supply chain commercialization. China’s Ministry of Finance, for instance, provided 5.11 billion yuan ( US$711.3 million ) in funding supported by regulatory frameworks, such as the 2025 Energy Law and the June 2025 Nationwide Hydrogen Pilot Programme.

The pilot programme has outlined 11 specific pilot directions across four main categories – hydrogen production, storage and transportation, hydrogen applications, and integrated hubs/research and development ( R&D ).

China has already overtaken Japan in green hydrogen patents, according to research firm Astamuse, which analyzed 180,000 patents related to green hydrogen between 2013 to 2022, the vast majority of which were from Chinese entities.

The biggest beneficiary from increased green hydrogen technology is expected to be the country’s transport sector as it offers the industry a clean solution for the heaviest, longest-distance vehicles that are difficult to power with batteries alone. 

“Shipping and aviation in China are transitioning away from conventional fossil fuels towards hydrogen-based e-fuels, with investment focused on both production capacity and fleet retrofitting,” the BMI research note states. “The sector’s shift is underpinned by large-scale projects producing green methanol and ammonia, which are increasingly used as marine and aviation fuels.”

Ultimately, the usage of green hydrogen has several benefits to the transport sector as a whole, including high energy density, meaning you need less of a power source to go long distances. Moreover, green hydrogen fuel cell vehicles can be refuelled in several minutes, a major advantage over the hours it can take to charge large batteries, greatly benefiting supply chains.

Green hydrogen in the region

Outside of China, a number of countries in Asia have been enhancing their focus on green hydrogen. Japan, which has been heavily investing in green hydrogen technology for several years, already aims to increase its annual green hydrogen supply to 3mt by 2030 and 20mt by 2050.

India, likewise, is actively working to become a major green hydrogen producer and exporter, supported by its US$2.4 billion National Green Hydrogen Mission. The country aims to achieve a production capacity of 5mt per annum by 2030.

In Southeast Asia, several countries, including Singapore, Malaysia and Indonesia, have introduced national hydrogen strategies.

In Indonesia, collaborations are exploring large-scale green hydrogen production for export using geothermal sources with solid oxide electrolysis technology and investigating hydrogen use in port operations.

Malaysia’s initiatives include a large green hydrogen plant powered by floating solar, R&D collaborations and a project aiming to produce a significant amount of green hydrogen for export. The Malaysian state of Sarawak intends to become a hydrogen-based economy, using hydropower for production and export.

And Singapore is establishing an alkaline electrolyzer plant and exploring a commercial supply chain for decarbonized hydrogen using Japanese technology.