There’s a technological race for new forms of energy underway around the world, and it’s changing rapidly. At the center of this competition is green hydrogen, which is one of the current bets for reducing global greenhouse gas emissions, thus accelerating the transition to cleaner alternative sources. China, according to some reports, is gaining an advantage in this sector, while the US still faces regulatory and financing hurdles. Learn more about the subject and what we can expect from the future of the energy transition.
China’s rise in green hydrogen as the world moves to renewable energy options
Within this new market, China is already emerging as a leader. In a short period of time, the country has managed to expand its production capacity through the electrolysis process, reaching two gigawatts installed — 70% of the global total. This milestone represents surprising progress even for experts, who a year ago estimated that Chinese production would be much lower by 2050. The most recent projections now indicate that the country could produce up to 33.4 million tons of green hydrogen by mid-century.
This accelerated growth is due to the Chinese government’s significant stimulation of this sector with regional policies, direct subsidies, and significant investment. Some cities, such as Erdos, in Inner Mongolia, have a system of discounts per kilogram of hydrogen produced, which helps reduce costs and make the fuel more competitive compared to traditional options, such as fossil fuels. This has attracted local and foreign companies, which already see China as a more favorable environment for establishing their projects.
A key factor in the expansion of this sector is its internationalization strategy. Some Chinese manufacturers are signing contracts with hydrogen projects in Europe, the Middle East, Brazil, and even the United States. This means that, in addition to dominating the domestic market, China has also been able to export technology and equipment, expanding its global influence in the energy transition.
Why is green hydrogen so important in the development of the clean energy sector?
Despite seeming futuristic, green hydrogen is increasingly becoming part of our daily lives. Experts point out that it can be used in fertilizer production, heavy-duty transportation, aviation, and, in some cases, fuel-cell cars. Unlike regular hydrogen, which is made from fossil fuels, the green version does not emit pollutants during its manufacturing process, making it an important tool in combating climate change.
Beyond this, hydrogen also helps diversify the world’s energy matrix. Globally, countries are highly dependent on electricity, and having an energy source that can be stored and transported efficiently is a major advantage of this new modality. Therefore, large companies in the oil, chemical, and transportation sectors are investing heavily in this field.
What is the long-term vision for this new sector?
The new scenario being debated goes beyond energy. What is at stake is technological leadership, jobs, and new global value chains. If China maintains its current pace, it could potentially dictate prices, standards, and even the speed at which the global energy transition is progressing. The United States, however, needs to resume supporting the sector; otherwise, the country risks losing ground in one of the most strategic industries of the 21st century.
What can we expect from the future of green hydrogen?
Green hydrogen is no longer a distant promise of the energy future, but a rapidly growing reality. China has invested aggressively and implemented policies in this new market and is seizing the moment to assume commercial leadership. Meanwhile, the US still faces regulatory barriers that hinder its progress.
Beyond geopolitical competition, green hydrogen has the potential to redefine how we produce, transport, and consume energy. The future of the global economy is expected to be shaped by this emerging new sector, and whoever leads this race has the chance to exert a decisive influence on the next chapters of the energy transition.