White & Case advises Advantage Partners on formation of Japan Hydrogen Fund
Global law firm White & Case LLP has advised Advantage Partners, a leading Asian private equity firm, on the successful formation of the Japan Hydrogen Fund.
“The successful formation of the Japan Hydrogen Fund is a landmark achievement in advancing the hydrogen economy,” said White & Case partner Eriko Sakata, who led the Firm’s deal team. “We have supported Advantage Partners and JH2A in this significant endeavor and appreciate their trust in our team.”
The Japan Hydrogen Fund, the formation of which was led by Japan Hydrogen Fund GP, Inc., is the first fund established under the collaboration between Japan Hydrogen Association (JH2A) and Advantage Partners and dedicated to the realization and development of the hydrogen society. The Fund’s first closing was completed on August 27, 2024, with over US$400 million committed from a diverse group of investors, including Toyota Motor Corporation, Iwatani Corporation, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Bank, Ltd., Tokyo Century Corporation, Japan Green Investment Corp. for Carbon Neutrality (JICN), Total Energies and Fukuoka Bank, Ltd.
Initiated in September 2023, the collaboration between JH2A and Advantage Partners aims to tackle global climate change by establishing a hydrogen supply chain in Japan and internationally, and seeks to assist in creating demand for hydrogen, reducing costs through innovation and funding essential businesses. The Japan Hydrogen Fund will invest in hydrogen-related infrastructure and technology aimed at accelerating the implementation of the global hydrogen supply chains and scaling it up through public and private sector collaboration.
The White & Case team which advised on the transaction was led by partner Eriko Sakata (Tokyo) and included partners Kristen DiLemmo (London) and Douglas Landy (New York) and associates Mao Muraguchi and Saori Takahashi (both Tokyo).
Airbus, Kansai Airports, Kawasaki assess hydrogen infrastructure feasibility in Japan
The partners aim to assess the potential for introducing and operating hydrogen-powered aircraft as part of the “Hydrogen Hub at Airports” programme.
Aircraft manufacturer Airbus has signed a memorandum of understanding (MoU) with Kansai Airports, and Kawasaki Heavy Industries (Kawasaki) to explore the feasibility of establishing hydrogen infrastructure at three Japanese airports.
This study will take place at Kansai International Airport, Osaka International Airport, and Kobe Airport.
The partners aim to assess the potential for introducing and operating hydrogen-powered aircraft as part of the “Hydrogen Hub at Airports” programme.
It will evaluate the technological, economic, legal, and operational aspects of implementing a hydrogen infrastructure roadmap at these locations.
The collaboration seeks to address challenges through potential demonstration projects that may arise from the study’s findings.
Hydrogen-powered aircraft is expected to slash aircraft emissions in the air, while also contributing to decarbonise air transport activities on the ground.
Kansai Airports executive vice president and chief technical officer Mathieu Boutitie said: “We are delighted that this partnership will not only help us crystallise hydrogen solutions in the airport sector but also contribute to the decarbonization in the aviation industry.
“Following our efforts with Airbus since 2022, we welcome Kawasaki in our collaboration and strive to become a model for hydrogen use in airport infrastructure.”
Previously, Airbus and Kansai Airports have worked together on hydrogen utilisation in airport infrastructure development.
This has included showcasing hydrogen-powered fuel cell buses and forklifts.
Each airport’s unique geographical and traffic characteristics have provided Airbus with valuable insights into various hydrogen supply methods.
Kawasaki brings extensive experience in airport infrastructure to the partnership, including baggage handling systems and a proven track record in designing liquified hydrogen supply networks.
This collaboration marks a progression into a more integrated feasibility study that incorporates both supply chain and airport operation perspectives.
Airbus has conducted a liquified hydrogen demand forecast for the airports, indicating an initial requirement of several tons per day, potentially rising to hundreds of tons daily by 2050.
The company notes a mature hydrogen industry presence in the Kansai region, supported by comprehensive policy measures, which bodes well for the future market of hydrogen aviation in Japan.
Link: https://www.airport-technology.com/news/airbus-kansai-airports-kawasaki/?cf-view
Hydrexia Penetrates Hydrogen Market in Japan
Hydrexia Singapore PTE LTD, a wholly-owned subsidiary of Hydrexia Holding Limited (Hydrexia), a leading globally integrated hydrogen solution provider, and Kitahama GRF Co. Ltd (KGC), a key power supplier and data center developer in Japan, today announced that the two companies have inked a Memorandum of Understanding (MOU) to jointly develop the hydrogen market in Japan.
Under the framework of the MOU, Hydrexia and KGC will join hands in developing a supply chain of hydrogen applications in Japan. Leveraging the across value chain solution capability of Hydrexia and the local business resources of KGC, both companies intend to cooperate on a wide scope of hydrogen business with a phased approach. The planned collaboration calls for joint efforts to develop hydrogen plant design and construction, hydrogen production, transportation and storage utilizing Hydrexia’s magnesium-based solid-state technology in Japan. The immediate initial phase will be focused on a feasibility study of hydrogen supply to locally operated fuel cells.
The MOU with KGC in Japan market adds yet another new and important representation to Hydrexia’s fast-growing business operation in global markets. Since the beginning of 2024, Hydrexia has successfully expanded its business operations to Malaysia, India, Australia, Brazil, and Thailand, having secured business contracts, strategic partnership, and joint venture.
said Alex Fang, the chief executive officer of Hydrexia Holding Limited.
“We are thrilled to have stepped our feet in this important global hydrogen market though our planned business collaboration with KGC.
I strongly believe that Hydrexia can add significant technological values to our partner’s needs for a supply chain of hydrogen applications,”
“As a trusted partner, Hydrexia will do its utmost to ensure the successful buildout of this chain through all phases,” Fang added.
said Mr. Norihide Kataoka
“Our decision to partner with Hydrexia is primarily based on the company’s hydrogen technology primacy along with its demonstrated project experience,”
the president of KGC. “We look forward to working closely with Hydrexia in gradually materializing our planned hydrogen business development in the coming years,” Kataoka continued.
As an across-industry value chain technology solution provider, Hydrexia is fully leveraging its across-industry value chain technologies and solutions for its global customers. The recognition and acceptance by an increasing number of global customers is a testament to the advantages and differentiations of Hydrexia’s technologies and solutions in hydrogen purification, hydrogen transportation and storage, and hydrogen refueling stations.
[About KGC]
KGC is a wholly owned subsidiary of Kitahama Capital Partners Co., Ltd., listed on the Standard Market of The Tokyo Stock Exchange. KGC is a key player in Japan in the development and operation of green energy and data centers. It also engages in research, design, and development of power plants and battery energy storage.
[About Hydrexia]
Hydrexia Holding Limited is a leading global integrated hydrogen technology solution provider. The company specializes in providing technology solutions for hydrogen production, storage, transportation, and end-use applications. Leveraging its solid R&D capabilities and industry-leading technology, Hydrexia aims to effectively address the technology and application needs across the global hydrogen industry value chain.
Link: https://fuelcellsworks.com/2024/10/23/h2/hydrexia-penetrates-hydrogen-market-in-japan
Tokyo’s climate goals rely on a fuel that is falling out of favor
The year is 2050. You wake up in your home in Tokyo and take a nice, hot shower thanks to a hydrogen-fueled boiler. Then, you receive a delivery from a drone powered by a hydrogen fuel cell, before hopping in your car running on the same kind of fuel to drive to Haneda Airport for an overseas trip on a hydrogen-powered aircraft — journeys that no longer need to come with guilt or anxiety over their planet-warming impact, since they no longer produce those nasty carbon dioxide emissions.
That, and much more besides, is the vision outlined in recent years, including at a conference on hydrogen late last month, by the Tokyo Metropolitan Government, which is targeting the “full use” of hydrogen produced using renewable energy “in all fields” by 2050 as part of its decarbonization drive.
Hydrogen is a versatile energy carrier, does not produce CO2 when burned, and in a fuel cell can generate electricity without emitting the planet-warming gas, making it an appealing way to reach net-zero greenhouse gas emissions. That has seen it emerge as a kind of “Swiss Army knife” of decarbonization, with hydrogen being put forward for use in everything from heat to power generation and transportation — as highlighted by Tokyo’s hydrogen vision.
But at the moment, the vast majority of hydrogen is produced using fossil fuels, meaning it is hardly emissions-free — current production results in about the same amount of annual greenhouse gas emissions as the high-polluting aviation and shipping sectors combined. Low-emissions hydrogen, meanwhile, accounted for less than 1% of supply in 2022, according to the International Energy Agency. That, in turn, raises questions about where this scarce resource is best directed.
A display at the Tokyo Hydrogen Museum showing a variety of uses for hydrogen in the transportation sector. Despite the capital’s enthusiasm, the outlook is dim for many proposed uses for the fuel. | Chris Russell
At the same time, many, if not most, of its Swiss Army knife tools are looking increasingly blunt as reality sets in about hydrogen’s physical constraints and the knock-on economic ramifications, all while competing solutions prove their worth.
“Globally, we’re definitely on a downward trajectory in terms of expectations,” says Martin Tengler, head of hydrogen research at BloombergNEF.
A hydrogen society
Tokyo is targeting the use of hydrogen — particularly its “green” variant, produced using an electrolyzer powered by renewables — across a wide range of sectors, although the metropolitan government has not set or estimated what percentage of the capital’s energy mix it will comprise by 2050, when Tokyo aims to reach net-zero emissions.
Major areas include heating and power generation, as well as energy storage in order to compensate for the variability of renewables’ output. But transportation looms largest, with Tokyo heavily promoting a switch to hydrogen fuel-cell vehicles (FCVs) for passenger cars, buses and trucks. As of April, the capital had 21 hydrogen refueling stations for such vehicles, including 13 that were bus compatible.
The capital’s hydrogen vision — fronted by the blue, behatted character Suison (a play on the Japanese word for hydrogen, “suiso”), and promoted by the Tokyo Hydrogen Museum, which is outfitted with child-friendly activities, model hydrogen dispensers and a lecture theater — dovetails with Japan’s national strategy.
A dispenser at a hydrogen refueling station in Tokyo. Tokyo is offering a range of subsidies in support of hydrogen projects and about ¥13 billion has been set aside for this in the current budget. | Chris Russell,
Tokyo is offering a range of subsidies in support of hydrogen projects — up to ¥1 billion (about $6.6 million) in support of the construction of pipelines for a refueling station — and about ¥13 billion has been set aside for this in the current budget.
The metropolitan government has its eye on boosting supply as well, using its own land for production and procuring hydrogen made in Yamanashi Prefecture for use at the Tokyo Big Sight exhibition center.
It is also looking further afield to countries, such as Australia, with potentially surplus renewables capacity, which could be directed to the production of green hydrogen and then shipped to Japan. In early 2022, the 116-meter Suiso Frontier, a liquefied hydrogen carrier built by Kawasaki Heavy Industries, completed its first international voyage, traveling to Australia’s Victoria state and returning to Kobe.
In support of these efforts, Tokyo has increased its hydrogen promotion budget to ¥20.3 billion for the fiscal year through March, up from ¥11.4 billion the previous year.
“For the diffusion of hydrogen, there are challenges including the reduction of production costs and the necessity of creating a supply chain. It is also essential to expand demand for hydrogen in a variety of fields as well as promote technological development and mass production,” says Chikako Ikeda, director of the Industry and Energy Policy Division in the Tokyo Metropolitan Government’s Bureau of Industrial and Labor Affairs. “Therefore we aim to boost both the demand and supply of hydrogen.”
The Suiso Frontier, the world’s first hydrogen carrier, arrives at the Port of Hastings in Victoria, Australia, from Kobe in January 2022. | HySTRA / via Reuters
Electric competition
Even at the metropolitan government’s own Hydrogen Energy Action Conference on Oct. 22, International Renewable Energy Agency Director-General Francesco La Camera expressed a view on hydrogen’s use that was diametrically opposite to large parts of Tokyo’s plan.
“We understand green hydrogen is available and versatile, but not infinite. This realization has led us to a critical consensus: Green hydrogen should not be dissipated in sectors that can be directly electrified,” he said in a keynote speech.
“The future of hydrogen cars appears limited to a few applications, and the residential heating is better served by heat pumps and direct renewable energy sources,” he added.
The main issue with hydrogen in road transportation relates to efficiency, with significant amounts of energy being lost at each stage of the process of converting electricity to hydrogen and back again — in fact, about 30% is lost through electrolysis right off the bat. That makes hydrogen fundamentally more expensive than the electricity used to produce it, and compares poorly with batteries’ round-trip efficiency of over 80%. Another advantage of battery electric vehicles (BEVs) is that they are charged directly from the grid.
A Toyota Mirai fuel-cell vehicle outside the Tokyo Hydrogen Museum. A clear advantage that battery electric vehicles have over fuel-cell cars is that BEVs are charged directly from the grid. | Chris Russell
At the same time, the use of batteries — the main competitor of hydrogen fuel cells — in a wide range of areas helps to make them cheaper and better, while there are fewer opportunities to scale-up fuel cell use.
As such, BloombergNEF’s Tengler only sees a possible role for hydrogen in long-distance trucking with heavy loads, while other experts are doubtful it has a future in road transportation at all, pointing to the much higher purchasing and operational costs of hydrogen trucks and the tight margins in the logistics industry.
“Both the capital expense for buying a hydrogen-powered car or bus and the operating expense of using it are higher, and just the laws of physics and economics are going to dictate that is going to stay that way, and most likely get better for batteries and worse for hydrogen over time in relative terms,” Tengler says.
The market has already spoken globally, and arguably has done so even in Japan, where the adoption of BEVs has been much slower. As of the end of March, there were only 1,633 hydrogen fuel-cell vehicles in the capital, Automobile Inspection & Registration Information Association data shows, versus 22,428 EVs. And in 2023, nationwide sales of standard-size passenger BEVs rose 39% to 43,991, according to the Japan Automobile Dealers Association, far exceeding the total for FCVs at 422.
This issue of inefficiency combines with hydrogen’s low energy density per unit volume to complicate, if not outright undermine, other plans for it. In the case of aviation and shipping, more space needed to store hydrogen means less space for passengers and cargo.
A Toyota employee works on a Mirai fuel cell vehicle at a factory in Toyota, Aichi Prefecture, in 2018. In 2023, nationwide sales of standard-size passenger BEVs rose 39% to 43,991, according to the Japan Automobile Dealers Association, far exceeding the total for FCVs at 422. | Reuters
This is also an issue when transporting hydrogen by ship, even after it is liquefied — a process that brings its own energy costs. That not only entails significantly larger ships, but because liquefied hydrogen is boiling — despite being kept at minus 253 degrees Celsius, 20 C above absolute zero — it would need to be vented, reliquefied or burned in the engines. That not only results in a further loss of energy, but if it is being released, it is also contributing to climate change because hydrogen is an indirect greenhouse gas — a study last year found that its warming effect is almost 12 times that of CO2.
“Making and shipping liquefied hydrogen wastes energy in such immense quantities that it doesn’t make any sense at all, and here’s the thing: Any country that is dependent on that energy will have a severe economic disadvantage — it cannot possibly afford the energy costs in the long term,” says David Cebon, professor of mechanical engineering at the University of Cambridge and a member of the Hydrogen Science Coalition. “The subsidies required to make that energy affordable to Japanese consumers and to industrial users will cause massive economic drag.”
Still, if Tokyo can get or produce the hydrogen, both Tengler and Cebon see a potential role for it in long-term energy storage, although Cebon advocates that Japan build out undersea electricity cables, like the one planned between Australia and Singapore.
Maximum impact
The world is wildly off track from the Paris Agreement goal of limiting warming to 2 C at most — the United Nations Environment Programme says that optimistically we are on course for 2.6 C even if national climate commitments are actually reached. This means that time is of the essence and effective decarbonization methods need to be prioritized.
Japan’s own policies will lead to emissions reductions of 31% to 37% compared with 2013 levels by 2030, against a 46% target, according to Climate Action Tracker.
A hydrogen refueling station operated by Tokyo Gas in Tokyo in 2020. Experts believe that the capital should be focusing on improving charging infrastructure for BEVs rather than focusing on hydrogen refueling stations. | Reuters
At the same time as it is promoting hydrogen, the Tokyo Metropolitan Government is also taking steps to boost renewables — part of its goal to have those energy sources provide about 50% of the capital’s power by 2030 — for example through a mandate that new homes and buildings must have rooftop solar panels from April next year. New apartment buildings will have to have EV chargers installed from that point as well, with the government increasing subsidies for them and targeting 60,000 chargers in the capital. This promises to add a significant amount of capacity: The capital had 2,916 charging stations as of the end of September.
However, at a base level of up to ¥425,000, the subsidy for EV purchases lags far behind the up to ¥1.1 million available for FCVs, without accounting for other FCV subsidies.
Rather than build out hydrogen refueling stations that will see very little use, Tengler suggests, “start building out very serious charging infrastructure everywhere for battery electric, because that’s the bottom bottleneck for battery electric.”
“By now, and certainly in a couple years time, battery electric is going to become cheaper than gasoline cars, but people might not want to buy them. Why? Because you don’t have anywhere to charge it.”
A graphic at the Tokyo Hydrogen Museum depicts the character Suison, who represents hydrogen, on a hydrogen-fueled bus | Chris Russell
While the outlook is dim for many hydrogen uses, there is an ongoing need for it due to its chemical properties, for example in the production of fertilizers, and there the use of low-emission varieties is vital. Annual production of low-emission hydrogen could reach 38 million tons in 2030, according to the IEA, although 69 million tons is needed under its net-zero roadmap.
“There’s absolutely no doubt we need to make green hydrogen for fertilizer, and we need to be doing that now, and governments need to be focusing on that, because that’s one of the key things we have to reduce emissions on,” says Cebon.
Still, weak demand stemming from the poor economics of hydrogen, BloombergNEF says, could see supply come in much lower — optimistically 16 million tons per year by 2030, against announced capacity of 70 million tons.
All of which means that the overall hydrogen picture looks quite different to the one that Tokyo is painting.
Japan’s national hydrogen strategy, which predates the country’s 2050 net-zero goal and has been concerned as much with energy security and economic efficiency as it has decarbonization, targets the realization of a “hydrogen-based society.” But Tengler argues that is the wrong way round.
“A hydrogen society is not necessarily a net-zero society, and it’s most certainly not the most efficient net-zero society,” he says. “If it is a net-zero society, electrification in the vast majority of industries is going to be cheaper than hydrogen.
“If hydrogen is the answer in a particular sector, then great, go and develop it there. But don’t start with the premise that you want a hydrogen society.”
Link: https://www.japantimes.co.jp/environment/2024/11/03/energy/tokyo-hydrogen-decarbonization-plan/
Minister Kgosientsho Ramokgopa on a working visit in Japan to position South Africa as a green hydrogen investment destination of choice, 9 to 11 Dec
Minister Kgosientsho Ramokgopa on a working visit in Japan to position South Africa as a green hydrogen investment destination of choice, 9 to 11 Dec
Dr. Kgosientsho Ramokgopa, the Minister of Electricity and Energy, is currently in Japan for a significant visit from 09 -11 December 2024.
This visit marks a crucial step in South Africa’s strategy to establish itself as a global leader in green hydrogen production and export, aligning with Japan’s ambitious net-zero goals.
Accompanied by high-level representatives, including the Premiers of the Northern and Eastern Cape, Dr. Zamani Saul and Oscar Mabuyane, the delegation showcases South Africa’s unified commitment to advancing flagship hydrogen projects such as Boegoebaai and the Coega Green Ammonia Project.
These projects are pivotal in transforming South Africa into a world-class hydrogen economy. During the visit, Minister Ramokgopa is engaging with key Japanese stakeholders, including major financial institutions and trading companies such as Mitsui, IHI, ITOCHU, MHI, and JERA.
The discussions focus on securing strategic investments, technical partnerships, and co- financing for large-scale hydrogen production, infrastructure development, and export capacity.
Minister Ramokgopa, states :
Japan’s pursuit of a sustainable hydrogen future presents a unique opportunity for South Africa,
“Our goal is to leverage Japan’s 2050 net-zero carbon objectives and its Hydrogen Society Promotion Act to position South Africa as a preferred supplier of green hydrogen and ammonia.This visit is not just about investment; it’s about building lasting partnerships that will facilitate our Just Energy Transition.”
The delegation focuses on several key objectives, including
- Attracting Investment for South Africa’s Hydrogen Economy: Engaging with Japanese financial institutions to secure financing for flagship projects and position South Africa as an attractive destination for equity investments.
- Strengthening Bilateral Relations and Policy Alignment: Collaborating with Japanese authorities to establish certification standards for green hydrogen and exploring policy-backed loans to advance South Africa’s energy transition.
- Developing a Domestic Market for Hydrogen Mobility: Promoting internal demand for green hydrogen through locally produced vehicles, thereby stabilizing the hydrogen economy.
This visit not only demonstrates South Africa’s commitment to executing flagship green hydrogen projects but also highlights the growing international confidence in our hydrogen potential.
By fostering partnerships with Japanese banks, development agencies, and trading houses, South Africa aims to solidify its position as a leading global supplier of green hydrogen and green ammonia.
The participation of key stakeholders and provincial leaders underscores our collective dedication to realizing South Africa’s hydrogen ambitions.
Link: https://hydrogen-central.com/minister-kgosientsho-ramokgopa-on-a-working-visit-in-japan-to-position-south-africa-as-a-green-hydrogen-investment-destination-of-choice-9-to-11-dec/
Japan cuts off Australian hydrogen supply – reports
Two large Japanese corporations have withdrawn their support for Australian hydrogen projects within days of each other – amid continued investment into fuel-cell cars by Toyota.
A multibillion-dollar deal to supply Japan with hydrogen appears to be in tatters.
First reported by The Age, a trial to supply Kawasaki Heavy Industries with ‘brown hydrogen’ – created from coal using converted powerplants – has been abandoned, according to Japanese news outlet Nikkei.
The plan involved converting brown coal to liquefied hydrogen in Victoria’s Gippsland region, to be transported via specially-built ships out of Hastings – providing Japan’s industry with a steady supply of clean-burning hydrogen.
Japanese car giant Toyota has been one of a handful of manufacturers pushing for hydrogen to be adopted as an alternative fuel – either replacing petrol with internal-combustion engines, or used in conjunction with fuel-cells to convert hydrogen to electricity.
However, it now appears Japan’s Kawasaki Heavy Industries has walked away from the deal with Victoria, with local media claiming it had become “difficult to produce hydrogen in Australia within the deadline”.
The Victoria Government provided $50 million of start-up capital to the program – in an effort to support jobs in the La Trobe Valley, home to coal-fired powerplants – while the Japanese Government pledged an investment of $2.35 billion.
It’s just the latest Australian hydrogen project to be abandoned by Japanese partners in a matter of days.
Nikkei Asia reports Japanese utility company Kansai Electric Power has also withdrawn from a project to produce green hydrogen.
Unlike brown hydrogen, derived from brown coal, green hydrogen is created from water – with the process to be powered by a combination of wind and solar power.
Named the Central Queensland Hydrogen Project (CQ-H2), the facility is set to be based in Gladstone, with significant support from state and federal governments, as well as large investments from overseas partners.
Kansai was part of a consortium with other Japanese firms including Iwatani and Marubeni, an infrastructure company from Singapore called Keppel, and the Queensland State-owned utility corporation Stanwell.
According to the report, Kansai cited higher costs of hydrogen production identified during engineering project planning, which had increased since the original feasibility study conducted in 2021.
It’s assumed the project will continue without the support of Kansai, given it has already received a commitment of $117 million from government and consortium partners, and is eligible for more than $2 billion in federal grants.
Link: https://www.drive.com.au/news/japan-cuts-off-australian-hydrogen-supply/
Japan’s TEPCO Looks to Make Hydrogen with Geothermal Power
Tokyo Electric Power Co. Holdings (TEPCO) is making strides in the renewable energy sector by planning to produce hydrogen using geothermal power in Indonesia. In a partnership with Indonesian state-run oil company Pertamina, TEPCO will install hydrogen production equipment at a geothermal power plant in eastern Indonesia. This initiative, set to kick off as early as 2027, is part of a broader strategy to tap into the growing demand for low-emission energy sources.
Meanwhile, major Japanese construction firm Obayashi is also jumping into the hydrogen game, with plans to produce hydrogen in New Zealand. These efforts align with Japan’s recent announcement to revise its hydrogen strategy, aiming to boost the annual hydrogen supply to 12 million tonnes by 2040. This target comes as a direct response to increasing competition in the global hydrogen market, with significant investments from the U.S. and Europe.
Japanese Prime Minister Fumio Kishida is keen on developing hydrogen supply chains and enhancing domestic regulations to meet these ambitious goals. By 2030, Japan plans to ramp up its hydrogen supply to approximately 3 million tonnes, up from the current 2 million tonnes primarily used by oil refiners. The longer-term vision is to expand this figure to 20 million tonnes by 2050, with hydrogen and ammonia playing key roles in Japan’s goal to achieve carbon neutrality.
Hydrogen is gaining traction as an alternative to fossil fuels, particularly in industries like energy, steel, and chemicals, which are seeking to lower their carbon footprints. Green hydrogen, produced through renewable electricity via electrolysis, is especially promising, offering zero emissions and the potential to power homes and businesses sustainably.
Japan has plans to invest $113 billion over the next 15 years to promote hydrogen development.
U.S. and Japan Clean Hydrogen Business Organizations Pledge Cooperation on Decarbonization at the Japan-U.S. Gulf Coast Clean Hydrogen Round Table Supported by Roland Berger
TOKYO–(BUSINESS WIRE)–Senior energy executives from Houston, Texas, USA, known as the “energy capital of the world,” met today with Japanese energy sector colleagues to discuss achieving Japan’s national decarbonization goals by creating a “hydrogen society.” Japan emphasizes clean hydrogen as a next-generation energy source but lacks the domestic resources to achieve that vision without international cooperation.
“The Japan-U.S. Gulf Coast Clean Hydrogen Round Table”
The Center for Houston’s Future (CHF), a Houston-based economic development organization and leader of the U.S. Gulf Coast’s clean hydrogen strategy, today co-hosted “The Japan-U.S. Gulf Coast Clean Hydrogen Round Table” with the Japan Hydrogen Association (JH2A). The JH2A has about 450 Japanese companies, local governments, and research institutes as members.
The meeting brought together energy experts from the public and private sectors of Japan and the U.S. to discuss this topic. CHF and JH2A also signed an MOU at the event, pledging cooperation. At the MOU signing ceremony held at the beginning of the event, Brett Perlman, CEO of the Center of Houston’s Future, and Hiroshi Fukushima, Secretary General of JH2A, served as signatories.
Roland Berger Japan, led by Managing Partner Yuzuru Joe Ohashi, sponsored and supported the event.
The Japan-U.S. Gulf Coast Clean Hydrogen Forum is part of a series of regular Trade and Investment Missions conducted by the Greater Houston Partnership (GHP), the largest chamber of commerce in the Greater Houston Area. This is the first visit to Japan and South Korea to promote a collaboration on hydrogen energy.
This Forum was held to build relationships against the background of a Japanese-U.S. collaboration and commercial transactions in the clean hydrogen business. The participants exchanged views on Japanese and U.S. energy policies, technology development, social implementation efforts, and more.
Brett Perlman, CEO of the Center of Houston’s Future, highlighted the growing interest of the U.S. Gulf Coast, one of the world’s leading hydrogen-producing regions, in the Japanese clean hydrogen market, commenting:
“More than 20 energy companies based on the U.S. Gulf Coast are participating in this visit, including major clean hydrogen suppliers, international EPCs, infrastructure companies, clean hydrogen equipment suppliers, and trading companies. This illustrates our shared understanding that collaborations with the Japanese market are essential to realizing a clean hydrogen society, including trade, technology alliances, and building global supply chains. As the world’s energy capital, we seek to become a central player in promoting decarbonization in the U.S. and the world. CHF is committed to working with Japanese businesses, government and NGOs to realize the vision of a hydrogen society.”
Hiroshi Fukushima, Secretary General, JH2A, commented on the significance of the MOU, stating:
“We are pleased to have signed this MOU with the Center for Houston’s Future, which plays an important role in the energy transition toward decarbonization in the United States and worldwide. With this, JH2A has now signed MOUs with 12 overseas organizations. JH2A will further strengthen its relationships with the industry’s international community and work with the public, government, local governments, and industry to ensure that Japan can quickly build a hydrogen value chain and hydrogen society.”
John Cypher, Vice President, International Investment and Trade with the Partnership, commented on the importance of the U.S.-Japan relationship:
“Japan stands as Houston’s seventh largest international trading partner, with trade between our regions nearly tripling over the past decade. This remarkable growth underscores not only the strength of our economic ties but also highlights Houston’s pivotal role as the energy capital of the world. As we continue to foster these dynamic trade and cultural relationships with Japan, we pave the way for future collaborations that will drive innovation and prosperity for both our regions.”
Koji Toyama, Partner, Roland Berger Japan, provided his view on the market, commenting:
“In recent years, hydrogen, considered a promising player for global decarbonization, has moderately slowed down in its expansion due to challenges such as rising costs. Given the circumstances, a closer look is required to ensure the economic viability of hydrogen businesses while continuing the important efforts in the medium to long term.” He continued: “Roland Berger has accumulated knowledge based on many hydrogen projects worldwide. We are working with clients worldwide on hydrogen energy, which is an unavoidable theme toward decarbonization. We will continue supporting clients’ commercialization and ensuring the viability of hydrogen utilization in all aspects of the business. This includes the decarbonization of companies, support of the management function for new businesses establishment, growth generation, and restructuring the portfolio to foster the transformation of Japanese companies.”
CHF, JH2A, GHP, and Roland Berger will drive the momentum created and shared at the Japan-U.S. Gulf Coast Clean Hydrogen Round Table and timely foster and capture various opportunities to develop the hydrogen market and realize the hydrogen society.
Japan abandons hydrogen for this fuel: Initium model will run on it
The transition towards other energy sources in the automotive market has been a trend in recent years, and hydrogen autos are one of the developments. However, the most recent development in Japan, the country’s departure from hydrogen, and its embrace of another fuel has been discussed.
Hyundai has even presented the Initium model, as hydrogen is not doomed to remain a fuel for rockets. It has a place in cars as well.
Japan’s New Direction: Moving Beyond Hydrogen Fuel for Cars
Hydrogen has been one of Japan’s main focuses, as the country believes in the future of hydrogen fuel. However, new information shows a shift from the use of hydrogen as the government and some industries look for better and more affordable solutions. Another problem is refueling, which is still not developed enough for hydrogen fuel to be used widely.
In this new approach, Japan targets options like battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs) in selected segments, including commercial vehicles. This shift results from the industry’s requirements and understanding that the shift to biofuels must be both viable and achievable.
On the other hand, Hyundai actively supports hydrogen technology in its Initium concept car. Although the automaker plans to launch the Initium in early 2025, it gives a sneak peek of what the hydrogen SUVs of the future will look like.
With a target driving range of 650 km, the Initium is aimed at both city and off-road use; Hyundai incorporates fuel cell technology into the car while including features such as large 21-inch wheels and a roof rack for off-road use.
The vehicle has been styled to reflect Hyundai’s new “Art of Steel” language, which was once demanding and elegant, ensuring that the vehicle in question will appeal to a broad cross-section of buyers.
Hydrogen’s Remaining Challenges: Why It Struggles Against Electric Vehicles
Hydrogen technology has come a long way, but there are still significant barriers to address to make hydrogen vehicles popular. The most significant issue is access to fueling stations, which are far less numerous now than EV charging stations.
Hyundai’s Initium, for instance, has a hydrogen-specific route planner that tackles the problem of the location of hydrogen refueling stations. Although hydrogen has benefits such as shorter refueling times than electric vehicles, it is up against the increasing market of EVs.
Still, Hyundai continues with the Initium model, proving that hydrogen is helpful for long-distance and large cars such as SUVs and trucks.
The fourth challenge is the issue of cost, which is still higher for hydrogen production than electricity from renewable sources. Green hydrogen generation is capital-intensive and needs extensive infrastructure and technology, which most countries are unwilling to invest in at the moment.
This economic reality retards the utilization of hydrogen vehicles, while such car manufacturers as Hyundai demonstrate the potential of hydrogen vehicles. To overcome this, governments and industries need to work to find ways to make the generation and distribution of hydrogen affordable.
The Future of Hydrogen in Sustainable Transport: Is It Here to Stay?
Although Japan is gradually moving away from hydrogen, the launch of the Hyundai Initium indicates that hydrogen will remain a key fuel in the long term for sustainable transport systems.
This integration of technological innovation and the design elements that can be experienced within the Initium demonstrates the possibility of hydrogen in solving the problem of emissions and presenting an eco-friendly solution to gasoline vehicles.
Hyundai also conveys safety, comfort, and long-range capabilities; thus, hydrogen has the chance to become one of the key contenders in the fight for environmentally friendly vehicles.
Hydrogen and electric power are still the major issues in the automotive industry as they are constantly developing. This means Japan’s withdrawal from hydrogen may alter the landscape of hydrogen and the world. Still, Hyundai’s Initium suggests this alternative fuel may not be doomed.
Whether hydrogen will ever be a major player in the fight to create sustainable transport is yet to be seen. However, cars such as the Initium ensure that hydrogen vehicles are still a very real and exciting possibility.
Link: https://www.ecoticias.com/en/japan-abandons-hydrogen-for-biofuel/9382/
Coca-Cola Bottlers Japan and Fuji Electric to Unveil World’s First Hydrogen-Cartridge-Powered Vending Machine at Osaka-Kansai Expo 2025
Coca-Cola Bottlers Japan Inc. and Fuji Electric Co., Ltd. will unveil the world’s first (Note 1) vending machine that uses hydrogen cartridges to generate power (hereinafter referred to as “this vending machine”) at EXPO 2025 Osaka, Kansai, Japan (hereinafter “Osaka-Kansai Expo 2025”).
Coca-Cola Bottlers Japan and Fuji Electric have developed a vending machine that uses hydrogen as its power source, which is expected to serve as a new alternative energy that could further drive the ongoing efforts to reduce CO2 emissions with an aim to achieve carbon neutrality by 2050. As the next-generation vending machine that is unaffected by weather or location and emits no CO2 while operating, one unit of this vending machine will be installed at Osaka-Kansai Expo 2025 site that is conceptualized to be the “People’s Living Lab” where advanced technologies from Japan and abroad will be brought together, offering many visitors an opportunity to experience “the vending machine of the future.”
Coca-Cola Bottlers Japan and Fuji Electric intend to continue contributing to the realization of a decarbonized society through the development of environmentally friendly vending machines
- Applying hydrogen energy to vending machine
Hydrogen energy is highly compatible as a power source for vending machines because it allows the machines to run in any weather conditions and does not require much space to operate them. Challenges to address going forward include the infrastructure for supplying hydrogen and optimization of the overall cost.
- Operating image of this vending machine
This vending machine consists of two units, the vending machine itself and a generator. A hydrogen cartridge is loaded in the generator and electricity is generated through a chemical reaction between hydrogen and oxygen in the air. The generated electricity is then stored in a battery from where it is transmitted to the vending machine and used to run the machine.
Hydrogen energy is highly compatible as a power source for vending machines because it allows the machines to run in any weather conditions and does not require much space to operate them. Challenges to address going forward include the infrastructure for supplying hydrogen and optimization of the overall cost.
Operating image of this vending machine This vending machine consists of two units, the vending machine itself and a generator. A hydrogen cartridge is loaded in the generator and electricity is generated through a chemical reaction between hydrogen and oxygen in the air. The generated electricity is then stored in a battery from where it is transmitted to the vending machine and used to run the machine.
Japan’s plan for net zero increasingly rests on a big hydrogen bet
TOKYO — Earlier this year, Japan’s top opera singer sat down for a chat with the head of one of her country’s largest energy companies at a public event in Vienna, Austria, where the young singer is based.
The buttoned-down energy executive and Japanese soprano may have seemed odd partners to discuss an important question: “Is Japan a renewable-energy laggard?”
Hisahide Okuda, president and chief executive of JERA, one of Japan’s biggest operators of natural gas and coal power plants, did not mince words.
“That’s just not the case,” he told Ayako Tanaka, the singer.
Okuda cited Japan’s success in solar power. He then went on to explain a challenging, controversial emissions reduction route that the Japanese government believes is the best bet to further decarbonize, at least for many countries in Asia.
Rather than closing emissions-spewing coal- and, eventually, gas-fired electricity generators and replacing them with wind and solar, as many countries are attempting, top Japanese executives and officials are hoping to keep these generators going, but gradually replace the coal and gas with low-carbon ammonia, hydrogen and biomass.
This approach, expected to become a core part of Japan’s updated national energy strategy next year, could put much of Asia on a different decarbonization path than North America, Europe, Australia and elsewhere. In the United States and Europe, natural gas and renewable energy sources have pushed aging coal plants, the biggest emitters of planet-warming carbon dioxide, into early retirement. But many Japanese officials don’t see that as a workable plan in much of Asia.
“Asian countries have been growing rapidly and their dependence on fossil fuels is increasing,” Hideyuki Umeda, director for international policy on carbon neutrality at Japan’s Ministry of Economy, Trade and Industry (METI), told a gathering his agency organized in June at the Asian Development Bank in Manila, the Philippines. “Energy transition policies should be tailored to those circumstances.”
This is the first in a series from Bill Spindle this week about Japan’s energy plans. Stay tuned for upcoming articles on Japan restarting its idle nuclear plants, the growing carbon capture and storage trade in Asia and Bill’s reflections on reporting in Japan in the 1990s and today.
Making a big bet on the future of hydrogen as a clean power source is risky, however, as hydrogen markets have struggled to get off the ground worldwide and dealing with the gas is technologically and logistically tricky. Indeed, the idea has many critics.
The Renewable Energy Institute, an advocacy group in Japan, argues the country should abandon the hydrogen plan in favor of renewables. Japan has many large-scale solar facilities, but the Institute says the government is ignoring the potential of solar power on rooftops and underplaying the potential for wind, especially offshore. The group argues Japan could generate 80% of its electricity from renewable sources by 2035, up from about 10% today.
“It’s critical to increase the amount of renewable energy produced domestically,” said Teruyuki Ohno, executive director of the Institute. “But I don’t think this is even being discussed.”
Fossil fuel landscape
Currently, Japan’s power sector is 60% fueled by coal and natural gas, split roughly equally, and accounts for about half the country’s greenhouse gas emissions, according to the International Energy Agency. Nuclear power accounts for less than 6% after the country shut down most of its reactors in the wake of the 2011 Fukushima disaster (Japan is now trying to restart some of those reactors).
Many environmental groups believe shuttering the massive fleet of coal-fired plants in Asia as soon as possible is critical to the world reaching its climate goals. Groups ranging from the Asian Development Bank to the Rockefeller Foundation and the Monetary Authority of Singapore have struggled with ways to retire coal plants early.
It’s an especially daunting challenge because Asia’s coal-fired power plants are young; many have decades left in them and the electricity they’re contracted to provide often must be paid for whether used or not.
But the Japanese government, alongside some of the country’s biggest corporate and financial institutions, believe low-emissions hydrogen offers a path forward. They argue using existing power plants longer, while gradually switching to low-carbon hydrogen, is the best solution for heavily coal- and gas-dependent countries, including India, Indonesia, Malaysia, Vietnam, the Philippines and Singapore.
Countries would need to make extensive use of carbon capture to reduce emissions during the decades it could take to create a regional clean-hydrogen market, refit coal and gas generators to work with hydrogen or ammonia and then gradually substitute the lower-carbon fuels. While Japanese leaders say renewable energy and nuclear power should be expanded as much as possible, they argue those will not be able to meet the energy needs of Asian economies.
“In developed countries such as in Europe, attention is focused on the renewable energy,” Soichiro Niwa, general manager of JERA’s Energy Transition Division told the conference audience in Manila in June. “But in Japan, which is island country, and in Asian countries, JERA believes that promoting decarbonization while maximizing the use of existing thermal power generation facility is the realistic path.”
Japan’s overall decarbonization goal is to cut carbon emissions 60% by 2035 from 2013 levels.
Chorus of critics
Not long ago, hydrogen was touted as a “Swiss army knife” solution, able to handle the decarbonization of a wide range of industrial and energy processes. But the gas is proving too expensive and unwieldy to use in power generation, critics say.
“Making hydrogen to burn in a turbine makes absolutely no sense,” says Dennis Wamsted, an analyst with the Institute for Energy Economics and Finance, which promotes clean energy. “You’ve made it with renewables that should have just gone directly into the grid, or you made it with [natural] gas, maybe with carbon capture, which would be even more expensive.”
Even companies promoting the technology acknowledge the costs will be daunting initially and require government subsidies. But they say several pilot and demonstration projects show the technology works and at least one commercial scale operation is moving forward, according to JERA and other companies involved.
The companies aim to refit coal and gas plants to operate with a 50% mix of either hydrogen and gas or ammonia and coal by 2030; they are targeting 100% hydrogen or ammonia by 2050, they say.
To achieve that goal, the cost of clean hydrogen would have to fall dramatically, through a massive and rapid scaling of a global hydrogen market. Large fleets of specialized ships would be needed to transport either liquid hydrogen, or a product derived from hydrogen, such as ammonia. And port facilities would have to be built to off-load the toxic and highly flammable chemical and get it to the generation plants safely.Efforts to build a global hydrogen market are struggling to get off the ground, even in the U.S. and Europe, despite massive government subsidies on offer to try to make it happen. South Korea, for example, which also is planning to deploy hydrogen to generate electricity, has recently struggled to find providers at a price it was willing to pay. Despite Japan’s confidence in a hydrogen-based energy future, doubt remains widespread. Among the naysayers was an analysis of Japan’s plan by Bloomberg NEF in 2022, which concluded it was “unlikely to become an economically viable path for Japan to reduce power sector emissions.”
Japan’s energy giant to invest $200 million into green hydrogen production in Queensland
Japan’s energy major ENEOS has decided to set up a green hydrogen production plant with a $200 million investment in Queensland, Australia. Queensland Government’s Ministry for Finance, Trade, Employment and Training revealed the planned investment by ENEOS on December 3, 2024. As part of the investment, the Japanese company proposes to build and run a hydrogen demonstration plant at Bulwer Island, on approximately 6,000 square meters of land at the former BP refinery site close to the Port of Brisbane. Construction of the plant is scheduled to begin next year. The plant will produce up to 680 kilograms of green hydrogen per day, starting from 2026. The green hydrogen will be in the form of methylcyclohexane (MCH), a hydrogen carrier in liquid form that can be transported at room temperature and normal pressure, making it easy to store and transport. A portion of the produced hydrogen will be shipped to Japan. Along with ENEOS, partners in this project are Japanese companies such as Chiyoda Corporation, Sumitomo Electric Industries, TOPPAN, and AGC as well as Brisbane companies such as GPA and GRPS. As disclosed, this project is a demonstration project commissioned by the New Energy and Industrial Technology Development Organization (NEDO). It will run for two years and is expected to create over 100 new jobs in Brisbane between the start of construction and the end of the demonstration period. The project is also supported by the $28 billion Green Innovation (GI) Fund established by the Japanese Ministry of Economy, Trade and Industry to help the country achieve carbon neutrality by 2050.
Japan’s Hydrogen Society Promotion Act comes into effect
Further to its enactment and promulgation in May 2024, the Hydrogen Society Promotion Act (the “Act”)1 – Japan’s first law regulating businesses relating to hydrogen and its derivatives – came into effect on October 23, 2024. On the same day, both METI2 and JOGMEC3 launched their respective webpages dedicated to the Act.
The overarching goal of the Act is to facilitate the expansion of the use of low-carbon hydrogen and its derivative products. One of its objectives is to provide support to approved businesses specifically through the “Support Focusing on the Price Gap” (“CfD Scheme”) and the “Support for the Development of Hubs” (“Hub Support Scheme”).
CfD Scheme
Subsidies under the CfD Scheme will be awarded to suppliers of low-carbon hydrogen and its derivatives (whether produced domestically or imported from overseas) for use in Japan, targeting the price gap between the costs of domestic or overseas hydrogen production and transportation and the price of conventional fuels.
To apply for the subsidies under the CfD Scheme, applicants must first apply to METI and obtain approval of their business plans, and then apply to JOGMEC for the subsidies themselves. Please refer to the flowchart diagram below. Though the details of the JOGMEC process are not yet available, JOGMEC plans to release its subsidies application guidelines once finalized, which we expect to be in the next few weeks.
View full image: Subsidies Application Flowchart
Hub Support Scheme
Subsidies under the Hub Support Scheme will be awarded to developers of domestic transport and storage facilities needed for the use of low-carbon hydrogen and its derivatives, for a portion of the costs for Front-End Engineering Design (FEED), engineering, and construction.
The application process for the subsidies under the Hub Support Scheme will likely be similar to the process for the CfD Scheme described above.
Special Regulatory Rules
In addition to the above subsidies, applicants that have obtained approval from METI under the Act will also be eligible for special regulatory arrangements, including:
- deemed approval and notification exemption under the Port and Harbour Act;
- special approval under the High Pressure Gas Safety Act; and
- mandatory approval under the Road Act.
METI Approval Process
METI has released the forms that must be used for the application for approval of business plans. These forms require, among other things, information relating to: (i) applicant entity; (ii) low-carbon hydrogen to be supplied; (iii) target figures for supply and use; (iv) methods of supply, use, and storage; (v) supply period; (vi) relevant infrastructure; (vii) development team; and (viii) project cost.
These forms along with its attachments must be submitted electronically through the government’s “G-Biz” portal.4 METI will notify once the portal becomes available and will designate a specific time period for accepting business plans through the portal.
METI has released its responses to Frequently Asked Questions in relation to the CfD Scheme5 and will accept requests for consultations and queries regarding the application process.
Future Outlook
The formal enforcement of the Hydrogen Society Promotion Act represents a significant step forward in the country’s commitment to achieving its carbon neutrality goals. By facilitating the development of a stable and predictable environment for hydrogen, the subsidies provided under the Act are expected to have a far-reaching impact on both domestic and international market players and investors.
We expect that METI will commence its business approval application process and that JOGMEC will release its subsidies application guidelines, within the next few weeks. Accordingly, businesses that are looking to apply for the subsidies under the CfD Scheme or the Hub Support Scheme will need to review the forms released by METI in relation to the business plan approval process and to consider whether a consultation process with METI may be helpful for their potential application.
Link: https://www.whitecase.com/insight-alert/japans-hydrogen-society-promotion-act-comes-effect
China Begins Construction of Landmark $290M Green Hydrogen Project in Ningxia Region
Construction has started on the first of three large-scale green hydrogen facilities in Ningxia, China, aiming to produce 16,500 tonnes of green hydrogen annually for use in transportation and the creation of green ammonia and methanol. This initiative represents a significant step in integrating renewable energy sources like wind and solar into the region’s industrial framework.
The Ningxia autonomous region in northern China is now home to the first phase of a significant green hydrogen project within the Taiyangshan Development Zone in Wuzhong City. The initiative, known as the “Ningxia Taiyangshan Green Hydrogen Production, Storage, Transportation, and Utilization Integrated Project,” is spearheaded by Seraphim Reshape (Ningxia) Hydrogen Power Energy Co., Ltd., a collaboration between Shanghai Reshape Group and Jiangsu Seraphim.
With an investment of 2.086 billion yuan ($285 million), the first phase of the project includes the development of an electrolyzer facility designed to produce 16,500 tons of hydrogen and 132,000 tons of green oxygen each year. Additionally, it will feature an extensive infrastructure, including a green oxygen recovery unit, transmission pipelines, 17 spherical hydrogen storage tanks of 1,875 cubic meters each, a refueling platform, and a range of supporting environmental and safety facilities. Upon reaching full operational capacity, the project aims to generate annual revenue of 328.5 million yuan ($45 million) and contribute approximately 38 million yuan ($5.2 million) in value-added tax.
Xi Juntao, general manager of Jiangsu Seraphim Power Development Co., Ltd., expressed enthusiasm about the project’s potential: “Ningxia, including Wuzhong, has very rich wind and solar resources. The core of the ‘Sun Mountain Model’ is to combine Sun Mountain’s resource endowment with our industry-leading product technology, and through extensive cooperation in the industrial chain, build a complete hydrogen energy industry ecosystem locally, and realize a business model of integrated development of wind, light, hydrogen, storage, transmission and use, reduce costs in each link, make hydrogen energy have commercial value, and thus achieve a win-win situation for all parties.”
The project is part of a broader initiative within the Taiyangshan Development Zone, designated as one of the 11 “green power parks” pilot parks in Ningxia. The zone is committed to fostering the green transformation of its industrial structure, optimizing the integration of wind, photovoltaic, and energy storage projects, and accelerating the pilot construction of “green power parks.” This initiative aims to transform the region into a pioneer city for green development and a comprehensive demonstration city for energy.
The ongoing developments in the Taiyangshan Development Zone include the upcoming construction of two additional hydrogen projects in early 2025: the Guohua New Energy “‘hydrogen-ammonia valley’ green energy low-carbon industrial chain integration project” with an annual production capacity of 8,000 tons and Beijing Han Hydrogen’s “annual 12,000-ton water electrolysis hydrogen production project.”
China set to lead global electrolyser installations in 2024
China is set to lead global electrolyser installations with nearly 70% of projected capacity this year, according to the International Energy Agency’s (IEA) Global Hydrogen Review 2024. Electrolysers, which use electricity to split water into hydrogen and oxygen, are a critical technology for producing low-emissions, or “green” hydrogen, from renewable or nuclear electricity.By the end of 2023, installed electrolyser capacity reached 1.4 GW globally, with projections indicating it could rise to 5 GW by the end of 2024, primarily driven by projects in China, the report notes.Despite global hydrogen demand reaching 97 million tonnes in 2023, green hydrogen production remains below 1 million tonnes, with most of the demand still being met by “grey” hydrogen produced from fossil fuels. In China, green hydrogen similarly accounts for just 1% of total hydrogen production. According to the IEA report, 60% of the world’s electrolyser manufacturing capacity is currently located in the country. With expanding production capabilities, costs for electrolysers are expected to decrease further, following a similar trend observed in the solar photovoltaic and battery industries. As local governments announce ambitious plans, China’s hydrogen sector is anticipated to grow rapidly. However, slow infrastructure development and weak consumption demand could pose risks of overcapacity, the South China Morning Post noted last year. This trend also extends to the export sector. In late August, China Daily reported that Chinese hydrogen electrolyser exports have been experiencing an unprecedented surge due to growing demand for sustainable solutions in Europe and the Middle East. However, in September, the European Union announced that it will take steps to exclude Chinese-manufactured electrolysers from an upcoming auction in a bid to reduce competition.
“The development of China’s hydrogen industry is unbalanced”, said Guo Jianzeng, a director of the 718th Institute of the China Shipbuilding Industry Corporation, its research-focused arm. He added that the bottleneck in hydrogen storage and transportation has not been paid enough attention, while investment in areas such as electrolysis and hydrogen fuel cells is currently overheated.
Some in the industry have sought to assuage these concerns. They say that the “capacity” in “overcapacity” refers to the planned capacity and not actual output, and that whether the capacity will be implemented remains uncertain.
“Due to the complexity and bespoke nature of electrolyser equipment, manufacturers do not choose to produce more products for inventory,” noted a Chinese hydrogen company chief. “They will only produce when there are orders.”
Link: https://www.reccessary.com/en/news/world-market/china-electrolyser-installations-2024
Hangyang opens new ‘hydrogen energy island’
The site located in southern Shanxi Province provides a wide array of alternatives, including hydrogen, electricity, and LNG refueling services.
© Hangyang LinkedIn
Hangyang has recently commissioned a new refueling facility located in southern Shanxi Province, China, a 9,000 kg/day ‘Hydrogen Comprehensive Energy Island.’
This project provides hydrogen, electric charging, and liquefied natural gas (LNG) refueling services for Jinnan Steel’s logistics fleets and nearby factories. The site fuels over 400 hydrogen-powered trucks daily, reducing annual carbon emissions by 120,000 tonnes.
Using high-purity hydrogen sourced from coke oven gas through pressure swing adsorption (PSA)and delivered directly via pipeline, the company reduced supply costs to just 30% of traditional methods.
This marks Hangyang’s second hydrogen collaboration with Jinnan Steel, following the launch of China’s largest commercially operated hydrogen refueling station in 2022.
Link: https://www.mobilityplaza.org/news/39318
Hydrogen station provides green fuel for heavy trucks
HOHHOT — At a hydrogen production and fueling station of Shengyuan Energy Group in the Inner Mongolia autonomous region, hydrogen-powered heavy trucks drive in and out, replenishing their fuel supply.
The hydrogen produced at the station, located in Ejin Horo Banner in the city of Ordos, is close to 100 percent purity. “We can produce 2,000 cubic meters of hydrogen per hour, and the daily hydrogenation capacity is 1 metric ton, meeting the demand of 60 hydrogen-powered trucks,” said Su Jianjun, head of the hydrogen station.
The station is one of 450 similar facilities nationwide, and reflects the rapid growth of the hydrogen industry in Inner Mongolia.
As of April, the region had approved the implementation of 39 hydrogen production projects integrating wind and solar power, supporting 21.3 million kilowatts of new energy and 855,000 tons of green hydrogen. The current mainstream hydrogen production method involves water electrolysis using industrial by-products. However, the process is accompanied by carbon emissions because the electrolytic water consumes fossil energy.
The real green hydrogen can be made using renewable energy such as solar and wind energy instead of fossil energy to power the electrolysis. The abundant wind and solar energy in the region can fuel the continuous and reliable production of green hydrogen.
According to the region’s energy bureau, the region added 8.35 million kilowatts of installed new-energy capacity from January to May, ranking first in China.
By the end of May, the total installed capacity of new energy in the region reached almost 102 million kilowatts, accounting for 45 percent of the total installed capacity of electric power. This scale of new-energy capacity has laid a solid foundation for the development of green hydrogen in the region.
The region’s economic development has relied on energy for a long time, facing the limits of resource depletion, environmental pollution and industrial structure imbalance. Therefore, it made efforts to cultivate the hydrogen industry and build a clean, low-carbon, safe and efficient modern energy system.
In February and June, the region released policies to accelerate the development of the industry. Since then, more than 20 enterprises, including the State Power Investment Corporation and Shanghai Hydrogen Propulsion Technology, have set up hydrogen projects.
“The annual capacity of our fuel cell stacks has reached 1.5 million kilowatts, while the power system capacity amounted to 10,000 sets per year,” said Yang Zhen, deputy general manager of Ordos Guohong Hydrogen Energy Technology.
Hydrogen is a type of secondary energy that can be widely used, playing an important role in building a clean, low-carbon, safe and efficient energy system. It is expected to contribute to achieving carbon peak and carbon neutrality.
In a plan on the sector’s development for the 2021-2035 period released in March 2022, China defined hydrogen energy as a significant part of its future energy mix.
Xinhua
Link: https://www.chinadaily.com.cn/a/202410/24/WS6719a424a310f1265a1c953a.html
China may become the leading producer of green steel by 2030 – forecast
The country’s competitive advantages are renewable electricity and green hydrogen production capabilities
By 2030, China could become the largest producer of green primary steel thanks to its competitive advantages in renewable electricity and green hydrogen production. Such a forecast is provided by the non-governmental organization Transition Asia.
The organization believes that policy discussions and modeling for the country’s next five-year plan should codify these ambitions and formalize subsidies.
The recently announced production of hydrogen-based DRI by almost all major steel companies, notes Transition Asia, indicates that China should reach production volumes of low-carbon primary steel of 15-20 million tons per year by 2030. However, within the country there will be various regional leaders and outsiders.
The driving force for the Chinese market in the near term will be demand from the country’s electric vehicle manufacturers and strong signals of interest in green steel, rather than international carbon price adjustments. These effects will be felt throughout the supply chain, all the way to suppliers of high-grade iron ore.
The current EAF share target of 15% by 2025, the organization believes, should be increased to 20% by 2030.
We do not consider the suspension of the replacement mechanism for steelmaking capacities or the consolidation of the market as barriers to the transition to electric steelmaking for both secondary and primary “green” steel,» Transition Asia notes.
Currently, most of the hydrogen in China’s limited DRI projects comes from either coke batteries or natural gas, with only a limited amount coming from renewable electricity sources.
However, a massive increase in the production of green hydrogen is needed and predicted in China. The medium- and long-term plan for the development of the country’s hydrogen industry (2021-2035) is quite complex. In particular, it sets targets for the production of hydrogen from renewable sources in the amount of 100,000 to 200,000 tons per year by 2025 as part of supply-side initiatives.
It is expected that by the end of this year, China will install 2.5 GW of electrolyzer capacity, which will allow the production of 220 thousand tons of green hydrogen per year, and will exceed the target indicators a year ahead of schedule.
As GMK Center reported earlier, in July 2024, China updated the road map for achieving carbon neutrality in steel industry. The country maintains a goal of reducing carbon dioxide emissions in the steel industry by 40% in 2040, by 85% in 2050 and by 95% in 2060. Limited investment cycles and expensive energy carriers (natural gas and hydrogen), which are needed in the long term, are considered problems on the way to decarbonization for Chinese steel producers.
Link: https://gmk.center/en/news/china-may-become-the-leading-producer-of-green-steel-by-2030-forecast/
Hydrogen powered vehicles under the spotlight at CIIE
Shen Mengdan / SHINE
The Nexo, Hyundai’s new hydrogen-powered vehicle.
Electric vehicles are now well known to the public while hydrogen-powered vehicles (HFCV) remain a relatively niche field.
HFCV vehicles, which produce only water vapor on the road, are under the spotlight at the ongoing China International Import Expo.
Foreign experts told a forum on the future of global new-energy vehicles that hydrogen as a new-energy source is challenging but had great potential. Two car companies are showing hydrogen-powered vehicles at the event.
Hyundai is showing its Nexo vehicle, with a powertrain consisting of a hydrogen fuel system, a hydrogen fuel cell, and an electric motor.
Its official launch will be next year.
Hyundai has delivered 14 units to the National Energy Group, which started mass production of hydrogen fuel systems last year.
Toyota is showing its TL Power 150 high-power hydrogen fuel cell system and 260kw+ fuel cell system, which are mainly used in buses and trucks as a green and clean alternative to diesel vehicles.
Shen Mengdan / SHINE
Hyundai Motor Group’s hydrogen-powered bus on display at the CIIE.
The automotive industry is keeping exploring new-energy solutions, with hydrogen vehicles having great potential for development due to their zero emissions high efficiency, and safety.
“China’s hydrogen energy development is still facing many challenges, such as industry standards and norms that need to be improved. The hydrogen energy industry chain system is not yet complete, and other issues,” said Li Jifeng, director of the climate policy research office of the State Council’s development research center.
“In the future, we should accelerate the construction of a standard system and create a complete hydrogen energy industry chain,” Li said
In 2022, China released an official medium and long-term plan for the development of the hydrogen energy industry (2021-2035), splitting development of hydrogen vehicles into three phases – initial demonstration, accelerated promotion, and large-scale application.
Next year, according to the plan, the number of hydrogen vehicles in China will reach 50,000; and in 2035, hydrogen-powered vehicles will be fully commercialized.
From January to July this year, China produced 3,673 hydrogen-powered vehicles and sold 3,422, with production and sales increasing by 28 percent and 25.5 percent year on year respectively, according to official data.
Link: https://www.shine.cn/biz/auto/2412039215/
ICIS – INSIGHT: China Hydrogen Investments to Gain Momentum on Energy Law
SINGAPORE (ICS)–China’s Energy Law that will take effect in January 2025 is expected to drive investments in the domestic hydrogen sector as it will provide further policy support, and enable technological developments aimed at expanding the scope of hydrogen applications.
Under the law, hydrogen will no longer be classified as a dangerous chemical product, thus, removing restrictions around its applications, production and storage.
China’s hydrogen sector is currently in the demonstration phase, mainly focusing on commercial vehicle application.
When the new legislation kicks in, hydrogen production and refuelling stations and storage facilities will be allowed outside designated chemical parks, and that is expected to address infrastructure gaps in the sector.
Hefty transportation cost due to lack of hydrogen refuelling stations and long-distance pipelines has been one of the key bottlenecks that impede hydrogen adoption in China.
Storage and transportation account for about 30% of end-use hydrogen costs, limiting hydrogen applications in urban public transport and long-haul sectors.
With the new energy law, development of the Chinese hydrogen sector is expected to gain pace between 2026 and 2030. (See ICIS Hydrogen Topic Page for details)
The China Energy Law was approved on 8 November at the 12th session of the Standing Committee of the National People’s Congress (NPC), China’s top legislature.
It fills a legislative gap since China – despite being the world’s largest energy producer and consumer – had long lacked an overarching energy law.
Currently, there are several standalone energy-related laws and regulations in the country, including the Electricity Law, the Coal Law, the Energy Conservation Law, and the Renewable Energy Law, but lacked a legislation that covers the whole energy industry until now.
The recently launched Energy Law will provide a much-needed framework for strengthening the legal foundation of the energy sector, ensuring national energy security and promoting renewable and low-carbon transformation.
The law includes nine sections, covering stipulations on energy planning, development and utilization, energy market systems, energy reserves and emergency measures, energy technology innovation, supervision and management, legal responsibilities, supplementary provisions.
Insight article by Patricia Tao and Yu Yunfeng
Trina Green Hydrogen Launches First 1GW Electrolyser Production Line in Eastern China
Trina Green Hydrogen has initiated its first 1GW electrolyser production line at its new facility in Yangzhou, marking a significant step in China’s hydrogen energy sector.
The launch of this production line is part of a larger plan to expand the facility’s capacity to 4GW, aiming to support China’s carbon neutrality goals with advanced hydrogen production technologies.
Advanced Production Capabilities Set to Transform Hydrogen Energy Sector
Trina Green Hydrogen, a subsidiary of Trina Solar, one of the world’s leading solar panel manufacturers, has officially started operations at its new electrolyser production line in Yangzhou, eastern China. The production facility, known as the Tianhe YuanHydrogen Yangzhou Production and R&D Base, was inaugurated in a ceremony attended by key figures such as Yangzhou Municipal Party Committee Secretary Wang Jinjian, China Industrial Development Promotion Association Vice President Shi Lishan, and Tianhe YuanHydrogen Chairman Gao Haichun.
Located in the Yangzhou Comprehensive Bonded Zone, the facility represents a substantial investment of RMB 720 million and spans nearly 150 acres with a building area exceeding 60,000 square meters. This first phase includes a 1GW production line for alkaline water electrolysis hydrogen production equipment, with future plans to increase the total capacity to 4GW. This expansion is set to make the Yangzhou base the most modern and comprehensive automated and intelligent production base in the world.
Commitment to High-Quality Hydrogen Development
During the ceremony, Gao Haichun highlighted the significance of accelerating hydrogen energy development to achieve China’s “carbon peak and carbon neutrality” goals and its role in the global energy transition. Trina Hydrogen is dedicated to advancing research and development in critical technology areas and fostering ecological cooperation across the hydrogen energy industry chain—from production and storage to transmission and utilization.
Shi Lishan emphasized the importance of hydrogen production via water electrolysis as a key solution for the large-scale development of new energy, noting the diverse applications of hydrogen as both a raw material and an energy source. The completion of this production line marks a significant advancement in China’s hydrogen energy sector.
Yangzhou’s Hydrogen Energy Industry Leadership
Zhang Li, secretary of the Party Working Committee of the Yangzhou Economic and Technological Development Zone, expressed that Yangzhou has an early start and a relatively complete industrial chain in the hydrogen energy sector. The establishment of Tianhe Yuan Hydrogen in Yangzhou signifies a major upgrade to the local hydrogen energy industry, positioning the city as a leader in hydrogen energy technology and contributing Chinese solutions to global environmental and energy challenges.
Innovative and Smart Production Line The newly launched production line boasts the world’s largest alkali tank production capability and features advanced technology such as a 10MW equipment testing platform, an electrochemical/anti-corrosion production and research base, and a CNAS-certified laboratory in the hydrogen energy field. The 1GW line integrates cutting-edge technologies including automatic control, acoustic and optical detection, and big data analytics to achieve a “4 100%” intelligent production line—100% automation, 100% quality self-determination, 100% product digitization, and 100% information sharing.
Strategic Partnerships and Bright Future At the launch, Tianhe YuanHydrogen also signed strategic cooperation agreements with Ruilu Hydrogen Energy (Group) Co., Ltd. and Spain’s GHENOVA Group. These partnerships aim to leverage brand, technology, and customer advantages to establish a long-term, mutually beneficial cooperation framework.
With the hydrogen energy industry still in the early stages of development in China, this sector holds broad prospects for growth. It requires close collaboration among all players in the industry chain, bold innovation, and active exploration to continue advancing the hydrogen energy industry.
Link: https://fuelcellsworks.com/2024/10/28/fuel-cells/trina-green-hydrogen-launches-first-1gw-electrolyser-production-line-in-eastern-china
Major leap seen for H2 energy industry
By 2060, this common element should be cheaper than its carbon-intensive, less-green counterpart
Workers assemble hydrogen fuel cell engines on a production line in Luoyang, Henan province in November 2024. (ZHANG YIXI / FOR CHINA DAILY)
As China positions itself as a global leader in the production and utilization of green hydrogen, industry experts project a transformative leap in the nation’s hydrogen sector, driven by declining costs, policy support and technological innovation.
Expanding the application of green hydrogen will be crucial for China to achieve deep cuts in carbon emissions while ensuring domestic energy security, as hydrogen not only provides a clean, emission-free energy source, but also offers valuable energy storage capabilities, they said.
Global consultancy Rystad Energy expects the share of green hydrogen in China to continue growing in the years to come, especially since it is installing new electrolyzer capacity at a world-leading pace every year, with similar trajectories seen in the solar PV and wind industries, which China continues to lead, it said.
Green hydrogen, produced using renewable energy, will dominate China’s hydrogen supply in the coming decades, accounting for 90 percent by 2060 from the current negligible 0.2 percent of total production, said Liu Shiyu, vice-president of the China Electric Power Planning and Engineering Institute.
China, already the world’s largest producer and consumer of hydrogen, accounted for over one-third of global output in 2023, with production reaching 35 million metric tons and expected to nearly triple to 100 million tons by mid-century, said Liu.
However, 80 percent is derived from fossil fuels, while the remaining 20 percent comes from industrial byproducts, making green hydrogen production still in its infancy, with just 60,000 tons produced annually as of 2023, he said.
Hydrogen in China is mainly produced from fossil fuels without using carbon capture, utilization and storage technology, ending up with massive carbon emissions during the process known as “gray hydrogen”. “Blue hydrogen” has its carbon emissions captured and stored, or reused.
Despite this modest starting point, China’s green hydrogen sector holds immense growth potential, said Liu, predicting it could become a flagship export sector in the years to come, rivaling the nation’s globally recognized innovations in electric vehicles, solar panels and battery storage.
China, being the world’s largest producer and consumer of hydrogen, holds significant strategic importance in fostering the development of sustainable green hydrogen, said Guo Liejin, a professor at Xi’an Jiaotong University.
Guo believes that more efficient, low-cost and large-scale green hydrogen and electricity co-production is imperative.
The process of producing hydrogen from renewable energy resources and using it as a carrier for energy storage, which can later be converted back to electricity, is considered a pivotal option for deep decarbonization at the terminal end, and has been gaining more international attention for its potential as an emissions-free fuel.
With China identifying hydrogen as a key element in its low-carbon energy transition strategy, Rystad Energy projects the installation of approximately 2.5 gigawatts of hydrogen electrolyzer capacity by the end of the year. This capacity is expected to produce 220,000 tons per annum of green hydrogen, 6-kilotons-per-annum more than the rest of the world combined, it said.
According to the institute, green hydrogen costs have already halved over the past five years, dropping to 22 yuan ($3) per kilogram in 2024 from 42 yuan per kg in 2019.
The institute forecasts further reductions, with production costs expected to fall below 20 yuan per kg by 2025 and 15 yuan per kg by 2030, thanks to the scaling up of wind and solar power generation, as well as technological advancements such as improvements in electrolyzer efficiency.
By 2060, green hydrogen is projected to cost less than its carbon-intensive counterpart, gray hydrogen, which currently averages around 10 yuan per kg. The cost parity between green and gray hydrogen is expected to unlock new commercial opportunities, paving the way for hydrogen to compete purely on economic merit rather than environmental credentials, said a report on China’s hydrogen industry development released by the institute.
Recognizing the sector’s strategic importance, Chinese provincial-level regions are rolling out tailored policies to boost hydrogen production, transport, storage and application.
Regions with strong solar and wind potential, especially those in Northwest China, have announced more ambitious hydrogen production targets.
The Inner Mongolia autonomous region aims for 480,000 tpa of renewable hydrogen production by 2025, while Gansu province has set a target of 200,000 tpa, all of which are expected to contribute enormously to China’s hydrogen production in the region.
China’s coal-rich regions are also transforming their energy landscapes by investing in hydrogen. Xiaoyi, Shanxi province, historically dependent on coal mining, has been investing in hydrogen technology and infrastructure, including building hydrogen production plants, refueling stations and research facilities, harnessing its industrial expertise and infrastructure.
Guo Qingzhi, mayor of Xiaoyi, believes that the hydrogen energy industry, as a representative of new quality productive forces in the energy sector, has strong momentum and promising prospects.
Rystad Energy said, geographical disparity exists between China’s hydrogen demand centers in the east and its abundant solar and wind energy resources in the north, which are ripe for developing green hydrogen production.
A hydrogen truck fills up at an H2 refueling station of CNPC at Chongqing International Logistics Hub Park in June 2024. (SUN KAIFANG / FOR CHINA DAILY)
This has resulted in a supply-demand mismatch, prompting China to explore the expansion of its network of hydrogen pipelines, it said.
To support this rapid expansion, a robust hydrogen transportation network is in the works. By 2060, China aims to establish a system capable of transporting 30 million tons of hydrogen annually, approximately one-third of the nation’s projected production.
This network is set to become a cornerstone of China’s energy infrastructure, enabling seamless integration of hydrogen into the broader energy mix.
China Petroleum & Chemical Corp launched a project last year to channel hydrogen from Inner Mongolia to Beijing this year through a 400-kilometer hydrogen pipeline, the country’s first trans-regional, long-distance channel.
This pipeline will be able to handle about 100,000 tons of hydrogen annually when its first phase is completed, and has the potential to increase capacity by 500,000 tons over the long run, it said.
The company estimates that China’s hydrogen energy consumption is projected to reach nearly 86 million tons by 2060, with an industry scale of 4.6 trillion yuan.
Tangshan Haitai New Energy Technology, a unit of Chinese solar company Haitai Solar, is currently constructing a 737-km hydrogen pipeline, the world’s longest, paving the way for future exports of renewable hydrogen.
The Zhangjiakou Kangbao-Caofeidian pipeline, named after its origin and destination points, is estimated to cost 6.1 billion yuan and is expected to be completed by June 2027.
Link: https://www.chinadailyhk.com/hk/article/599811
China set to lead global electrolyser installations in 2024
China is set to lead global electrolyser installations with nearly 70% of projected capacity this year, according to the International Energy Agency’s (IEA) Global Hydrogen Review 2024.
Electrolysers, which use electricity to split water into hydrogen and oxygen, are a critical technology for producing low-emissions, or “green” hydrogen, from renewable or nuclear electricity.
By the end of 2023, installed electrolyser capacity reached 1.4 GW globally, with projections indicating it could rise to 5 GW by the end of 2024, primarily driven by projects in China, the report notes.
Despite global hydrogen demand reaching 97 million tonnes in 2023, green hydrogen production remains below 1 million tonnes, with most of the demand still being met by “grey” hydrogen produced from fossil fuels. In China, green hydrogen similarly accounts for just 1% of total hydrogen production.
According to the IEA report, 60% of the world’s electrolyser manufacturing capacity is currently located in the country. With expanding production capabilities, costs for electrolysers are expected to decrease further, following a similar trend observed in the solar photovoltaic and battery industries.
As local governments announce ambitious plans, China’s hydrogen sector is anticipated to grow rapidly. However, slow infrastructure development and weak consumption demand could pose risks of overcapacity, the South China Morning Post noted last year.
This trend also extends to the export sector. In late August, China Daily reported that Chinese hydrogen electrolyser exports have been experiencing an unprecedented surge due to growing demand for sustainable solutions in Europe and the Middle East. However, in September, the European Union announced that it will take steps to exclude Chinese-manufactured electrolysers from an upcoming auction in a bid to reduce competition.
“The development of China’s hydrogen industry is unbalanced”, said Guo Jianzeng, a director of the 718th Institute of the China Shipbuilding Industry Corporation, its research-focused arm. He added that the bottleneck in hydrogen storage and transportation has not been paid enough attention, while investment in areas such as electrolysis and hydrogen fuel cells is currently overheated.
Some in the industry have sought to assuage these concerns. They say that the “capacity” in “overcapacity” refers to the planned capacity and not actual output, and that whether the capacity will be implemented remains uncertain.
“Due to the complexity and bespoke nature of electrolyser equipment, manufacturers do not choose to produce more products for inventory,” noted a Chinese hydrogen company chief. “They will only produce when there are orders.”
Link: https://dialogue.earth/en/digest/china-set-to-lead-global-electrolyser-installations-in-2024/
When it comes to energy, China shoots in every direction
China is rewriting the playbook for road transportation, blending rapid electric vehicle adoption with bold investments in alternative fuels infrastructure.
© Sinopec
China steals the headlines when it comes to the transformation of the road sector. Electric vehicles are flooding Chinese roads while the public and private companies invest in alternative fuels infrastructure. The Asian giant is on a mission to meet ambitious carbon neutrality goals by 2060. At the heart of this shift lies an evolving network of service stations with national and international brands.
China’s network of over 100,000 service stations is experiencing a dramatic transformation. Historically reliant on gasoline and diesel sales, these stations are diversifying their offerings to include LNG, hydrogen, and EV charging. The multi-energy station concept has been a reality for a number of years.
The evolution of road transportation in China
With the world’s largest car fleet, China’s dependence on gasoline and diesel is undeniable. Policies aimed at peaking petroleum consumption by 2027 have started to shift the landscape. The demand for liquid fuels is slowly declining as alternatives gain traction.
Compressed natural gas (CNG) and liquefied natural gas (LNG) have emerged as viable options for reducing emissions, particularly among heavy-duty trucks. LNG truck sales surged to over 100,000 units in the first half of 2024, supported by government subsidies and stricter emissions standards. However, the economic viability of these trucks is closely tied to regional LNG pricing disparities and ongoing concerns about methane leakage.
Biofuels, despite their potential, have struggled to gain a foothold due to challenges with feedstock availability and limited policy incentives. The average biodiesel blend remains below 0.3%, but investments in advanced biofuels such as cellulosic ethanol and synthetic fuels are beginning to change the narrative. China has developed technologies to produce ethanol from coal and industrial waste gases, positioning itself as an innovator in the sector.
Hydrogen fuel cell technology is also making waves in China, particularly in the commercial vehicle segment. Sales of hydrogen-powered buses and trucks reached 5,217 units in the first three quarters of 2024, accounting for more than half of global sales in this category. While hydrogen infrastructure is still in its infancy, government incentives and investments are accelerating its deployment. Hydrogen refueling stations, though currently numbering just over 500 nationwide, are set to grow exponentially as subsidies and infrastructure investments take effect.
However, it’s in e-mobility where the country truly shines.
Electrifying China’s Roads
In 2023, the country accounted for over 60% of global EV sales, with 8.1 million units registered domestically. This represents a 35% increase compared to 2022, cementing China’s status as the largest market for electric vehicles. Policy measures, including tax exemptions and substantial subsidies, have made EVs more accessible, while domestic automakers have driven down costs through scale and technological advancements.
© Shell
Charging infrastructure is expanding rapidly to keep pace with the surging number of EVs. By 2023, China boasted over 1.8 million publicly accessible charging points, more than half of the global total. Service stations are rapidly rolling out fast chargers to serve the growing demand. Last year, Shell and BYD opened the largest EV charging station in China featuring 258 public fast-charging points. By the end of 2023, nearly 30% of public EV chargers were located at service stations.
“Our country has built the world’s largest charging infrastructure system, with the biggest number of chargers, the widest range of services and the most complete types of chargers,” said Li Chao, a spokesperson for the National Development and Reform Commission (NDRC), back in June.
While electric vehicles are a key pillar of China’s decarbonization strategy, their environmental impact is tempered by the country’s reliance on coal-fired power, which still generates over 60% of its electricity. The country’s strategy has been: build an EV ecosystem first, get cleaner electricity later.
As China continues to reshape its transportation landscape, the evolution of its service station network will play a pivotal role. International brands like Shell and BP are already seeing significant growth in the market. Italian energy player ENI opened its first site earlier this year with CIEC. By blending traditional fuels with cutting-edge technologies like EVs and hydrogen, and by embracing advanced biofuels, China is creating a model for the world to emulate.
Link: https://www.mobilityplaza.org/news/39762
Sinopec opens HK hydrogen refueling station
The company logo of Sinopec Corp is displayed at a news conference in Hong Kong. [Photo/Agencies]
China Petroleum & Chemical Corp, the world’s largest refiner, also known as Sinopec, recently launched the first public hydrogen refueling station in the Hong Kong Special Administrative Region, a milestone in the region’s push for cleaner energy alternatives.
The station is expected to play a key role in the development of a hydrogen economy in Hong Kong and the broader region, which has been ramping up efforts to adopt cleaner energy sources to combat air pollution and meet global climate targets, it said.
With a daily refueling capacity of 1,000 kilograms, the hydrogen station is sufficient to support the growing fleet of hydrogen-powered vehicles in the region. The station will initially serve hydrogen-powered vehicles, including buses and cars, and is expected to be expanded as demand grows, it added.
An analyst said the launch of this facility is a major step toward the promotion of hydrogen as a clean alternative to fossil fuels in both transportation and industrial sectors.
Wu Mouyuan, vice-president of the China National Petroleum Corp Economics and Technology Research Institute, said hydrogen, serving as a clean fuel alternative, can produce energy without emitting carbon dioxide and has proven to be a promising solution for heavy industry, aviation and long-haul overland transport, decarbonizing sectors that are challenging to directly electrify.
Hydrogen can play a crucial role in consuming and storing renewable energy, an energy alternative for achieving deep emissions reductions at the terminal stage, he said.
The launch of the station in Hong Kong comes amid a growing global interest in hydrogen as a clean energy carrier. Hydrogen is widely regarded as one of the most promising solutions for decarbonizing industries that rely on high-temperature processes, such as steel and cement production, as well as heavy-duty transport, including buses, trucks and trains.
In addition to its environmental benefits, hydrogen refueling stations are also seen as a step toward diversifying Hong Kong’s energy infrastructure, which currently relies heavily on imported fossil fuels, said Sinopec.
Sinopec’s Hong Kong station is part of the company’s broader strategy to expand its hydrogen infrastructure at home and abroad. The company has been making significant investments in hydrogen production, refueling stations and related technologies in recent years, to capitalize on the global shift toward low-carbon energy systems.
The Hong Kong government is also actively working toward establishing a regulatory framework conducive to the growth of the hydrogen industry, aiming to introduce a certification model for “green hydrogen” or “low-carbon hydrogen” by 2027, an initiative that is expected to position Hong Kong as a demonstration base for the green hydrogen industry globally.
Data released by the Chinese Renewable Energy Society show that China has built over 400 hydrogen refueling stations, ranking first in the world in number.
As the largest producer and consumer of hydrogen globally, China will see its hydrogen energy industry output value reach 1 trillion yuan ($137.6 billion) by 2025, said the China Hydrogen Alliance.
The alliance estimated that China’s hydrogen energy will account for more than 10 percent of China’s terminal energy system, with the annual output value of the industrial chain expected to reach 12 trillion yuan by 2050.
Link: https://www.chinadaily.com.cn/a/202412/10/WS6757a40da310f1265a1d20d1.html
Hygreen Energy supplies 25-MW electrolyser in China
Chinese electrolyser maker Hygreen Energy has delivered a 25-MW order for a regional unit of state-owned power producer China Huadian Corporation (CHD) that could allow the production of 3.6 tonnes of hydrogen per day.
Source: Hygreen Energy.
The delivery was made to Huadian Weifang Power Generation Co Ltd in Weifang, Shandong province. It includes five stacks of 5 MW each.
The installation and commissioning of the electrolyser started in November, while completion is anticipated in the first quarter of 2025.
Hygreen Energy’s system is integrated into Huadian Weifang’s existing power plant and serves to reduce renewable energy wastage. Its output will be used for an on-site hydrogen refuelling station, as well as for mixing with natural gas through pipelines for use by enterprises and residents.
The project is the first large-scale hydrogen energy storage demonstration under China’s Hydrogen Into Ten Thousand Homes initiative. It is also described as the largest hydrogen production initiative in the region to date.
Hygreen Energy specialises in alkaline, polymer electrolyte membrane (PEM) and anion exchange membrane (AEM) electrolysis technologies. Its global marketing director recently spoke with Renewables Now about the current state of the Chinese hydrogen market and its prospects.
Link: https://renewablesnow.com/news/hygreen-energy-supplies-25-mw-electrolyser-in-china-1267972/
How China’s ‘Hydrogen Into Ten Thousand Homes’ Initiative Is Taking Off
Hygreen Energy Delivers 25-Megawatt Electrolyzer System for Hydrogen Production in China
Hygreen Energy, a global leader in hydrogen technology and electrolyzer manufacturing, has announced the successful delivery of a 25-megawatt electrolyzer system to Huadian Weifang Power Generation Co., Ltd., marking the largest hydrogen production initiative in the region to date. The system represents a significant step in scaling up hydrogen production and integrating green hydrogen into power and industrial applications.
The Technology Behind Hygreen Energy’s Electrolyzers
Hygreen Energy specializes in advanced electrolyzer technologies, including Alkaline, Proton Exchange Membrane (PEM), and Anion Exchange Membrane (AEM) systems. These systems are designed to split water molecules into hydrogen and oxygen using electricity, with the produced hydrogen purified and stored for various applications. For this particular project, Hygreen delivered a system comprising five 5-megawatt electrolyzer stacks, each capable of producing high-purity hydrogen at 99.999% levels.
These stacks are supported by robust balance-of-plant systems, also developed by Hygreen, which ensure seamless integration and operation. The system is built to produce 3.6 tons of hydrogen per day, with advanced handling, storage, and distribution systems to ensure both safety and efficiency. This level of scale demonstrates the feasibility of electrolyzer technology for larger, multi-functional renewable energy projects, where hydrogen can play a critical role.
Project Time Frame and Integration
The hydrogen production facility is located in Weifang, China, within the existing infrastructure of Huadian Weifang’s power plant. Installation and commissioning of the electrolyzer system began in November 2024, and the project is expected to be fully operational by the first quarter of 2025.
The hydrogen produced at the facility will serve multiple purposes. Part of the output will be used to supply an on-site hydrogen refueling station, advancing the clean transportation sector in the region. Additionally, hydrogen produced will be blended with natural gas and delivered via pipelines to industrial, commercial, and residential users, showcasing the flexibility of hydrogen as an energy solution.
This project, part of China’s “Hydrogen Into Ten Thousand Homes” initiative, serves as a demonstration of large-scale hydrogen energy storage and its integration into existing systems. This initiative aligns with broader policy goals of reducing carbon emissions and increasing renewable energy utilization.
Why This Development Matters
The delivery of a project of this scale emphasizes the growing role of hydrogen in the renewable energy transition. By integrating a 25-megawatt electrolyzer system with an existing power plant, Huadian Weifang demonstrates how renewable energy that might otherwise be wasted can be converted into a usable and storable form of energy—hydrogen. This not only enhances grid resilience by stabilizing variable energy supply but also strengthens the economic case for investing in hydrogen infrastructure.
Hydrogen has a unique ability to address several challenges in the global energy transition. It can serve as a long-term energy storage medium, power transportation sustainably, and act as a cleaner alternative to natural gas for heating and industrial processes. This project exemplifies the practicality of these solutions in real-world applications.
Additionally, the dual use of hydrogen for a refueling station and pipeline distribution diversifies its applications within the region. This highlights its adaptability in meeting energy needs ranging from heavy industries to everyday household usage, further showcasing how hydrogen can become a critical part of future energy systems.
Applying Hydrogen Technology in Today’s Energy Landscape
The significance of this project lies in its demonstration of how hydrogen can be integrated into existing energy systems to create a more sustainable future. Hydrogen technologies, such as those supplied by Hygreen Energy, offer an avenue to turn surplus renewable energy—such as wind and solar—into a stable, storable, and versatile fuel. By doing so, these systems help reduce waste, limit dependence on fossil fuels, and significantly cut greenhouse gas emissions.
Beyond this project, hydrogen can play a key role in decarbonizing industries that are hard to electrify, such as steelmaking, shipping, and aviation. Using hydrogen as a fuel or feedstock in these areas could make substantial contributions to global climate goals. Furthermore, advancements in electrolyzer technology will continue to improve efficiency, reduce costs, and make green hydrogen increasingly accessible worldwide.
The lessons learned from projects like Huadian Weifang demonstrate the importance of collaborative initiatives between technology developers, energy providers, and policymakers. Scaling up hydrogen production and integrating it into grids and industrial operations requires not only advanced systems but also supportive infrastructure, regulations, and public investment.
As we look ahead, replicating and refining projects like this will be essential for fulfilling the promise of hydrogen in a low-carbon future. These developments make it clear that hydrogen is no longer just a theoretical solution, but a practical and critical tool for addressing today’s energy and environmental challenges.
Link: https://www.hydrogenfuelnews.com/hydrogen-into-ten-thousand-homes/8568556/