China’s 15th Five-Year Plan Charts Clear Path for Green Hydrogen Industrial Expansion

According to China Economic Net, China’s 15th Five-Year Plan has identified green hydrogen as a key emerging industry, rolling out targeted arrangements to upgrade renewable hydrogen production equipment, advance large-scale hydrogen storage and transportation technologies, optimise hydrogen infrastructure networks, and extend the green hydrogen industrial chain to green ammonia, methanol and sustainable aviation fuels. The policy framework supports broader hydrogen adoption across transportation, power generation and industrial sectors, accelerating the large-scale commercialisation of the domestic hydrogen economy.

Building on solid progress during the 14th Five-Year period, China has developed a complete hydrogen industrial chain covering hydrogen production, storage, transportation and end-use applications. The country has secured leading global advantages in electrolyser manufacturing and commercial vehicle hydrogen adoption. Statistics from the national hydrogen information platform show that China’s installed and under-construction renewable hydrogen production capacity has exceeded one million tonnes per year by March this year, with water electrolysis standing as the dominant technical route.

Innovative industrial models are gaining steady traction across multiple scenarios. Wind-solar-hydrogen coupling systems have completed technical verification for refining and coal chemical decarbonisation, with ongoing trials in port transportation, industrial park heating and large-scale renewable energy bases. The integrated green hydrogen-ammonia-methanol model transforms traditional chemical raw materials into low-carbon fuels, enabling flexible cross-regional energy allocation. Core equipment, key materials and manufacturing links of China’s hydrogen industry have achieved widespread domestic substitution, moving the sector into a phase of iterative innovation, pilot demonstration, cost reduction and market expansion.

The industry still faces structural bottlenecks despite its scale advantages. Upgrading is required in core storage and transportation technologies and durable basic materials. Mismatches exist between large domestic manufacturing capacity and underdeveloped logistics networks, as well as between fast-growing green hydrogen projects and international certification systems. Ongoing technical breakthroughs will drive the industry’s shift from scale leadership to core competitive superiority.

Scaled project development and full-chain cost reduction form the core driving force for market expansion. Most operational hydrogen projects remain small-scale, while newly built facilities show rapid growth in unit capacity. Multiple large-scale projects above 50,000 tonnes are under construction in Xinjiang, Inner Mongolia and Jilin, speeding up the transition from experimental demonstration to commercial operation.

Research released by the China Hydrogen Alliance sets clear cost targets for the 15th Five-Year period. Renewable hydrogen production costs are expected to drop below 15 yuan per kilogram nationwide and under 10 yuan per kilogram in resource-abundant regions. Hydrogen transportation costs will fall by more than 50 percent compared with 2025 levels, with pipeline delivery offering highly cost-efficient long-distance transmission. End-user hydrogen prices will achieve market parity with conventional energy sources in transportation and industrial sectors.

National-level regional pilot programmes further support high-quality industrial growth. Launched by the National Energy Administration last December, the first batch of hydrogen energy pilots covers 41 projects and nine regional demonstration zones. Latest data shows northeast, north and northwest China account for 45.7 percent, 30 percent and 21.8 percent of operational renewable hydrogen capacity respectively. Future efforts will focus on technological transformation, institutional innovation and targeted policy support to optimise industrial layout and reinforce national green energy security.