The industrial sector is currently China’s largest consumer of hydrogen and is expected to hold its prominent position as a primary market for large-scale green hydrogen utilization in the future. In 2020, a total of 31.73 million tons of hydrogen were consumed in China, with the chemical industry accounting for 70% and the oil refining industry for 24% of this consumption. Domestic hydrogen consumption is expected to increase more than 2.5 times by 2060, to reach an estimated 75 million to 100 million tons annually. Industrial demand is expected to continue dominating hydrogen utilization — at an estimated 60% of the overall consumption, marking a 1.5-fold increase in absolute demand.
The steel and chemical industries have great potential for large-scale utilization of green hydrogen. By 2050, up to 20% of the country’s total steel is expected to come from hydrogen-based production. The demand for green hydrogen in the steel industry is expected to grow to around 7 million tons, an increase of more than 4.5 times in 20 years. In the chemical industry, green hydrogen–based ammonia and methanol production is expected to account for 70% and 74% of total production, respectively, by 2050, at which point green hydrogen will replace coal as the main feedstock. The demands for green hydrogen for ammonia and methanol production will reach around 11 million tons and 9 million tons, respectively.
This report “Transitioning China’s Industries: Creating Clusters for Large-scale Green Hydrogen Integration” by RMI suggests and interprets the cluster development model in light of the critical requirements for the widespread utilization of green hydrogen in industry, and the distribution of industrial capacities and availability of green hydrogen resources in China. Specifically, the report conducts techno-economic analysis of green hydrogen production, storage, transportation, and utilization in industry, forming a foundation for achieving cost-efficiency when technically feasible during the cluster development process.
Access the complete report here
