In collaboration with Accenture and China Hydrogen Alliance Green Hydrogen in China: A Roadmap for Progress WHITE PAPER JUNE 2023 Images: Getty Images Disclaimer This document is published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders. © 2023 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. Contents Foreword 4 Executive summary 5 Introduction: A great mission and a long way to go 9 Goal 1 Cost 14 1.1 Production cost is a core constraint in scaling up green hydrogen 14 1.2 Enabling measures for reducing cost 17 Goal 2 Infrastructure 19 2.1 Underdeveloped infrastructure restricts availability of green hydrogen 19 2.2 Enabling measures for infrastructure 21 Goal 3 Market demand 24 3.1 China’s new markets for green hydrogen need policy support to reach their potential 24 3.2 Enabling measures to create market demand 26 Goal 4 Industry standards and certification 30 4.1 Standard-setting is too slow to support the fast-growing hydrogen industry 30 4.2 Enabling measures for standards and certification 32 Goal 5 Technology 33 5.1 China has mature alkaline electrolysis technology and is now exploring the new generation of hydrogen production processes 33 5.2 Enabling measures for technology 35 Goal 6 Evolution and cooperation 36 6.1 Top-level planning has not yet defined the development path for the hydrogen supply chain 36 6.2 Enabling measures for evolution and cooperation 38 Blueprint for the evolution of green hydrogen in China 39 Conclusion 44 Contributors 45 Endnotes 47 Green Hydrogen in China: A Roadmap for Progress 3 June 2023 Green Hydrogen in China: A Roadmap for Progress Foreword Roberto Bocca Head of Centre for Energy and Materials; Member of the Executive Committee, World Economic Forum Wei Liu Secretary-General, China Hydrogen Alliance Hydrogen can play an important role in accelerating the transition of the energy sector towards net-zero emissions. But it needs to be clean and at scale. The rapid development of hydrogen has become a global priority, and China has incorporated it in its latest national development strategy. Green hydrogen has a vital role to play in helping China peak and then neutralize its carbon emissions. It is central to the government’s ambition to build a green, low-carbon industrial system. And it can contribute towards China’s strategic goal of reducing its reliance on fossil fuels. Yet, although China is the world’s largest hydrogen producer and consumer, less than 0.1% of the hydrogen it produces is from renewable sources of energy. China Hydrogen Alliance has launched the Renewable Hydrogen 100 initiative that aims to increase the installed capacity of electrolysers to 100 gigawatts by 2030, resulting in a green hydrogen production capacity of roughly 7.7 million tonnes per year.1 This paper aims to understand and map out China’s pathway towards its 2030 objectives for green hydrogen. It builds on the work of the Accelerating Clean Hydrogen Initiative of the World Economic Forum, which published the Enabling Measures Roadmaps for Green Hydrogen for Europe and Samantha Zhu Chairperson; Market Unit Lead, Greater China, Accenture Japan at the 26th Conference of Parties (COP26) in Glasgow in November 2021.These roadmaps have since been updated with the latest policy developments in both regions. The roadmap presented in this document for China’s green hydrogen industry is the third in the series. It was created by the World Economic Forum and Accenture, in partnership with China Hydrogen Alliance. Similar to our other roadmaps, we have identified six key barriers, principal among which are cost, demand, infrastructure and standards. Positively, China’s abundant sources of renewable energy can amply power its green hydrogen development, and the country’s existing 34 million tonnes grey and blue hydrogen industry has created a market that could enable an accelerated expansion of