Europe is seeking closer partnership with China on clean energy [Op-Ed]

by Qaiser Nawab

At a sprawling clean-energy expo in China, European
executives come looking for partners and lower costs.

“China leads the game in renewable hydrogen production capacity.
Of the $110 billion committed investment globally in clean
hydrogen, China accounts for nearly a third ($33 billion). We can
open new trusted energy partnerships to keep driving our industries
forward to ensure that we maintain industrial competitiveness,
which means high quality jobs and booms for both the economy and
the society,” Ivana Jemelkova, CEO of the Belgium-headquartered
Hydrogen Council said at the Clean Energy Expo China (CEEC) held in
Beijing last week.

As a net energy importer, Europe is grappling with soaring
prices—gas futures have doubled and oil prices have risen by more
than 50% since the start of the year. According to global energy
think tank Ember, wind and solar accounted for 30.1% of EU
electricity generation in 2025—well short of the 60%-plus target
for 2030. Meanwhile, energy security remains fragile: in the first
ten days of the latest Middle East conflict, the cost of gas-fired
power in Europe jumped by more than 50%. Shell’s executive Wael
Sawan warns energy shortage as early as next month.

Green hydrogen produced through electrolysis of water is
regarded by the EU as one of the core strategies to address climate
change and reduce reliance on fossil fuels. In its REPowerEU
strategy, the EU set a target of 10 million tons for both
domestically produced and imported renewable hydrogen by 2030.

A representative from TÜV SÜD, a German-based testing,
certification and inspection group, underscores that Europe faces
an acute need for hydrogen to address three interconnected crises:
energy security, industrial decarbonization, and climate
compliance.

This trend aligns with the broader global momentum. According to
the Hydrogen Council, committed investment in the clean hydrogen
sector has grown at an average annual rate of over 50% since 2020.
The investment attracted by clean energy is now nearly twice that
of fossil energy, data from the International Energy Agency
shows.Yet green hydrogen still accounted for less than 1% of global
output in 2025, underscoring the vast potential for future
growth.

Vineet Bhatia, a senior adviser at the United Nations
Development Programme in China, notes that China, already boasting
the world’s largest fleet of fuel-cell vehicles and the most
extensive network of hydrogen refuelling stations, is well placed
to scale solutions, backed by its ambitious Hydrogen Energy
Development Plan (2021–2035).

Hydrogen has been earmarked as one of six “industries of the
future” in the country’s five-year plan for 2026-2030. By the end
of 2025, China’s annual hydrogen production and consumption
exceeded 37m tonnes, with renewable-powered electrolysis capacity
more than doubling to over 200,000 tonnes per year. Nearly 40,000
fuel-cell vehicles are now on the road, supported by 574 refuelling
stations—the most in the world.

Costs, crucially, are falling. A report by China’s National
Energy Agency suggests that the cost of electrolytic hydrogen
production has dropped by nearly 40% since 2020. In Inner Mongolia,
a northern China’s province known for vast grasslands, green
hydrogen output surpassed 12,000 tonnes in 2025, with production
costs hovering at 17–20 yuan ($2.30–2.70) per kilogram—approaching
parity with coal-based hydrogen.

Green hydrogen: towards large-scale application
China’s annual production and consumption of hydrogen energy have
exceeded 36.5 million tons, accounting for 36.6% of the global
total, ranking first globally for multiple consecutive years.

Leveraging abundant wind and solar resources, the country is
rolling out “wind–solar–hydrogen–storage” projects at pace. By
August 2025, more than 800 such projects were planned, under
construction or operational, with combined investment exceeding
600bn yuan.

This month, the country’s first 10,000-tonne photovoltaic
hydrogen project, in Ordos, Inner Mongolia, completed its first
delivery of high-purity hydrogen. Elsewhere, a flagship offshore
“solar–hydrogen–storage” project in Rudong combines 400MW of solar
capacity with grid-side energy storage, with surplus electricity
fed directly into hydrogen production—driving marginal energy costs
close to zero.

Technological gains are reinforcing the trend. Integrated
systems pairing wind power with electrolysis are improving
efficiency and durability. Wind-powered hydrogen system reduces
maintenance frequency by 50% and lifecycle costs. In Ordos, falling
electricity prices from the Wind-Solar Green Hydrogen Project have
already cut green-hydrogen costs by a quarter since 2023, narrowing
the gap with fossil-fuel alternatives. In Songyuan, Jilin Province,
the world’s largest green hydrogen, ammonia and alcohol integrated
demonstration project is set to come on stream in November.

China’s broader energy transition underpins this momentum. By
the end of 2025, renewable capacity had reached 2.34 terawatts,
accounting for roughly 60% of installed power capacity. Green
electricity now makes up nearly 40% of total consumption.

Policymakers are pushing further. A recent directive from three
ministries aims to scale up hydrogen applications across urban
clusters by 2030, with average end-use prices targeted below 25
yuan per kilogram—and as low as 15 yuan in leading regions. The
national fleet of fuel-cell vehicles is expected to double to
around 100,000.

Where Europe looks to build
Against this backdrop, European firms are turning to China—not just
as a market, but as a manufacturing base and innovation
partner.

The CEEC drew 617 exhibitors from 18 countries and regions,
showcasing more than 60 new hydrogen technologies. Germany’s Evonik
unveiled its DURAION® anion-exchange membrane, while Schaeffler
presented its flagship megawatt-scale K1000 electrolyser. The firm
also recently set up an embodied-intelligence venture in China to
explore industrial applications.

On her first visit to China, Anne Dalager Dyrli, chief executive
of Cerpotech, a Norwegian manufacturer of ceramic powders for fuel
cells, observes a surge of interest across the entire hydrogen
value chain. “Historically, we began in Europe and later expanded
into the American markets,” she says. “In recent years, the market
share here in China for us has grown steadily; today, roughly
10–15% of our sales go to companies, universities, and research
institutes in China.” The firm plans to scale up production to meet
rising demand, while deepening direct engagement with customers on
the ground.

Luis Solla, CEO of Nordex Electrolyzers from Spain, says Europe
must bring down equipment costs to make green hydrogen viable. “To
produce cheaper hydrogen, we are building a supply chain in
China—manufacturing components here, shipping them to Spain, and
assembling them locally,” he explains. “China offers scale,
quality, and strong R&D. It will be a key pillar of the global
clean-energy system.”

Mathieu Petiteaux, General Manager from French ball valve
manufacturer Meca-inox, stresses the need to develop hydrogen as a
means of storing electricity generated from solar and wind power.
Through joint research with a university in Dalian, the company is
working to reduce the weight of its components for a smaller
environmental footprint.

Wilko van Kampen of Dutch firm XINTC Electrolysers highlights
shorter lead times and lower component costs in China, calling them
“decisive advantages”. His firm is considering establishing a joint
production venture in China, both to serve the domestic market and
as an export hub for the Asia-Pacific, followed by a wholly owned
operation.

For start-ups, collaboration is as much about innovation as
cost. Iker Marcaide, chief executive of Spanish materials firm
Matteco, says the company is seeking partners across industry and
academia. “We are deeply invested in R&D,” he notes. “Working
with Chinese universities, technology centres, and customers will
help us develop more efficient electrolyser materials. We see the
future as a strong, long-term partnership.”

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Qaiser Nawab is Chairman of the Belt and Road Initiative for
Sustainable Development (BRISD), an international platform focused
on fostering cooperation and innovation across Asia, Africa, and
Latin America

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The views and opinions expressed by guest columnists
in their articles may differ from those of the editorial board and
do not necessarily reflect its views.