Although the analysis focuses on Hainan Province, many of the identified challenges are common across China. The challenges span the technical integration of renewable electricity and hydrogen production, the economics and market conditions needed to support commercially viable projects, and the policy frameworks needed for deployment. Based on these challenges, we identify a corresponding set of policy options, also shown in the table above.
The Hainan case studies indicate that the commercial development of green hydrogen projects depends not only on hydrogen production technologies, but also on a range of factors, including renewable electricity supply, market demand, infrastructure, and relevant regulatory and administrative frameworks. Addressing the barriers through a coordinated policy framework that links renewable electricity, hydrogen markets, and enabling regulation can help establish a commercially viable green hydrogen industry and support China’s long-term decarbonization goals.
