Chinese Hydrogen Experts: "Hydrogen Industry Needs Policy Support... Stronger International Cooperation Required"

'2026 Korea-China Hydrogen Policy Forum'

"Industry-wide Collaboration Needed to Lower Green Hydrogen Costs"

"Korea and China Can Cooperate in Producing Green Ammonia and Methanol"

Chinese hydrogen experts have emphasized that strong government policies and inter-industry collaboration are essential for the hydrogen industry's transition to full commercialization. They pointed out that, in particular, because the hydrogen industry has a long value chain spanning from production to transportation and utilization, cross-border cooperation can help lower costs and expand the market.

In a meeting held in Seoul before the "2026 Korea-China Hydrogen Policy Forum" on September 17, Chinese hydrogen professionals stressed that government policy support is indispensable for the growth of the hydrogen industries in China and other major countries.

(from left) Xiao Chengzhang, Deputy Director of China Hydrogen Energy Alliance Research Institute (CHA); Liu Daizong, East Asia Representative of the Institute for Transportation & Development Policy (ITDP); Yang Puyuan, Professor at Tsinghua University School of Vehicle and Mobility; and Liu Jianguo, Professor at North China Electric Power University Energy and Power Innovation Institute, are conducting an interview with reporters on the 17th. Korea Hydrogen Alliance

Yang Fuyuan, Professor at Tsinghua University's Academy of Vehicle and Mobility, underscored the role of policy in the hydrogen industry. He stated, "Policy is an indispensable pillar for the development of the hydrogen industry." He explained that since 2021, China's central government has announced more than 30 policies favorable to hydrogen industry development, including measures for renewable electricity use, power grid integration, cost reduction, and hydrogen utilization within industrial complexes.

Xiao Chengzhang, Deputy Director of the China Hydrogen Energy Alliance Research Institute (CHA), commented, "Not only in China, but also in Europe and Korea, the development of the hydrogen industry is still largely policy-driven." He assessed that many countries remain in the stage of policy-led growth for hydrogen.

In practice, since 2020, China has designated five pilot city clusters to expand hydrogen utilization—mainly focusing on fuel cells and transportation. Initially, related industries and projects were nurtured through policies and subsidies, but more recently the scope of application has widened to include industrial sites such as the petrochemical sector. This involves shifting from grey hydrogen produced from coal or natural gas to clean hydrogen based on renewable energy.

However, the foremost barrier to expanding the hydrogen industry was cited as price. Professor Yang noted, "The greatest constraint on green hydrogen development is cost," and pointed out that it is difficult to achieve large-scale adoption unless the final price paid by end-users is reduced.

He explained, "Whereas the battery industry is structured such that multiple participants connect in a single market, the hydrogen industry forms a long, linear chain consisting of production, storage, transport, and utilization." He stressed that "all participants throughout this chain must join forces to reduce costs." This means that not only hydrogen production costs, but costs across the entire value chain must be lowered to reduce the final price.

To address cost reduction in China, efforts are underway to scale up alkaline water electrolysis systems and cut maintenance expenses. According to Professor Yang, alkaline water electrolysis systems now account for more than 92% of China's electrolysis equipment market. Facilities capable of producing about 3,000 cubic meters of hydrogen per hour have been introduced, and demonstration projects linked to renewable energy are ongoing.

The need for international cooperation was also highlighted. Liu Jianguo, Professor at North China Electric Power University’s Energy and Power Innovation Research Institute, commented that "As Korea is an energy-importing country, demand for low- and zero-carbon fuel imports will increase during its carbon-neutral transition," and suggested that green ammonia and green methanol could be promising areas for Korean-Chinese collaboration.

Professor Liu noted that the geographical proximity between Korea and China could make logistics costs lower than for fuel shipments from regions like Australia or the Middle East. He also proposed a cooperation model whereby Korean companies invest in green hydrogen production projects in northeastern and northwestern China to secure relatively cheap hydrogen for import. If bilateral cooperation expands, the two countries could establish mutually recognized standards for green fuels.

Chinese experts also observed that the two countries have different strengths in hydrogen mobility. Professor Yang commented, "I understand that Hyundai Motor is collaborating and connecting with diverse Chinese entities, and while hydrogen vehicles in China are more commercial vehicle-centered than passenger car-centered, there has been significant progress especially in the heavy truck sector." Deputy Director Xiao evaluated that Korea is ahead regarding hydrogen mobility manufacturing and road transportation infrastructure.

Liu Daizong, East Asia Representative of the Institute for Transportation and Development Policy (ITDP), added, "Electric bikes deserve attention in urban transport. In China, with its highly developed bike rental market, equipping shared bikes with lightweight hydrogen fuel cells would increase their operational range."

There was also a view that hydrogen could create new opportunities for international cooperation despite growing geopolitical tensions. Representative Liu explained that instability in energy supply chains could accelerate countries’ energy transitions. He said China has plans to establish a 30,000 km carbon-free freight corridor and to convert 1.6 million trucks to carbon-free vehicles.

Representative Liu pointed out, "The hydrogen industry’s long value chain—spanning production, transportation, and utilization—brings together a variety of stakeholders, from logistics companies to exporting firms. An increased focus on national energy security does not necessarily mean reduced cooperation between countries." On the contrary, he argued, as nations pursue fuel transitions in the transportation sector, international cooperation centered on hydrogen could actually strengthen.

Chinese experts agreed that the challenges for the hydrogen industry go beyond technological competition, centering instead on policy and cooperation. They explained that in addition to policy support to shape the early market, industry players connected throughout the chain from production to end-use must work together to lower costs. On the international front, countries must leverage each other’s strengths through collaborative structures in order to accelerate the commercialization of the hydrogen industry.

This content was produced with the assistance of AI translation services.