Policy and Innovation in the New Energy Sector: Carbon Neutrality in the Hydrogen-Powered Vehicle Industry
As of March 31, 2025, despite the challenges in advancing green hydrogen technology, there are still significant opportunities for development. A representative from a hydrogen energy company stated, “The green hydrogen production chain is still underdeveloped, especially in the downstream application sector, where the differences in energy utilization efficiency and business models are quite significant.”
“Forecasts suggest that by 2026 and 2027, the green hydrogen production industry in our country will show remarkable progress,” the representative added.
Under the carbon reduction target framework, green hydrogen is emerging as a critical component in reducing carbon emissions, making the development of the hydrogen production chain a key focus for the market. On March 26, the Ministry of Ecology and Environment released a report titled “Market Dynamics for Carbon Emission Rights Trading,” indicating that sectors like steel, cement, and hydrogen production will be included in the national carbon market management. The carbon market will gradually promote the application of green hydrogen in the industrial sector, enhancing the growth of the green hydrogen production chain.
Industry insiders believe that policy incentives and collaboration among stakeholders in the hydrogen production chain are crucial for accelerating the development of the green hydrogen sector.
New Product Innovations
At the recent fourth session of the China National Hydrogen and Fuel Cell Industry Development Conference, many companies showcased their latest technologies and products in the green hydrogen field. For example, Zhongchuan Technology unveiled a new generation of 4000 standard alkaline electrolyzers, which are safe, efficient, and suitable for large-scale new energy applications.
Moreover, the conference highlighted software technologies that optimize the integration of hydrogen production processes, allowing for better efficiency and synergy in hydrogen production.
In addition, the conference introduced the second generation of alkaline electrolyzers for hydrogen production, which integrates advanced technology to improve operational efficiency and safety. These innovations are seen as a significant step forward in the industry.
Looking ahead, industry experts express that the growth of the green hydrogen production chain hinges on sustained technical innovation and supportive policies. “The development of hydrogen production technology and electrolyzers must continue to evolve to ensure large-scale applications in the green hydrogen sector,” they stated.
Government Policies and Industry Collaboration
The National Energy Administration has committed to promoting the growth of the green hydrogen sector. By 2024, the administration aims to achieve a production capacity of 25 million tons per year for renewable energy-based hydrogen, which is expected to constitute around 50% of the total hydrogen production in the nation.
In recent years, national and regional policies have been introduced to support the development of green hydrogen production. The “Guiding Opinions on the Development of the Hydrogen Energy Industry” outline the strategic framework for hydrogen energy management in China, aiming to increase the share of renewable energy in hydrogen production to 10-20 million tons by 2025 and to establish a robust hydrogen production system by 2030.
Despite the challenges in advancing green hydrogen technology, there are still significant opportunities for development. A representative from a hydrogen energy company stated, “The green hydrogen production chain is still underdeveloped, especially in the downstream application sector, where the differences in energy utilization efficiency and business models are quite significant.”
“Forecasts suggest that by 2026 and 2027, the green hydrogen production industry in our country will show remarkable progress,” the representative added.
In conclusion, the development of the green hydrogen sector will require ongoing government support and the collaboration of industry stakeholders to overcome existing challenges and achieve sustainable growth.
