China has set a new target to produce 100,000 to 200,000 tons of carbon-free green hydrogen by 2025 while envisioning a more widespread use, the Reuters news agency reported on Wednesday with reference to the National Development and Reform Commission (NDRC) of China.
The NDRC said in a statement that China also aims to have about 50,000 hydrogen-fueled vehicles by 2025.
China is reportedly looking to hydrogen to help reduce carbon emissions from transportation and industry.
Green hydrogen is produced by breaking down water using electrolysis powered by renewable energy sources.
Producing hydrogen using natural gas or coal releases carbon emissions while using renewables such as solar and wind power does not.
China currently produces 33 million tons of hydrogen a year, with about 80% of it generated using coal and natural gas, and the rest mainly a by-product from industrial sectors, according to the Chinese government.
A consultancy company Chinese Clean Power Policy & Market Insights (Energy Iceberg) estimates that the country's current green hydrogen production stands at under 27 thousand tons per year.
Even though most of China's hydrogen is produced from fossil fuels, the potential of green hydrogen is huge since the country has the world's largest renewable power capacity, Reuters cites Wang Xiang, the Deputy Director of the High Technology Department at the NDRC as saying at a media briefing.
The China Hydrogen Alliance has estimated China's hydrogen demand will reach 35 million tons per year by 2030 and reach 60 million tons by 2050.
Almost all provinces and regions in China have included hydrogen into their development plans, and more than 120 green hydrogen projects are currently under development in the country.