China currently uses hydrogen fuel the most. Its annual consumption significantly surpasses that of any other nation.
China Leads Global Hydrogen Consumption
China stands as the world's largest consumer and producer of hydrogen, utilizing over 24 million tonnes of the gas annually. This substantial usage highlights its prominent role in the global hydrogen economy.
Why China is the Foremost User of Hydrogen
Hydrogen, often referred to as a versatile industrial feedstock, is predominantly used in a variety of heavy industrial processes rather than solely as a direct fuel for transportation or power generation. China's vast industrial sector drives its high demand for hydrogen. Key applications include:
- Ammonia Production: A primary component in fertilizers, ammonia synthesis is a major consumer of hydrogen. China, being a global agricultural powerhouse, has a massive demand for fertilizers.
- Petroleum Refining: Hydrogen is crucial in refineries for processes like hydrocracking and hydrotreating, which remove impurities (like sulfur) from crude oil to produce cleaner fuels.
- Methanol Production: Methanol is a fundamental chemical used in numerous products, from plastics and paints to formaldehyde. Hydrogen is a key ingredient in its synthesis.
- Steel Production: Emerging technologies, particularly green steel production, are exploring hydrogen as a reducing agent to replace coal, aiming to decarbonize the steel industry.
The Scale of China's Hydrogen Economy
China's dominance in hydrogen extends beyond consumption; it is also the largest producer. This dual leadership positions the country at the forefront of the global hydrogen landscape, influencing both supply and demand dynamics. As the world increasingly looks towards hydrogen for decarbonization, China's experience and scale in handling hydrogen provide unique insights into its industrial integration.
Global Context of Hydrogen Use
Globally, hydrogen is a critical industrial commodity, with its production largely dominated by fossil fuels (grey hydrogen). However, there is a growing push towards "green hydrogen," produced via electrolysis powered by renewable energy, as a key component of a cleaner energy future. Countries like China are exploring strategies to shift towards cleaner hydrogen production methods to meet their vast industrial needs while simultaneously pursuing carbon neutrality goals. This transition is essential for industries that are difficult to electrify directly, offering a pathway to reduce emissions from heavy industry and long-haul transport.