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Since it was first mentioned in the government work report in 2019, hydrogen energy has seen a rapid rise in interest, moving from strong policy support to substantial capital investment. On October 28 of this year, the \"****Suggestions on Formulating the 15th Five-Year Plan for National Economic and Social Development\" (hereinafter referred to as the \"Suggestions\") identified hydrogen energy as a \"future industry,\" reigniting enthusiasm in the industrial sector. Behind the hype, what is the real picture of the hydrogen energy industry? Reporters from China Chemical Industry News recently interviewed several experts working at the forefront of this industry. They told the reporters that the hydrogen energy sector has moved beyond single-point demonstrations and entered a golden period of five years characterized by coordinated development across the entire value chain, including production, storage, transportation, utilization, and research. However, this upgrade cannot be achieved overnight; in the future, it is necessary to adhere to a long-term perspective, abandon the impulsive attitude of seeking quick results, and move forward steadily with strategic patience and a long-term vision. The industry has reached a turning point in its transformation, with long-term thinking becoming the key factor for development. Reporters have learned that as top-level planning continues to improve, technical barriers are gradually overcome, and infrastructure gets better, the hydrogen energy industry is at a crucial juncture where it is shifting from being driven solely by policies to being driven by both policies and market forces. “During the 14th Five-Year Plan period, industrial policies at all levels continued to play a crucial role; hydrogen production capacity and output across the country increased steadily, with renewable energy-based hydrogen production projects being concentrated in specific regions. Data shows that by the end of 2024, the national hydrogen production capacity exceeded 50 million tons per year, an increase of about 1.6% on a year-on-year basis ； The capacity for industrial by-product hydrogen production is approximately 10.7 million tons per year, representing a year-on-year increase of around 5.3% ； The production capacity for hydrogen production via renewable energy electrolysis across various regions exceeds 120,000 tons per year ； Over 540 hydrogen refueling stations have been built. Behind the growth of data are continuous technological breakthroughs. Currently, the industry is working on developing technologies for various key stages in the hydrogen energy supply chain, and many of these efforts have already yielded results. For example, Sinopec demonstrated the operation of China’s first 100-kilowatt solid oxide electrolysis water splitting hydrogen production side unit at the Zhongyuan Oilfield ； Renewable hydrogen from the Ningdong Carbon Emission Reduction Demonstration Zone in Ningxia has been successfully integrated into coal-based ammonia synthesis plants, enabling the coupled use of renewable hydrogen in coal chemical industries. The capital market has once again turned its attention to the hydrogen energy sector, with the performance of several listed companies in this field showing significant growth in the first three quarters of 2025. Specifically, the net profit attributable to the parent company of 34 companies increased by more than 100% on a year-on-year basis in the first three quarters. Among them, 17 are over 200% ； Five companies saw growth exceeding 500%, namely Beijing CRRC, Tianwo Technology, Zhongfu Shenying, Sichuan Jinding, and Corun. Does this mean that the hydrogen energy industry has overcome its challenges and entered a phase of rapid development? “At present, **strong support has been provided at the policy level; subsidies for the hydrogen energy industry are being implemented step by step, and industry standards are continuously being improved. What the industry needs to explore is how to ensure the long-term stable and cost-effective operation of the entire supply chain. ”Fu Chungan, Executive Vice President of the China Industrial Gases Industry Association, said. Many experts point out that \"long-term thinking\" is precisely the core approach for the industry’s future development. So, how exactly should this be implemented? Green hydrogen faces the dual challenges of cost and market issues; to pursue a development strategy that involves multiple types of hydrogen, it is necessary to adopt a long-term approach. First and foremost, it is essential to understand the current stage of development of this industry, and to support the coexistence of various sources of hydrogen, such as hydrogen produced as a by-product of industrial processes and hydrogen generated from renewable energy sources. “As a flexible low-carbon energy source, green hydrogen can be regarded as one of the best options for achieving net-zero emissions. ”Fu Chunqian said, “However, based on the results of the surveys conducted by the association, the green hydrogen industry currently faces challenges in both the hydrogen production and application phases.” ”From the hydrogen production perspective, costs remain high at present. Fu Chunggan pointed out that renewable energy sources such as wind and solar power, which are used to produce green hydrogen, have the limitation of unstable supply, requiring grid regulation; moreover, the high prices for electricity when it is fed into the grid and taken out of it result in high costs for hydrogen production. In the downstream market, Fu Chunqian said that currently green hydrogen is primarily used in the transportation fuel sector, with little use in the industrial field. He explained, “Currently, most hydrogen production facilities aim to be built on-site, without taking into account the fact that hydrogen is a hazardous chemical, and thus they fail to obtain safety production licenses.” Without a safety production license, it cannot enter the industrial market. ”However, the transportation fuel market is relatively narrow. Fu Chunggan explained that currently, the number of hydrogen fuel cell vehicles is still low, and the number of hydrogen refueling stations is limited as well. Due to these constraints, few green hydrogen companies are able to operate in a cost-effective manner. Data shows that there is still a certain gap between the current number of hydrogen fuel cell vehicles in our country and the target of 50,000 vehicles by 2025 as planned. The green amine industry, which has gained significant popularity recently, is also regarded as an important avenue for utilizing green hydrogen. In this field, there are also high costs as a challenge, along with issues related to carbon footprint certification both domestically and internationally. Fu Chunggan believes that the green amine industry still has a long way to go before it can achieve large-scale utilization of green hydrogen. “Different regions have varying endowments of resources. For example, areas rich in wind and solar resources can prioritize the development of hydrogen production from renewable energy, while regions with many chemical industrial parks can prioritize the recovery of hydrogen produced as a by-product of industrial processes. ”Fu Chunggan said, \"At present, hydrogen produced as a by-product of industry seems more likely to achieve economic viability at an earlier stage.\" ； For hydrogen production from renewable energy, it is necessary to promote targeted technological breakthroughs and integrate it with energy storage in order to reduce costs. ”**The \"China Hydrogen Development Report (2025)\) released by the National Energy Administration shows that in 2024, China’s hydrogen consumption amounted to 36.5 million tons, with hydrogen used in the production of synthetic methanol and synthetic ammonia accounting for over 50% of this total consumption ； The share of refining and coal chemical industries is less than 30%, while the share of sectors such as transportation, heating, and metallurgy is less than 20%. In this regard, experts point out that as the cost of green hydrogen is not yet comparable to that of gray hydrogen, its large-scale application will rely primarily on scenarios where it replaces gray hydrogen in industrial sectors. Moreover, the pace of development of China’s green chemical industry will also play a significant role in determining the progress of the green hydrogen industry. Expanding downstream markets from small to large; activating business cycles in specific scenarios. To implement a \"long-term approach,\" it is necessary to work step by step, from small scales to larger ones, and through coordinated efforts among various parties, in order to gradually expand the application markets. Wang Qingbin, general manager of Beijing Paireihua Hydrogen Energy Technology Co., Ltd. (hereinafter referred to as Paireihua Hydrogen), said, “The development of hydrogen energy is a gradual process. Technologies such as fuel cell vehicles and high-pressure hydrogen storage containers are only introduced on a large scale after going through stages of development and proving to be feasible and cost-effective.” To rush toward large-scale deployment before the industry chain is mature is like giving a kindergarten child a set of graduate-level courses – it simply won’t work. ”According to Wang Qingbin, the Huafeng Clean Energy Project in Wu’an, Hebei, which was planned and implemented by Peryhua Hydrogen, is a successful example of small-scale commercial operation based on the purification and utilization of hydrogen produced as a by-product of coking. This project creates a commercial closed loop by constructing comprehensive energy stations that supply hydrogen via pipelines to refill heavy trucks used for transporting steel and raw materials. “In a place in the south, some companies also wanted to use hydrogen produced as a by-product of industrial processes to power urban buses, but they were not successful due to unstable hydrogen supply. ”Wang Qingbin said. Why has the Wu’an Huafeng project been successful? Wang Qingbin believes that this lies in the unique conditions in specific scenarios and industrial collaboration. Firstly, as one of China’s key steel production bases, Wu’an has local enterprises that possess a stable supply of hydrogen and the necessary transportation capacity ； Secondly, honest cooperation among enterprises in various sectors such as hydrogen supply, hydrogen refueling, capacity assurance, and equipment research, development, and manufacturing ； Thirdly, the project aligns with the carbon reduction goals set by enterprises and local governments, thereby receiving strong support from these local authorities and fully safeguarding the confidence of all parties involved in the project collaboration. The Meijin Hydrogen project in Liuzhi Special Zone, Liupanshui, Guizhou – which was selected for a hydrogen energy pilot program not long ago – produces high-purity hydrogen with a purity of 99.999% by utilizing industrial waste gas, thereby turning coking plant gas into a valuable resource. What is even more noteworthy is that the pressure swing adsorption technology used in this project reduces the cost of hydrogen production to around 10 yuan per kilogram. “The value of the Liupanshui model lies in its replicability. ”Fu Chungan said, “First, we need to activate industrial by-product hydrogen resources; second, we should target high-value applications such as heavy-duty transportation; and finally, we must use a combination of policies to overcome the bottlenecks in the industry chain.” For provinces such as Hebei, which has a coking capacity of 20 million tons, and Jiangsu, which produces 130 million tons of steel, this integrated approach that combines resources, technology, and application scenarios might well be the key to unlocking the trillion-dollar hydrogen energy market. ”Collaboration among multiple parties creates prospects for mutual success. The industries of the future are embracing the future; despite numerous challenges, experts remain optimistic about the prospects of the hydrogen energy industry. The Recommendations issued on October 28 proposed promoting quantum technology, biomanufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and sixth-generation mobile communications to become new drivers of economic growth. Hydrogen energy has been explicitly included in the category of \"future industries,\" granting it a **strategic status». This provides a clear direction for the development of these industries as well as policy support, and it also serves as an encouragement for those working in this field. In response, Fu Chung-qian said that the prospects for hydrogen energy are bright, and maintaining confidence while making steady progress is the path the industry should follow in the future. “In the future, more emphasis should be placed on improving ‘quality’, and consideration should be given to how to achieve long-term, stable operations. The China Industrial Gases Industry Association is currently working to promote the development of hydrogen storage and liquid hydrogen storage technologies, foster industrial cooperation on an international scale, and help the industry achieve sustainable growth. ”Fu Chunqian said. Wang Qian, a researcher at the Zhongshan Advanced Cryogenic Technology Institute and head of the Scientific Research and Technology Department, told reporters that liquid hydrogen storage has significant advantages; it can address various issues in the hydrogen energy industry such as high costs and difficulties in storage and transportation. There are two potential application areas for it: one is to use hydrogen fuel cells to generate electricity, and the other is to convert hydrogen into chemical raw materials for further use, which could help expand the downstream applications of hydrogen energy. According to her, the research team has made a series of breakthroughs in key equipment, developing hydrogen liquefaction systems of various capacities ranging from 16 liters per day to 5 tons per day, and has mastered the corresponding processing technologies for capacities of 10 tons to 30 tons per day. Currently, the team is advancing demonstration applications in Zhongshan City, with the plan to establish a comprehensive megawatt-scale energy storage demonstration project based on liquid hydrogen by 2028. Wang Qingbin pointed out that companies in the hydrogen energy industry chain should also adopt a \"long-term perspective\". He specifically talked about the issue of vicious competition in the industry. It is understood that the hydrogen energy industry is showing signs of \"intensifying\" competition. In the case of upstream electrolyzers, domestic production capacity is currently too concentrated; in order to capture market share, some companies blindly increase their hydrogen production capacity and deliberately lower product prices. Lacking innovation and a long-term perspective, this situation poses potential safety risks to the development of the industry. Wang Qingbin told reporters that since 2022, the prices of electrolyzers in China have almost halved. “The development of the hydrogen energy industry is a long-term process. In this process, enterprises must adhere to the principle of innovation and striving for excellence: internally, they should focus on specific niche areas, continuously work to strengthen and improve their performance, and enhance their core competitiveness ； Externally, it advocates honest cooperation, rejects \"cut-throat competition,\" and strives to create a win-win situation. ”Wang Qingbin said.