Written by: Fatima Younes
Hydrogen projects in China are facing a noticeable slowdown in implementation rates during 2026 compared to last year, despite the significant ambitions adopted by the country in this sector. Reports indicate that the sector is transitioning from pilot projects to large-scale production; however, the volume of major green projects remains modest when compared to the total production recorded in 2025.
Comparison between current production and targets
Data showed that the Baotou pilot project, which produces about 7.8 thousand tons of green hydrogen annually, represents a very small percentage, not exceeding 0.02% of China's total production, which reached 39 million tons in 2025. Inner Mongolia also emerges as a key producer with a capacity reaching 12.7 thousand tons, equivalent to 0.03% of total production.
Expansion in infrastructure and practical applications
China is currently working on developing an integrated hydrogen value chain, including production, storage, transport, and utilization. Among the most notable efforts is the construction of a 195-kilometer hydrogen transport pipeline connecting the Bayan Obo mining area to the city. On the transportation side, practical applications have begun, including the operation of hydrogen-powered heavy trucks and buses, in addition to the launch of about 1,000 motorcycles equipped with solid storage units in May 2026.
Operational challenges and geographical locations
Although China possesses more than half of the world's green hydrogen production capacity, there are criticisms regarding the locations of the projects, which are far from the target industrial zones. Previous studies also revealed that a small percentage of the announced projects were actually operational, with about 20 hydrogen, ammonia, and green methanol projects suspended in regions such as Inner Mongolia and Jilin due to weak implementation progress.
Geographical distribution of production capacities
Green hydrogen capacities in China are concentrated mainly in the Northeast region, which accounts for 45.7% of the total capacity, followed by the Northwest at 21.8%, and then North Beijing at 30%. The Jilin and Inner Mongolia provinces lead production capacity thanks to the abundance of wind resources in those regions.
