Core Insights - The low-emission hydrogen industry, despite facing several development challenges, is expected to play an irreplaceable role in specific areas of the net-zero scenario in the future [1][2] - China currently holds a competitive edge in the international hydrogen market due to its "cost-effective" hydrogen products, but it needs to enhance internal capabilities and strengthen international cooperation to maintain this advantage [1][4] Industry Overview - Low-emission hydrogen currently accounts for a negligible portion of total hydrogen production, but its output is projected to grow due to decreasing costs, decarbonization demands, and policy incentives [2][3] - In 2024, the production of low-emission hydrogen is expected to increase by 10%, reaching 1 million tons, but still less than 1% of global hydrogen production [2][3] - By 2030, the share of low-emission hydrogen is anticipated to rise to around 4% as the cost gap between fossil fuel-based hydrogen and low-emission hydrogen narrows [3] China's Position - China aims to produce 100,000 to 200,000 tons of renewable hydrogen annually by 2025, positioning hydrogen as a strategic industry [4][5] - China dominates the global market for electrolyzer deployment and manufacturing, accounting for 65% of installed capacity and nearly 60% of global electrolyzer manufacturing capacity [4][5] - The country is expected to leverage its large-scale production capabilities to capture a significant share of the global hydrogen market [4][5] Recommendations for Development - Increased investment in infrastructure is necessary to enhance storage, pipelines, and hydrogen refueling stations, along with breakthroughs in locally produced components [5][6] - The industry should focus on technological upgrades, particularly in high-performance electrolyzers and alternative catalysts, while fostering domestic demand through industrial applications [5][6] - Collaboration between government and industry is essential to avoid homogenized competition and to establish differentiated policies that cater to local conditions [6] International Cooperation - China and Europe can engage in complementary cooperation in the hydrogen sector, focusing on joint research and development of new electrolyzers and advanced storage systems [6] - Establishing common sustainability standards will be crucial for China to integrate into the European supply chain and meet regulatory requirements [6] - Tri-party cooperation in emerging markets can facilitate the establishment of hydrogen export corridors, with China providing low-cost equipment and Europe contributing regulatory expertise and advanced technology [6]