The global race to develop green hydrogen is heating up, and China is emerging as a key player, attracting foreign firms with its vast market and supportive policies. This trend is reshaping the energy landscape, offering a sustainable alternative to traditional fossil fuels.
One notable example of this cross-border cooperation is Evonik, a German chemical company, which has set up a new pilot plant in Marl, North Rhine-Westphalia, to produce a high-performance membrane for Anion Exchange Membrane (AEM) electrolysis technology. This technology is crucial for making green hydrogen more cost-effective and accessible. The company's new Evonik AEM Center Shanghai, which opened in June, is dedicated to integrating this technology into hydrogen infrastructure, particularly in Asia and Europe.
This move by Evonik highlights the growing interest of foreign companies in China's green hydrogen sector. The country's clean energy sector is providing valuable insights and solutions to the global green industry and supply chain, with companies sharing the latest developments in green hydrogen production and low-cost production methods. Foreign-invested enterprises are also deepening localization cooperation, complementing China's industrial advantages.
A Swedish energy equipment company representative attending a recent seminar in Beijing emphasized China's leading advantages in green electricity production and equipment manufacturing. They noted that there is broad room for cooperation in areas such as green hydrogen and green shipping fuels. This sentiment is shared by other foreign companies entering the Chinese market.
In February 2025, Siemens became the preferred supplier and technology partner for China-based Guofu Hydrogen's production of electrolyzers and green hydrogen. Axel Lorenz, CEO of Process Automation at Siemens, emphasized the importance of building a sustainable hydrogen ecosystem that will play a crucial role in the global energy transition. Similarly, in July 2025, Hyundai set up a hydrogen energy research and development center in Guangzhou to develop hydrogen-powered fuel cell batteries.
China's green hydrogen industry is benefiting from a large market scale, declining costs, and policy support. Local governments are actively promoting new-energy hydrogen production projects and green hydrogen consumption scenarios, while accelerating the construction of inter-provincial and inter-regional hydrogen transmission pipelines, hydrogen refueling stations, and liquid hydrogen storage and transportation systems. These advantages have raised the growth prospects and investment space of the domestic green hydrogen sector, making it an attractive market for foreign companies to explore technology cooperation, equipment manufacturing, and end-use applications.
Despite being the largest hydrogen producer globally, China's hydrogen production is still dominated by fossil fuels. However, the country is making significant strides in green hydrogen production, accounting for half of the global green hydrogen production capacity, according to the Hydrogen Council. This shift towards green hydrogen is crucial for reducing carbon emissions and transitioning to a more sustainable energy future.
In conclusion, the global development of green hydrogen is gaining momentum, and China is at the forefront of this transformation. The country's market size, supportive policies, and industrial advantages are attracting foreign companies, fostering collaboration, and driving innovation. As the world seeks to decarbonize, green hydrogen is poised to play a pivotal role in the energy transition, offering a cleaner and more sustainable alternative to traditional energy sources.
