Investors benefit from predictable policy environment

China has cemented its position as the undisputed heavyweight champion in the global hydrogen economy, capturing nearly a third of worldwide capital commitments as the sector aggressively pivots from experimental pilot projects to a trillion-yuan commercial reality, according to Hydrogen Council CEO Ivana Jemelkova.

Out of an estimated $110 billion in global investments committed to hydrogen development over the past five years, China currently accounts for $33 billion, data from the council show.

Furthermore, the country represents more than half of the world's total commitments to renewable, or "green", hydrogen, with average project capacities vastly outperforming those in developed countries.

This massive influx of capital is moving the industry beyond conceptual memorandums of understanding and into tangible, large-scale engineering, it said.

Hydrogen is no longer just MOUs and ideas, it is now focused on concrete targets in construction, commissioning and operation, said Jemelkova.

She highlighted that China's integration of hydrogen into its clean energy framework enables investors to take calculated risks and seamlessly scale from demonstrations to massive deployments.

"The average project size in China is significantly larger than in other regions, as hydrogen is recognized as a strategic priority, fully integrated into China's top-level design for a clean, secure and resilient energy system," Jemelkova said. "Investors in China benefit from clarity, predictability and certainty, enabling companies to take risks, innovate and scale projects from pilots and demonstrations to large-scale deployment."

Industry analysts attribute China's commanding lead to a highly predictable policy environment and rigorous top-level design.

By elevating hydrogen to a strategic priority in the 15th Five-Year Plan (2026-30), policymakers have provided the certainty required for heavy asset investments.

As the country enters the 15th Five-Year Plan period, the government aims to cultivate hydrogen as a vital future industry, integrating hydrogen into national energy planning through large-scale "wind-solar-hydrogen-ammonia-alcohol" bases, according to Bian Guangqi, deputy director-general of the National Energy Administration's science and technology department.

The NEA aims to continue accelerating technological innovation, building a comprehensive standard and regulatory system while also expanding high-level global cooperation, he said.

Domestic enterprises are also leveraging this stability — alongside rapid declines in the cost of core manufacturing equipment, such as a 30 percent drop in alkaline electrolyzer prices — to build massive, commercially viable production hubs integrated with wind and solar bases.

Envision Energy is playing a pioneering role in advancing China's green hydrogen-ammonia sector toward commercialization.

The first phase (320,000-metric-ton capacity) of its 1.52-million-ton hydrogen-ammonia project — the largest facility of its kind in the world — in Chifeng, Inner Mongolia autonomous region, was commissioned in July last year, demonstrating that producing green ammonia from renewable power is economically viable and commercially feasible.

The top-level design is intended to guide "patient capital" toward long-term goals while opening commercial channels for industries that are ready to scale, said Lou Yimin, senior vice-president and chief product officer of Envision Energy.

Lou believes that current policy direction provides substantial opportunities for companies like Envision that are capable of delivering full-stack green hydrogen solutions.

For Envision's hydrogen business, it is precisely this forward-looking policy guidance that enables it to focus on downstream market development and application, having already overcome technical bottlenecks related to core hydrogen production materials and system efficiency, Lou added.

Despite the momentum, global hurdles remain. While worldwide capital commitments have surged tenfold since 2020, industry leaders caution that another tenfold increase is necessary to achieve full commercial maturity and scale, according to the council.

The council has called for unified global standards to measure and certify the clean attributes of hydrogen and its derivatives — such as green ammonia and methanol — ensuring a level playing field for international trade.

As nations seek to break traditional fossil fuel dependencies and secure reliable supply chains, China's robust manufacturing scale and technological innovation are becoming indispensable assets, said Jemelkova.

By deepening cross-border commercial partnerships and exporting high-value, zero-carbon equipment, China is not only securing its own energy resilience, but also providing a vital, pragmatic engine for the global decarbonization roadmap, she said.