Chinese investors see opportunities for greater profits in companies that manufacture or use green hydrogen, a clean energy source that most governments believe will help them fulfill mid-century climate targets.
So far, the sector has provided a safe haven from government crackdowns on technology and education firms, which Beijing accuses of aggravating inequality and raising financial risk. As China tightens controls, industries that drive growth through innovation and technology are expected to earn support.
The sector is gaining as local governments, including as Beijing and Inner Mongolia, implement programs to cultivate green hydrogen enterprises in order to meet net-zero ambitions. China will account for almost two-thirds of the world’s electrolyzers, which are used to make hydrogen by separating water, by the end of 2022.
More than 20 provinces and 40 cities in China have issued development plans for hydrogen energy infrastructure worth trillions of yuan.