China takes lead in green hydrogen innovation, overtaking Japan

Reccessary has observed in a new article that China’s leadership in clean energy is expanding beyond just solar power. Japanese research firm Astamuse reports that Chinese companies have now overtaken Japan in holding the most patents related to low-carbon hydrogen technologies worldwide.

With growing interest in green hydrogen for transportation, top executives at Japanese automaker Toyota caution that if other nations don’t boost their investments, China may soon dominate the global supply chain for hydrogen-powered vehicles.

Astamuse examined 180,000 patents related to green hydrogen filed between 2013 and 2022, evaluating them across five key areas: production, storage, transport and supply, safety management, and end use. Their findings reveal that Chinese companies lead in overall competitiveness as well as in each of the first four categories.

By contrast, an earlier study analyzing 140,000 patents from 2011 to 2020 placed Japan first, followed by China. However, since China announced its carbon peak goals in 2020, it has been filing green hydrogen patents at twice the annual rate of Japan.

In 2022, China launched a national hydrogen strategy, elevating hydrogen to the same priority level as renewable energy. The plan targeted annual green hydrogen production of 100,000–200,000 tons by 2025—milestones that have already been exceeded. Although Japan introduced its hydrogen strategy earlier, China’s swift investments have accelerated the growth of its hydrogen sector at an impressive pace.

This surge in patent activity has significantly reduced the cost of hydrogen production equipment in China to just a quarter of the price in Europe, fueling strong local demand. According to the International Energy Agency (IEA), China now represents the world’s largest hydrogen market, accounting for 30% of global demand.

Zhang Xiaoguang, Chief Advisor at Daiwa Research Institute, explains that Chinese companies are ramping up capacity mainly to gain market share rather than to generate immediate profits. Building on their expertise in solar and wind energy, firms like LONGi and Sungrow are making significant moves into the green hydrogen sector.

This momentum is likely to extend into hydrogen-powered vehicles soon. Mitsumasa Yamagata, President of Toyota’s Hydrogen Business Unit, highlights that China already leads in hydrogen truck infrastructure and that hydrogen fuel costs there are only about one-third of those in Japan. Without increased investment from other countries, Chinese companies could come to dominate the hydrogen vehicle supply chain, just as they have in the electric vehicle market.

In response, Japan is providing subsidies to help bridge the cost difference between hydrogen and fossil fuels. It is also partnering with the United States and South Korea to advance hydrogen technologies. Meanwhile, the European Union is considering imposing restrictions on Chinese components in hydrogen projects to protect its own industries.

By Naila Huseynova