Caixin
Oct 11, 2024 08:45 AM
CX DAILY

CX Daily: Why Making Green Hydrogen Is Keeping Producers in the Red

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Hydrogen storage tanks at the Kuqa Green Hydrogen Demonstration Project in Kuqa City, Xinjiang Uygur autonomous region. Photo: VCG
Hydrogen storage tanks at the Kuqa Green Hydrogen Demonstration Project in Kuqa City, Xinjiang Uygur autonomous region. Photo: VCG

Green hydrogen /

In Depth: Why making green hydrogen is keeping producers in the red

China’s green hydrogen sector is at a crossroads. Even after a flurry of investment and development activity, the high price of the end product is preventing the technology from breaking through, as firms bleed red ink.

This challenge has been compounded by a classic chicken-and-egg dilemma — expensive production processes mean high per-unit costs are limiting downstream market penetration, and the lack of widespread take-up is holding back efficiencies of scale.

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