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Hydrogen: A game-changer in green energy transition

Hydrogen, as a green energy source, with multiple advantages; such as zero-carbon emissions, has huge potential for application in transportation, energy, and industrial sectors, according to the global consultancy Boston Consulting Group.

Hydrogen serves as one of the most important components and key technology pathways of zero-emission transportation, the report said, emphasizing that with the advances in fuel cell technology, expansion of hydrogen infrastructure, and strong policy support, the application of hydrogen in the transportation sector has witnessed a rapid growth.

Hydrogen-powered fuel cell vehicles are expected to become the engine for the growth of hydrogen demand in the short to medium term. In addition, the most promising use of hydrogen is believed as a carrier for energy storage and power generation, the report said.

In recent years, decarbonization has driven the development of green hydrogen as the replacement for gray hydrogen. The report noted that the existing infrastructure for the transmission, storage, and utilization of hydrogen will effectively bolster the rapid adoption of green hydrogen in the industrial sector.

Green hydrogen refers to hydrogen produced by renewable energy sources, while gray hydrogen means hydrogen produced from fossil fuels.

The report was released by BCG and the team of Ouyang Minggao, an academician of the Chinese Academy of Sciences and the chairman of the International Hydrogen and Fuel Cell Association.

China is creating a favorable environment for the hydrogen industry in the process of peaking its carbon emissions before 2030 and achieving carbon neutrality before 2060, the report added.

The National Development and Reform Commission and the National Energy Administration have jointly released the country's first medium to long-term plan (2021-35) to promote high-quality development of the hydrogen industry.

By 2025, China plans to put in place a relatively complete hydrogen energy industry development system, with significantly improved innovation capability and core technologies and manufacturing processes basically mastered, according to the plan.

The China Hydrogen Alliance predicts that by 2025, the nation's hydrogen energy industry will be valued at 1 trillion yuan ($137.7 billion). By 2050, it said, hydrogen energy is expected to account for more than 10 percent of its overall energy system.

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