pvMagazine reports that China could produce green hydrogen at an average cost of $120/MWh, which is significantly less than other industrial contenders including Germany, the United States and Japan.
This is according to researchers at the University of Cologne in Germany, whose analysis highlights China’s cost advantages and the supply security risks associated with hydrogen imports.
GreenTechLead argues that China is arguably the strongest near-term contender for low-cost green hydrogen because of its domestic electrolyzer industry, renewable energy deployment and industrial hydrogen demand.
The International Energy Agency estimates put Chinese alkaline electrolyzer capital costs at approximately $500–$1,100/kW in 2025, compared with $1,900–$2,500/kW outside China.
China’s annual electrolyzer manufacturing capacity reached approximately 35 GW in 2025, while demand remained below 2 GW, creating substantial surplus manufacturing capacity.
Major projects include Sinopec’s 20,000-tonne-per-year Kuqa green hydrogen facility in Xinjiang and its planned 100,000-tonne-per-year green hydrogen project in Inner Mongolia.
China’s competitive advantage is strongest where inexpensive equipment can be combined with low-cost electricity and nearby industrial customers.
Sources:
pvMagazine, October 16, 2026. https://www.pv-magazine.com/2026/10/16/china-can-produce-the-cheapest-green-hydrogen/
GreenTechLead, October 16, 2026. https://greentechlead.com/renewable-energy/cheapest-green-hydrogen-countries-in-2026-china-saudi-arabia-india-chile-and-australia-lead-cost-and-investment-race-55990
Posted on CEN website: https://china-environment-news.net/2026/10/17/china-could-produce-green-hydrogen/
