China’s Hydrogen Ambitions: Potential Opportunities for Russia

Abstract

The development of the hydrogen industry represents one of the main trends in the modern energy policy of the nations all over the world. In the current geopolitical situation, Russia needs to revise its hydrogen policy. In this sense, China is much likely to be a potential significant partner. This paper identifies the prospects of the hydrogen production and consumption in China and estimates Russia’s export opportunities. China is the largest producer and consumer of hydrogen in the world, but the Chinese hydrogen industry is largely based on dirty technologies. Therefore, the Chinese government aims to increase the production of green hydrogen. In comparison with developed countries, China considers nuclear energy as the basis for transforming its energy system. The development of low-emission hydrogen industry will help China to solve the environmental problem, increase its export potential and develop high-tech industries for the production of related equipment. A special focus devotes to the analysis of the Chinese ammonia market, since it represents the greatest interest to Russian exporters. Nowadays one may observe obstacles to the development of the Russian-Chinese cooperation in this field. However, there is also a certain potential for Russian projects to export blue hydrogen to China.