China Targets Green Hydrogen, Ammonia, and SAF in Energy Policy Shift
● NEA targets low-carbon industrial parks, offshore wind hydrogen, and new outlets to cut curtailment
China’s National Energy Administration (NEA) has confirmed that hydrogen and other green fuels will play a central role in its next five-year plan (2026–2030), as the country moves to decarbonize beyond the power sector. In a policy opinion document released Wednesday, the NEA urged power producers and provinces to help local governments scale up green hydrogen, ammonia, methanol, and sustainable aviation fuel (SAF) industries. The plan prioritizes industrial usage over grid feed-in as China looks to mitigate worsening renewable power curtailment.
Hydrogen is expected to provide a new offtake for surplus wind and solar power, particularly in energy-heavy industries like steel, shipping, and fertiliser. The NEA specifically encouraged coastal regions to explore offshore wind-to-hydrogen production, noting the sector’s underdevelopment. Green hydrogen production would rely on dedicated renewables, avoiding grid congestion and bolstering energy independence, while SAF, methanol and ammonia pathways help diversify China’s fuel portfolio.
Renewable curtailment emerges as key bottleneck, with industrial parks tapped for electrified heat
The NEA’s move follows rising concerns over renewable energy curtailment in the world’s largest power system. Wood Mackenzie forecasts that 21 provinces will see solar curtailment rates above 5% in the coming decade, up from just 10 in the first eight months of 2025. As China builds out wind and solar fleets at unprecedented scale, traditional grid capacity is failing to keep pace—forcing planners to turn to downstream electrification and molecule conversion.
The NEA has flagged industrial parks as a strategic deployment target, given that industrial users account for 60% of China’s total electricity demand. Renewable-powered heating, electrolytic hydrogen production, and derivative fuel synthesis could be co-located in these parks, achieving local energy balancing while advancing carbon neutrality goals. Integrated energy systems of this nature are increasingly being trialled in cities across Inner Mongolia, Shandong, and Hebei.
China Targets Green Fuels in Energy Policy Shift - Fuelcellsworks
China's National Energy Administration aims to scale up green hydrogen, ammonia, and sustainable aviation fuel to tackle renewable curtailment and decarbonize industries.
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