At last, the world is getting its much-needed boost of a clean energy source!

China, through its support of technology and innovation industries, has encouraged Chinese investors to finance companies working on improving the production and use of green hydrogen.

But what exactly is green hydrogen one might ask?

Green Hydrogen

Green hydrogen is a colorless gas produced by using renewable energy to power electrolysis, splitting water molecules into hydrogen and oxygen in the process. 

Similar to regularly processed gas, green hydrogen serves a wide array of purposes, although with an extremely low carbon footprint in comparison to the former. 

99% of the world’s hydrogen fuel comes from carbon-based sources. The finitude of fossil fuel has threatened the continuation of the production of regular hydrogen, pushing for innovative, ecofriendly, and sustainable measures.

Green hydrogen’s cost of production is higher than regularly processed gas, with each kilogram costing $6 as of 2015. But the willingness to invest in renewable gas and the innovations taking place in the industry are lowering production costs, estimated to become $2 per kilogram by 2025, finally giving green hydrogen a competitive market edge.

China & Renewable Energy

In recent years, China adopted several measures to lower its carbon footprint and popularize green energy. Its effort to combat global warming has resulted in its adoption of solar power on a wide spectrum, exporting its practice to the rest of the planet.

Its next step is to support and facilitate the mass-production of green hydrogen by backing large firms developing the energy.

Li Weiqing, fund manager at JH Investment Management, which purchased shares of a company investing in the clean energy source, said “Hydrogen power is one of the ultimate solutions to achieve net-zero emissions.”

Both Beijing and Inner Mongolia are introducing strategies aiming at cultivating green hydrogen firms to show compliance with net-zero targets. This approach is strongly benefitting the sector as it expands its researches and innovations with no strings attached.