Opportunities for Hydrogen Production with CCUS in China
Hydrogen and carbon capture, utilisation, and storage (CCUS) are set to play important
and complementary roles in meeting People’s Republic of China’s (hereafter, “China”)
pledge to peak carbon dioxide emissions before 2030 and achieve carbon neutrality
before 2060. Hydrogen could contribute to China’s energy system decarbonisation strategy,
such as through the use as a fuel and feedstock in industrial processes; in fuel cell
electric transport, and for the production of synthetic hydrocarbon fuels for shipping
and aviation. The analysis of scenarios in this report suggests that while hydrogen
from renewable power electrolysis could meet the majority of hydrogen demand by 2060,
equipping existing hydrogen production facilities with CCUS could be a complementary
strategy to reduce emissions and scale-up low-emission hydrogen supply.
This report was produced in collaboration with the Administrative Centre for China’s
Agenda 21 (ACCA21). It explores today’s hydrogen and CCUS status in China, and the
potential evolution of hydrogen demand in various sectors of the Chinese economy through
2060, in light of scenarios developed independently by the IEA and the China Hydrogen
Alliance. The report also provides a comparative assessment of the economic performance
and life cycle emissions of different hydrogen production routes. Finally, the report
discusses potential synergies and regional opportunities in deploying CCUS and hydrogen,
and identifies financing mechanisms and supporting policies required to enable the
deployment of hydrogen production with CCUS in China.