Full Title: Transitioning China’s Industries: Creating Clusters for Large-scale Green Hydrogen Integration
Author(s): Shuyi Li, Peishan Wang, and Yujun Xue
Publisher(s): Rocky Mountain Institute
Publication Date: September 8, 2024
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Description (excerpt):
The industrial sector is currently China’s largest consumer of hydrogen and is expected to continue dominating hydrogen utilization — at an estimated 60 percent of the overall consumption.
China has carried out extensive efforts in green hydrogen and its utilization in industry. The large-scale utilization of green hydrogen in industry requires addressing two main challenges: (1) the supply of green hydrogen must reach a significant scale and stability, and (2) the high cost of hydrogen utilization needs to be addressed.
To address these challenges, this research introduces a “cluster development” model for efficiently deploying green hydrogen on a large scale in industry. This approach prioritizes locations where the production and consumption of green hydrogen are well aligned, aiming to optimize the economic feasibility through a “production-storage-transportation-utilization” green hydrogen system while deploying coordination methods based on technical feasibility. The goal is to ensure a large-scale, consistent, and stable supply of green hydrogen at the lowest cost.