China Surpasses Japan in Green Hydrogen Innovation and Patents

A study shows that China has surpassed Japan in green hydrogen patents and innovation. Major investments are fueling China’s growth, leading to drastic cost reductions and increased competitiveness. Concerns arise from industry leaders in Japan about potential dominance by Chinese firms in the hydrogen vehicle supply chain. Countries are taking measures to respond to this competitive threat.

China is making significant strides in the green hydrogen sector, outpacing Japan in innovation and patent activity. A recent study conducted by Astamuse, a Japanese research firm, reveals that from 2013 to 2022, Chinese companies have emerged as global leaders in low-carbon hydrogen patents. The findings highlight the growing competitiveness of China as it ramps up its clean energy initiatives.

Toyota’s senior executives caution that without increased international investments, China could end up dominating the global hydrogen vehicle supply chain. The study assessed a total of 180,000 patents across five crucial categories including production and end-use, showing Chinese firms leading in all aspects, particularly in overall competitiveness. This marks a notable shift from a previous analysis of 140,000 patents from 2011 to 2020, which ranked Japan higher.

Since China announced its carbon peak targets in 2020, its green hydrogen patent filings have surged, reaching levels twice that of Japan. The Chinese government has adopted a national hydrogen strategy that places hydrogen at the forefront of its clean energy transition. With a goal to ramp up green hydrogen production to 100,000 to 200,000 tons by 2025, this target has already been surpassed largely due to swift investment in the sector.

Moreover, a surge in patents has helped to reduce production costs for hydrogen equipment in China to about 25% of European prices, fueling local demand. According to the International Energy Agency, China currently stands as the globe’s largest hydrogen market, representing 30% of overall demand. This stark shift highlights the country’s growing influence in green energy.

In parallel, major Chinese solar firms are entering the hydrogen market, with companies like LONGi and Sungrow leveraging existing expertise in solar and wind to capture a rapidly growing market. Zhang Xiaoguang from Daiwa Research Institute emphasizes that these firms are expanding primarily to gain market share rather than immediate profits.

The development in hydrogen-powered vehicles could soon follow, given that China is advancing in hydrogen truck infrastructure, with fuel costs reported to be one-third of those in Japan. Mitsumasa Yamagata from Toyota warns that if other nations do not enhance their investments, China will likely repeat its electric vehicle dominance in the hydrogen vehicle supply chain.

In response, Japan is introducing subsidies to bridge the cost disparity between hydrogen and fossil fuels while also collaborating with the United States and South Korea on hydrogen technology advancements. Concurrently, the European Union is contemplating measures to restrict Chinese components in hydrogen projects to protect its own industries from the fast-paced Chinese competition.

In summary, China’s rapid growth in the green hydrogen sector is reshaping the global landscape, overtaking Japan in patent activities and market demands. With robust governmental support and substantial investments, China’s dominance seems poised to expand. Meanwhile, Japan and other countries are racing to catch up, introducing subsidies and international collaborations, underscoring the competitive nature of the hydrogen energy race.

Original Source: reccessary.com