China prepares plan to allocate major hydrogen projects — OilPrice

China’s National Development and Reform Commission (NDRC) is developing a plan for the rational allocation of major projects in the hydrogen sector. As OilPrice reports, the authorities seek to curb excess capacity amid overheated investment in clean hydrogen production projects.

NDRC representative Ren Zhongbao said at a briefing that excessive investment is being observed in certain segments of the hydrogen industry. According to him, central and local authorities should carefully assess projects to avoid ill-considered investments and wasted funds.

Concerns over excess capacity

China has already faced excess capacity and price competition in solar power amid the rapid expansion of installed capacity and equipment exports. Battery production has also come under increased state scrutiny due to signs of excess capacity.

More current news is available on the UA.News Telegram channel Telegram.

The country’s authorities are seeking to prevent a similar situation in the hydrogen industry, where both investment and the number of new projects are growing simultaneously.

Electrolyzer manufacturing capacity exceeds demand

According to the International Energy Agency, China’s annual electrolyzer manufacturing capacity amounted to 35 GW in 2025, while demand was below 2 GW. The agency noted that the significant excess capacity intensified competition among manufacturers: winning auction bids fell to $170 per kilowatt, below full cost.

According to a DNV report, China accounts for around 60% of global electrolyzer deployment and investment decisions in this area. Analysts link lower production costs to technology investments, local supply chains, and access to low-cost capital.