Propelled by top-level policy design and groundbreaking commercial milestones, China's hydrogen energy sector is rapidly transitioning from a phase of localized demonstration to a huge industrial ecosystem, cementing the nation's role as a primary driver of global decarbonization.

Elevated to a forward-looking, strategic position in both the proposals for the 15th Five-Year Plan (2026-30) and the latest Government Work Report, hydrogen is no longer just a fuel of the future — it is a tangible catalyst for new quality productive forces today.

To facilitate this massive industrial leap, the country has rolled out a series of robust financial and infrastructural measures. The establishment of national low-carbon transition funds and the nationwide construction of integrated zero-carbon industrial parks are laying a solid foundation for a comprehensive hydrogen supply chain, said industry experts.

These initiatives are designed to lower the "green premium", bridging the gap between technological innovation and large-scale commercial application, they said.

According to forecasts by the China Hydrogen Alliance, hydrogen is expected to account for 60 percent of energy use in the nation's industrial sector by 2060.

During the 14th Five-Year Plan period (2021-25), China's hydrogen production capacity and output grew steadily, with both production and consumption consistently ranking first globally, it said.

"The 15th Five-Year Plan period is a crucial stage for building a modern industrial system, as well as a key point for the hydrogen industry to transition from being policy-driven to market-driven," said Bian Guangqi, deputy director-general of the National Energy Administration's science and technology department.

Data released by the administration reveal that green hydrogen production capacity derived from renewable energy leaped from 23,000 metric tons per year at the start of the 14th Five-Year Plan period to the current 250,000 tons per year.

Lou Yimin, senior vice-president and chief product officer of Envision Energy, said the top-level design is intended to guide "patient capital" toward long-term goals while opening commercial channels for industries that are ready to scale.

The current policy direction provides "massive opportunities" for companies like Envision that are capable of delivering full-stack green hydrogen solutions, he said.

The establishment of dedicated low-carbon transition funds at the national level signals that hydrogen energy will be incorporated into the country's long-term, strategic capital allocation framework, said Lou.

It is precisely this forward-looking policy guidance that enables Envision's hydrogen business to focus on downstream market development and application, having already overcome technical bottlenecks related to core hydrogen production materials and system efficiency, Lou added.

Lou also highlighted that the ability to "tame" volatile wind and solar power through physical AI-driven systems is critical for turning green hydrogen into a scalable and competitive "green oil".

Envision is playing a pioneering role in advancing China's green hydrogen-ammonia sector toward commercialization.

The first phase (320,000 tons capacity) of Envision Group's 1.52 million ton hydrogen-ammonia project, the largest facility of its kind in the world, in Chifeng, Inner Mongolia autonomous region, was commissioned in July last year, demonstrating that producing green ammonia from renewable power is economically viable and commercially feasible.