China’s main source of energy is (still) coal, which provides over 60% of power generation. However, it is simultaneously the world leader in renewable energy installation. China has installed more solar and wind capacity than the rest of the world combined. In 2024, 356 gigawatts (GW) of non-hydro renewable capacity was added, with 277 GW from solar alone. China is the world’s largest oil importer, and natural gas is the fastest-growing fuel.

China is also rapidly scaling up green hydrogen to achieve carbon neutrality, targeting 100-130 million tons of annual demand by 2060. It is the world’s largest hydrogen producer and consumer. Large-scale projects are underway, including the integrated green hydrogen-ammonia-methanol project in Jilin province, which aims to produce 45,000 tons of green hydrogen annually. China houses six of the top 10 global electrolyzer manufacturers.

In December 2024, Sinopec completed construction of China’s first factory-scale research project for producing green hydrogen directly from seawater at its Qingdao Refinery in Shandong Province. This breakthrough technology bypasses the traditional need for freshwater desalination.

The Rizhao Project (Dec 2025) is a world-first facility that produces both fresh water and green hydrogen as a byproduct using low-grade waste heat.

Testing of direct seawater electrolysis has also been conducted on offshore wind turbine platforms in Fujian and Guangdong provinces.