China ranks 3rd amongst leading blue hydrogen market

It is behind the United States and Canada.

China is the leading market in the Asia Pacific region, ranking third in the Blue Hydrogen Sustainability Index with a score of 80.17, according to Fitch Solutions.

In a report, Fitch said China is behind the leading markets US and Canada with an index of 90.22 and 80.79, respectively.

“The latest Fitch Solutions Blue Hydrogen Index remains largely unchanged, with the US and Canada holding the top spots, but the overall growth in projects has stalled since our last report as concerns mount over blue hydrogen’s competitiveness in cost of production,” it said.

Blue hydrogen is produced using natural gas backed with carbon capture projects to store the emissions.

READ MORE: Reducing green hydrogen production costs hangs on gov’t support

Fitch said that well-developed natural gas industries continue to support blue hydrogen adoption, and the market leaders also have the advantage of supportive policies and investment in renewables.

The index is based on the following criteria: blue risks, renewable country risks, project risk index, hydrogen industry rewards, and blue rewards.

Other countries from the Asia Pacific that were in the top 20 markets were Australia, Malaysia, Kazakhstan, India, Indonesia, Japan, and Vietnam. Markets in the Middle East were the United Arab Emirates, Qatar, Saudi Arabia, Iran, and Kuwait.