Disclosures & Disclaimer: This report must be read with the disclosures and the analyst certifications inthe Disclosure appendix, and with the Disclaimer, which forms part of it.By: Dun Wang (S1700519060002), Corey Chan (S1700518100001), Yi Ru (S1700520120001)China Green HydrogenReady for prime time Green hydrogen is taking off in China, which is set to lead the world in its adoption, driven by tighter emission standards and falling costsWe show why chemical and steel producers are set to be the biggest commercial users of this clean fuel over the next five years……and highlight other major implications such as a brighter outlook for renewable power and re-rating opportunities along the supply chainS P O T L I G H TEnergy TransitionEquity Research Reportwww.research.hsbc.comMarch 2022ChinaThematic research 1 Energy Transition ● Equities March 2022 Prime time for green hydrogen Green hydrogen is on the cusp of becoming far more widely adopted in China as the costs come tumbling down. It’s an energy source that is crucial to achieving net zero emissions – it is produced using renewable energy and produces no carbon emissions when consumed – but up to now has been prohibitively expensive. That is changing as since 2021, China’s oil majors and leading chemical companies have started using this fuel source to power their plants, leading to cost reductions for this emerging energy source. In this report, we look at applications which are most commercially viable in the next five years, namely green hydrogen being used by chemical and steel producers as they can make it on site, so there is no need for transportation. But we also look at the wider development of green hydrogen in China and deta...
