Hydrogen economy in China: Integrating biomass for renewable ernergy transition and economic growth

Abstract

China faces mounting pressure to transition from a fossil fuel-dependent economy to a low-carbon, sustainable energy system while maintaining robust economic growth. This study explores the integration of alkaline water electrolysis and biomass gasification as a dual-pathway strategy to advance China's hydrogen economy. The primary objective is to assess the technical feasibility, economic potential, and environmental impact of combining these two hydrogen production methods. Empirical analysis reveals that (1) China could utilize over 700 million tons of annual agricultural and organic waste for biomass gasification, producing up to 25 million tons of hydrogen per year; (2) integrating alkaline water electrolysis powered by renewable energy could further supply 20 million tons of green hydrogen annually; (3) the combined approach can reduce carbon emissions by over 200 million tons CO₂-equivalent each year; (4) lifecycle cost assessments show that hydrogen from biomass and electrolysis can become cost-competitive with grey hydrogen by 2035 under supportive policies; and (5) regional pilot projects in provinces like Sichuan and Inner Mongolia demonstrate the scalability of this integrated model. These findings suggest that a biomass-electrolysis hybrid approach could significantly enhance China’s energy security, support rural economic development, and accelerate its pathway toward carbon neutrality by 2060. Targeted policy interventions are urgently required to support R&D, scale infrastructure, and implement green hydrogen certification frameworks to realize this vision..