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China plans trading platform for green hydrogen-derived fuels to decarbonise shipping

  • Hydrogen, methanol and ammonia are ‘inevitable choices’ for green shipping, says official of the Shanghai Environment and Energy Exchange

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The Haigang Zhiyuan, foreground, provides methanol fuel to the Astrid Maersk (background), a methanol-powered container vessel belonging to A.P. Moller-Maersk, at the port of Shanghai on April 10, 2024. Photo: LinkedIn/ Quin Xu
Yujie Xue

China will set up a platform to support the trading of net-zero hydrogen and its derivatives in a bid to catalyse the country’s ambition to lead the global hydrogen sector and decarbonise the heavy-emitting shipping industry.

The platform will focus on the certification and trading of green hydrogen, green methanol and green ammonia in China, and eventually aims to expand its service globally.

The Shanghai Environment and Energy Exchange (SEEE), Shanghai International Port Group, China Energy Investment Group, and Shanghai Lingang Economic Development Group signed an agreement at a shipping industry conference in Shanghai on Monday to jointly establish the platform.

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Green methanol and green ammonia are both derived from so-called green hydrogen, a zero-emission fuel produced by splitting water using renewable energy through a process called electrolysis.
These hydrogen-based fuels are “inevitable choices” during the green transition of the shipping industry, Liu Jie, general manager of SEEE, told local media outlet Yicai, adding that the signees are committed to building the platform into an international centre for the subscription, pricing, and trading of green-hydrogen-based energy products.
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China, the world’s largest greenhouse-gas emitter, has been betting on green hydrogen and its derivatives in recent years to become the country’s “fourth pillar” of economic growth after solar energy, electric vehicles and batteries. It aims to lead a global race to dominate the booming hydrogen ecosystem.

The country has set ambitious targets for the production of green hydrogen in its national hydrogen strategy in 2022 up to 2035. The central and local governments have also been actively deploying infrastructure to support the transport and storage of hydrogen fuels in an effort to facilitate the consumption of the clean fuel in areas including transport, power generation, decarbonisation of heavy industries and energy storage.

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