IEA: CCUS and hydrogen key to China’s transition

According to research from the International Energy Agency (IEA), carbon capture and utilisation and storage (CCUS) technology and hydrogen will be critical in China’s decarbonisation strategy. According to the IEA, the two technologies will have a complementary role in China’s efforts to achieve its goal of peak CO2 emissions by 2030. The research shows that China is leading the world in hydrogen production, but existing capacities are emissions-intensive: “China is the only country in the world that produces hydrogen from coal at significant scale: about two-thirds of China’s hydrogen production is fuelled by coal.” The IEA expects CCUS integration into hydrogen production to reduce emissions from an industry that is strategically valuable to China’s transition. The report concludes that “as many of China’s existing coal-based hydrogen plants were built recently, are highly emissions-intensive and could be in operation for decades to come, equipping them with CCUS could be critical to reduce their emissions”.