Green hydrogen imported from China would be cheaper in Europe today than locally produced renewable H2: Envision
Chinese green ammonia is also close in price to blue and grey NH₃, conference told
Green hydrogen imported from China in the form of ammonia would currently be cheaper for European buyers than renewable hydrogen produced within the EU — even after factoring in the cost of cracking ammonia back into hydrogen — according to Envision Energy, one of China’s leading green hydrogen developers.
Speaking at an industry conference, Frank Yu of Envision explained that the company’s large-scale projects in northern China are producing renewable hydrogen and ammonia at costs substantially below current European production levels. Envision recently received renewable ammonia certification for its Chifeng green hydrogen project from Bureau Veritas, marking a milestone for China’s emerging green fuels export industry.
According to Yu, Chinese green ammonia is now approaching cost parity with blue and grey ammonia in global markets, a trend driven by China’s low-cost renewable energy, rapidly expanding electrolyser manufacturing capacity, and improving economies of scale. These dynamics mean that imported green ammonia could undercut Europe’s domestic renewable hydrogen even before the EU’s production incentives fully mature.
Industry analysts note that while the EU aims to accelerate development of its own renewable hydrogen sector, current cost structures continue to pose challenges. High electricity prices, limited availability of low-cost renewable resources, and delayed infrastructure build-out have kept local hydrogen prices high.
The remarks from Envision underscore the growing competitiveness of China’s green hydrogen supply chain and highlight the strategic debate within Europe about the balance between domestic production and imports as the continent seeks to meet its decarbonisation targets.
