# Hydrogen: Production

Why China dominates both grey and green hydrogen

Source page: https://www.materialinsights.org/chemicals/hydrogen/production/

What this tab covers Who makes it and how much: world capacity and output, utilisation, the top producing countries and companies globally and in India, concentration, new capacity coming, and each region's position.

| Measure | Figure | Detail | Source |
|---|---|---|---|
| **World capacity** | not published as a single figure; electrolysis 2 GW installed (2024), electrolyser manufacturing about 20 GW a year in China alone |  | IEA GHR 2025 |
| **World output** | almost 100 Mt (2024) |  | IEA GHR 2025 |
| **Capacity utilisation** | not published | Captive SMRs run with their host refinery or ammonia plant. Chinese electrolyser factories run far below capacity: about 20 GW a year of capacity against about 2 GW of world demand in 2024. | IEA GHR 2025 |
| **Concentration** | China about 30% of demand (indicative); China holds 65% of installed electrolysis and nearly 60% of electrolyser manufacturing capacity | Production is spread across thousands of captive units, so company shares are low. Merchant hydrogen is concentrated in Air Products, Linde and Air Liquide. | IEA GHR 2024 (indicative); IEA GHR 2025 |
| **New capacity** | low-emissions output 4.2 Mt a year by 2030 from projects operating or at FID; 37 Mt a year announced | Over 200 low-emissions projects have reached FID since 2020. NEOM Green Hydrogen (Air Products, ACWA Power, NEOM) is about 2.2 GW of electrolysis for green ammonia (start about 2026-27, indicative). India: IOCL Panipat 10 kt a year; L&T Green 90 kt a year under SIGHT. | IEA GHR 2025; JMK Research (2025); NEOM details indicative |

#### Top producing countries
 China 30% · about 29 Mt (2023, indicative) India 6% · about 6 Mt a year (indicative)

- **United States**: not retrieved; second-largest user via refining and ammonia
- **Middle East**: not retrieved; large ammonia, methanol and refining base
- **Russia**: not retrieved; large ammonia producer (15 Mt N, USGS 2025e)
 IEA Global Hydrogen Review 2024 (indicative); IEA GHR (indicative); MNRE National Green Hydrogen Mission (2023, indicative); USGS MCS 2026

#### Largest producers: global

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Sinopec** indicative; largest single producer | China | 3.5 Mt H2 a year produced (refining and chemicals) | 2022 | [Sinopec company statements (indicative)](http://www.sinopecgroup.com/group/en/) |
| **Air Products** largest merchant supplier; partner in NEOM green hydrogen project | US | not published | 2025 | [company](https://www.airproducts.com/) |
| **Linde** hydrogen volume not disclosed | UK/US/Germany | 33.99 $ billion total sales (all gases, 2025) | 2025 | [Linde 2025 Annual Report / Form 10-K](https://www.lobbyregister.bundestag.de/media/42/b1/812501/2025-annual-report-to-shareholders.pdf) |
| **Air Liquide** volume not published | France | not published | 2025 | [company](https://www.airliquide.com/) |
| **CF Industries** captive, all converted to ammonia | US | 1.8 Mt H2 equivalent (10.1 Mt gross ammonia x 0.178) | 2025 | [CF Industries 2025 results; derived](https://www.businesswire.com/news/home/20260218721950/en/CF-Industries-Holdings-Inc.-Reports-Full-Year-2025-Net-Earnings-of-%241.46-Billion-Adjusted-EBITDA-of-%242.89-Billion) |

#### Largest producers: India

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Reliance Industries (Jamnagar)** not published | India | not published | 2025 | [company](https://www.ril.com/) |
| **Indian Oil Corporation** grey refinery hydrogen not published | India | 0.01 Mt green H2 a year contracted at Panipat (L&T Green, 25 years, Rs 397/kg) | 2025 | [JMK Research (May 2025)](https://jmkresearch.com/iocl-concludes-indias-first-green-h2-end-user-offtake-auction-at-us4-6-per-kg/) |
| **L&T Green** | India | 0.09 Mt green H2 a year awarded under SIGHT Mode I Tranche II | 2025 | [JMK Research (May 2025)](https://jmkresearch.com/iocl-concludes-indias-first-green-h2-end-user-offtake-auction-at-us4-6-per-kg/) |
| **ACME Cleantech** | India | 0.37 Mt green ammonia a year awarded in SECI tender (hydrogen embedded about 66 kt) | 2025 | [SECI presentation via ESMAP (2025)](https://www.esmap.org/sites/default/files/2022/2025/H4D%20Presentations/1-SECI-Green-Ammonia-Tender-2025.pdf) |

India uses about 6 Mt of hydrogen a year, nearly all grey, in refineries and fertiliser plants (MNRE, indicative). The National Green Hydrogen Mission targets 5 Mt a year of green hydrogen by 2030; contracted volumes so far are in the tens to hundreds of kilotonnes.

#### Position by region

| Region | Position |
|---|---|
| **US** | Large refinery and ammonia user; 45V clean hydrogen credit of up to $3/kg, with a 2025 law moving the construction deadline to end-2027 (indicative). |
| **EU** | Grey hydrogen tied to TTF gas; RED III sets a 42% renewable hydrogen target for industry by 2030; hydrogen is covered by CBAM from 2026. |
| **India** | About 6 Mt a year, mostly grey from imported LNG; first green tenders at $4.4-4.6/kg (2025). |
| **China** | About 30% of world demand, much of it coal-based; 65% of installed electrolysis (IEA 2025). |
| **Japan** | Small producer; aims to import hydrogen and ammonia for power and industry under its Hydrogen Society Promotion Act (2024). |
| **Middle East** | Cheap gas and sun; NEOM in Saudi Arabia and Oman's hydrogen auctions target export as ammonia. |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/hydrogen/index.md)
- [Overview](https://www.materialinsights.org/chemicals/hydrogen/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/hydrogen/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/hydrogen/routes/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/hydrogen/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/hydrogen/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/hydrogen/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/hydrogen/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/hydrogen/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/hydrogen/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/hydrogen/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/hydrogen/links/index.md)