China unveils ambitious plans for hydrogen China unveils ambitious plans for hydrogen China unveils ambitious plans for hydrogen

China unveils ambitious plans for hydrogen

Equities 5 minutes to read
Peter Garnry

Head of Equity Strategy

Summary:  China has unveiled plans to triple global output of hydrogen by 2025 in order to rapidly decarbonize its economy and achieve its climate goals. Hydrogen is seen as a key driver in the future of heavy transportation and decarbonizing steel and cement production. We go through the impact and highlight which companies are exposed to the hydrogen theme.

Hydrogen: one path to decarbonize the economy

China is well aware of the environmental impact of coal and other fossil fuels used in its industry and in order to create a greener future the country must decarbonize using many different technologies including hydrogen. China has announced today that it will massively expand hydrogen production to the extent that it will triple global output by 2025. Hydrogen has been declared as a key driver in the future of heavy transportation (aviation, trucking and shipping) but also the way to decarbonize steel and cement production.

Hydrogen is also seen as a key industry in Europe in order to achieve climate goals through the Power-to-X (PtX) concept which is essentially using excess renewable energy production to produce hydrogen which can then be seen as an energy storage until it is used in either transportation or power plants for electricity production; Siemens Energy has ambitious plans to build hydrogen power plants in the future to facilitate the PtX concept.

China’s decision but also the EU’s rapid move to become independent of Russian oil and gas will likely have a positive impact on growth rates within the hydrogen industry. The list below shows some of the companies that are exposed to the hydrogen industry either in the production (electrolyze equipment) or consumption (fuel cells):

  • Bloom Energy
  • Plug Power
  • Ballard Power Systems
  • FuelCell Energy
  • NEL
  • McPhy Energy
  • PowerCell Sweden
  • Doosan Fuel Cell
  • ITM Power
  • AFC Energy

For those that wants a broad exposure to the hydrogen theme the L&G Hydrogen Economy UCITS ETF is an option (see chart below with ETF’s price development over the past five years).

Source: Saxo Group

Our Green Transformation theme basket has recently staged a comeback up 1.9% this month due to the EU’s ambitious plans on green energy in order to become independent of Russia’s oil and gas. The green transformation is so transformational for our society going forward and consists are large sub-categories that we are currently evaluating on splitting the theme basket into production and consumption of green energy which would give more room to for example hydrogen in terms of both production (electrolyze equipment) and consumption (fuel cells).


The Saxo Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.