Opportunities and Challenges for China–Japan Cooperation Regarding Renewable Hydrogen: A 3E Perspective

China is the world’s largest producer of hydrogen, and it has the potential to export renewable hydrogen and its derivatives. Japan has set ambitious targets for developing a hydrogen-based society but is facing cost challenges. There is strong potential for China and Japan to cooperate regarding renewable hydrogen across the value chain. This study evaluates the cooperation opportunities from the 3E perspective (energy security, economics, and the environment). It estimates the renewable hydrogen production potential in both countries, as well as the economics and greenhouse gas (GHG) emissions associated with the production and export of renewable hydrogen from China to Japan using proton exchange membrane (PEM) technology. The renewable hydrogen production potential in China is estimated to be 12.00 Mt/year by 2035 in the base case of this study, providing a strong foundation for exports to Japan. The levelized cost of hydrogen (LCOH) using PEM technology and onshore wind is estimated at 4.27 USD/kg H2 in China and 11.01 USD/kg H2 in Japan for projects built in 2025. Even after accounting for liquefaction costs in China, transport costs from China to Japan (Chifeng—Dalian—Kobe) and regasification costs in Japan, renewable hydrogen produced in China remains more cost-effective than that produced in Japan. In terms of GHG emissions, when renewable hydrogen is produced using wind power, and wind power is also used for liquefaction and other electricity-consuming processes, the total emissions within the case study boundary amount to 2.24 kg CO2-eq/kg H2, below Japan’s low-carbon hydrogen threshold of 3.4 CO2-eq/kg H2. This study also discusses the challenges which are critical to facilitating cooperation, particularly in regards to coordinating standards and certification systems between the two countries.