China's nascent hydrogen energy industry is growing as local governments and companies race to seize emerging opportunities in the sector’s catalytic role in empowering the country’s green shift. Several local governments have recently introduced supportive policies to speed up the hydrogen energy industrial layout, promoting fuel-cell vehicles, construction of hydrogen refueling stations and development of industrial chains. Beijing unveiled an initial plan in early August, offering subsidies of up to CNY30 million per project in fields like advanced hydrogen production, storage and transportation as well as hydrogen refueling facilities. Last month, Shandong province said it is looking to build a hydrogen energy industry of over CNY100 billion, roll out at least 10,000 fuel-cell vehicles and build 100 hydrogen refueling stations by 2025.
China has huge growth potential in utilizing hydrogen energy, especially in empowering green vehicles by making fuel cells. Hydrogen can only be generated by consuming primary energy such as coal, natural gas and renewable energy. China has an annual hydrogen production output of about 33 million metric tons, but most of the hydrogen comes from fossil fuels. By 2025, the country is expected to have about 50,000 fuel-cell vehicles, and its annual hydrogen production from renewable energy will reach 100,000 to 200,000 tons, according to a plan jointly released by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) in March. China had over 270 hydrogen refueling stations by the end of June, a relatively small network compared with the country’s extensive number of charging facilities for electric vehicles.
The country has over 300 hydrogen energy-related companies with annual operating revenue of at least CNY20 million. Shell announced in July that its China branch has teamed up with a Chinese counterpart to form a joint venture in Shanghai to build a network of hydrogen refueling stations, Shell’s first network in Asia. The JV plans to build six to 10 hydrogen refueling stations in Shanghai and the Yangtze River Delta over the next five years and scale up to 30 stations across the delta by 2030. These 30 stations are expected to provide hydrogen to about 3,000 fuel-cell trucks or buses every day. “We see opportunities across the hydrogen value chain in China,” Jason Wong, Executive Chairman of Shell Companies in China said, as reported by the China Daily.
