- China targets 100,000 fuel cell vehicles by 2030 and lower hydrogen prices.
- The central government will fund selected city clusters to subsidize the commercial application of the hydrogen supply chain.
China released a policy on Monday aimed at driving the commercial application of hydrogen across multiple industrial sectors.
The country plans to double its fuel cell vehicle fleet to 100,000 by 2030, according to an official document published today by three major government bodies, including the Ministry of Industry and Information Technology (MIIT).
The government aims to cut the average end-user price of hydrogen to below 25 yuan ($3.6) per kilogram, with prices in certain regions expected to drop to around 15 yuan.
To support this ambitious green transition, pilot programs are being launched, with the central government offering up to 1.6 billion yuan to each selected city cluster.
The pilot program will utilize a competitive mechanism to select eligible city clusters to spearhead the comprehensive commercial application of hydrogen.
Competing city clusters must possess a robust industrial base, diverse application scenarios, and a complete hydrogen supply chain encompassing production, storage, transportation, and utilization.
Currently, fuel cell vehicles represent a very niche market in China, with passenger vehicle monthly production running in the tens or hundreds of units, according to data from the China Passenger Car Association (CPCA).
Geely Auto is one of the few domestic automakers active in this sector, while the vast majority of Chinese automakers are currently focused on new energy vehicles (NEVs).
Beyond the traditional transportation sector, the Chinese government is encouraging the large-scale expansion of hydrogen applications into a broader range of diversified industrial fields.
Key focus areas outlined in the official document include the large-scale production of green ammonia and methanol, the gradual substitution of hydrogen-based chemical raw materials, and low-carbon hydrogen metallurgy processes.
Government officials anticipate that scaling up applications will drive major technological iterations and breakthroughs in core areas such as fuel cells, electrolyzers, and storage and transportation equipment.
This ambitious national strategy is designed to establish hydrogen as a new driver of economic growth and support the comprehensive green transformation of the country's economic and social development, according to the document.
($1 = 6.9018 yuan)
