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China sees promising hydrogen market amid double carbon policy

6:26pm 24 Oct, 2022 Lily Yin

Beijing (JLC), October 24, 2022--China’s hydrogen energy industry is developing rapidly thanks to the implementation of carbon peaking and carbon neutrality goals, with the transportation field partly formed by fuel cell vehicles playing an important role.

 

China is now speeding up the construction of the five big fuel cell vehicle demonstration city clusters in Beijing, Shanghai, Guangdong, Henan and Hebei. The core technology has been broken through continuously, and the hydrogen energy industry chain is being improved gradually. Under the favorable environment, China’s fuel cell vehicles were delivered and put into operation intensively.

 

Eighty units of hydrogen energy vehicles has been put into operation in Shanghai recently, the first batch of fuel cell vehicles that provide online car-hailing services in China. These vehicles are fueled at Sinopec Shanghai Petroleum Qingwei oil and hydrogen refueling station every day and then run around Shanghai Hongqiao airport. The number of such vehicles is expected to expand to 200 units by the year-end.

 

In the city clusters of Beijing, Tianjin and Hebei, over 1,000 units of fuel cell vehicles have been promoted so far, with nearly 600 units in Daxing district, covering travellers’ vehicles, road sweepers, heavy trucks and so on, said by Ren Juanjuan, deputy director of Bureau of economy and information technology of Daxing district.

 

In August 2021-August 2022, that is the first year since China started the fuel cell vehicle demonstration city clusters, the total sales of registered fuel cell vehicles in the five fuel cell vehicle demonstration city clusters reached 2,590 units, according to fuel cell vehicle data base released by GGII.

 

In September 2022, China’s fuel cell vehicle production and sales hit 183 units and 202 units, respectively, a year-on-year increase of 18.1% and 16.8%. The production and sales of fuel cell vehicles both reached 2,000 units in the first nine months of 2022, surging by 170% and 130%, respectively, data from China Association of Automobile Manufacturers (CAAM) showed.

 

In addition, many local governments of China have released plans to support the development of hydrogen energy industry, especially infrastructure construction.

 

For example, Shanghai plans to construct and put into operation more than 70 hydrogenation stations by 2025. Guangdong plans to build 300 hydrogenation stations in the whole province during the 14th five-year plan period, with more than 200 hydrogenation stations in the demonstration city clusters in the province.

 

By end-June, China had constructed more than 270 hydrogenation stations, ranking first in the world and accounting for 40% of the world’s total, the National Energy Administration data showed.