Yunfu, a Guangdong city known for its masonry and quarries, is quietly carving out a role in the global supply of hydrogen fuel-cell vehicles, a novel propulsion method important to cutting greenhouse gases.
Workers at Sinosynergy installed storage bottles and hydrogen fuel stacks on a vehicle before its delivery to Ningxia region in northeastern China.
The bus had front and rear doors, 20 seats, and standing room. The bus is powered by burning hydrogen, which produces just water vapour and no carbon dioxide or other greenhouse gases.
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Buses destined for Ningxia, one of China’s poorest provinces, belie Sinosynergy’s aim to promote hydrogen fuel cells. The business, which turns 7 on June 30, makes 70% of China’s fuel-cell stacks.
Mini buses, trucks, trams, passenger cars, ships, aircraft, rockets, and 5G base stations can all be powered by hydrogen fuel cells in the future, according to a display at Sinosynergy’s Yunfu headquarters. One in two fuel-cell vehicles in China use the company’s stacks, giving it a 10% global market share.
Sinosynergy’s international president Cynthia Zhu stated the hydrogen sector is in the early stages of commercialization and industrialization. “Like the lithium-ion battery business, the hydrogen industry needs an efficient regulatory structure, policy backing, and technological advancement.”
UN’s Intergovernmental Panel on Climate Change says global greenhouse gas emissions must peak by 2025 to limit warming to 1.5 degrees Celsius this century (IPCC). By 2030, net neutrality must be achieved.
As the clock to save Earth from climate change tightens, the world races for innovative energy solutions to restructure life and economy and limit greenhouse gas emissions.
The EU and 33 regions, including China and Hong Kong, have established net-zero emissions targets. China’s aim is 2060.
Hydrogen helps. Hydrogen, the simplest molecule and most plentiful element in the universe, is considered the ultimate non-polluting fuel and energy-storage medium.
Hydrogen electricity doesn’t fluctuate like solar and wind. Hydrogen fuel cells offer a higher energy density than lithium-ion batteries, allowing vehicles to go further before refilling.
Governments around the world have big ambitions to build the hydrogen economy. China’s first long-term hydrogen plan for 2021-2035 was unveiled in March. By 2025, China should have 50,000 fuel-cell electric vehicles, six times more than in 2020.
According to the McKinsey Center for Future Mobility, the global market for commercial hydrogen fuel-cell vehicles may reach $20 billion by 2030, growing at a compound annual growth rate of 34%. Clean energy policies, rapidly falling hydrogen technology and product costs, and strategic planning will help drive this growth.
Sinosynergy claims to be one of the world’s largest hydrogen fuel-cell manufacturers. It was the first Chinese company to ship Europe-standard hydrogen-powered vehicles to Malaysia in 2019 – three fuel cell buses.
Since its 2015 founding, the company has received significant public assistance and subsidies. Foshan and Yunfu assisted Sinosynergy establish the local hydrogen sector, including industrial parks and hydrogen bus routes.
Sinosynergy partnered with Ballard Power Systems to produce fuel-cell stacks in China. Sinosynergy expanded and created its own technology. With governmental assistance, more companies and capital flocked to the two pioneer cities to build a hydrogen production, storage, refueling, and application ecosystem.
Guangdong’s hydrogen industry drew the most attention from the Communist Party leadership, which wants to claim a stake in the future. Vice-Premier Hu Chunhua visited Sinosynergy and Yunfu’s hydrogen industrial estate three times between 2015 and 2017.
At least 23 of 31 provincial-level regions have released development plans for hydrogen energy and fuel-cell vehicles since 2019.
Shanghai, Beijing, and Guangdong applied for central government infrastructure funds to develop hydrogen industrial clusters.
Sinosynergy’s product portfolio now includes stacks, modules, integrated systems, and equipment for diverse end-applications.
Sinosynergy helped JD.com supply fuel-cell lorries for its statewide logistics network and launched Shanghai’s hydrogen-powered tram in 2021. In February, it introduced fuel-cell forklifts in Shanghai with Hamburg-based Jungheinrich.
Sinosynergy is working with China Tower and China’s three major telcos to create 5G standby power supply solutions. Sinosynergy signed agreements with Guangdong shipyards to develop hydrogen marine power.
Hydrogen fuel-cell buses are quieter and don’t smell like petrol like ICE vehicles, a driver near Sinosynergy’s headquarters stated.
A fuel-cell bus can travel 450km (280 miles) on a single charge, according to its driver, Zhi.
Sinosynergy says hydrogen fuel-cell vehicles get 500 to 600km on a full tank, treble the range of battery-powered vehicles. Fuel cells can work 30 degrees Celsius below freezing, making them handy in northern China’s winters. Ningxia, where January temperatures can dip below -15 C, is excellent for fuel cell research.
Hydrogen’s high cost hinders fuel-cell vehicle expansion. According to Sinosynergy, Yunfu’s hydrogen is stored and transferred as compressed gas.
Long distances from manufacturing facilities to refueling stations, high storage tank pressure, and Covid-19 consequences have increased hydrogen costs in Foshan to 70 to 80 yuan per kilogram. In May, gasoline cost 12.80 yuan a gallon.
Ankit Sachan, Asia hydrogen analyst at S&P Global Platts Analytics, cites high “green hydrogen” production costs compared to cheaper hydrogen from coal gasification.
China wants to manufacture 100,000 to 200,000 tonnes of “green hydrogen” yearly by 2025, compared to the currently prevalent “grey hydrogen” and cleaner “blue hydrogen” made using coal and natural gas as a by-product of industrial activity.
According to S&P Global Platts Analytics, China will create 300,000 tonnes of green hydrogen next year.
“With government and industry assistance, we’re convinced hydrogen will be competitive with diesel and gasoline,” Sinosynergy stated.
China’s hydrogen development also requires vital component breakthroughs. Alfred Wong, Ballard’s Asia-Pacific managing director, said that despite recent domestic improvements, China still imports basic ingredients, catalysts, PEM, carbon paper, and high strength carbon fiber. “International cooperation will assist localize critical components.”
Current and near-term hydrogen development requires government funding. S&P Global Platts Analytics reports that China has 7,700 fuel-cell vehicles, mostly municipal and heavy-duty vehicles.
