Leaning into its commitment to curb vehicle emissions, the Chinese government prioritizes the expansion of hydrogen energy. It perceives fuel cell vehicles and hydrogen as pivotal players in this strategy.
The Government Work Report outlined the designation of hydrogen industry development as a key task this year, intended to elevate the nation’s industrial structure. Some deputies from the National People’s Congress have also suggested the need to accelerate this sector.
China plans to deploy 50,000 fuel cell vehicles by 2025, as indicated in its 2022 hydrogen development strategy. NPC deputy from Tianjin, Zhang Ronghua noted the strategic importance of the goal but also highlighted setbacks such as delayed financial support and disparities in technological capacities.
Observing these challenges, Ronghua proposed a broader geographical application of hydrogen vehicles, especially in heavy-duty sectors, to boost growth. Her proposition was seconded by NPC deputy from Shanxi province, Zhang Guangyong, who further emphasized Shanxi’s rich source of hydrogen.
FTXT forecasts a turning point near 2025, as the nation’s hydrogen vehicle fleet expects to reach 50,000 units. The China Hydrogen Alliance projects national hydrogen output to hit 1 trillion yuan ($139 Billion) by 2025.
Independent research and development by FTXT has allowed progress in core components, resulting in the production of 100kW and 255kW engines, 300+kW graphite plate stacks, and 70 megapascal storage tanks. As costs for fuel cell systems are predicted to decrease in the future, fossil fuel giants such as Sinopec are making a segue into the sector.
Provinces like Shandong have created favorable conditions for heavy-duty fuel cell trucks, discontinuing expressway charges starting in March. Overall vehicle costs have also seen a significant dip. Research organization BloombergNEF suggests a surge in hydrogen fuel cell vehicles as China pursues its dual carbon goals of peaking emissions by 2030 and achieving carbon neutrality by 2060.
