China's hydrogen energy industry is taking shape, becoming the world's largest hydrogen-producing country.

　　Faced with pressures such as energy security and environmental protection, developing hydrogen energy has become a consensus for the energy transition. Since China included hydrogen energy in the Government Work Report, the hydrogen industry has increasingly become a focal point of attention for both capital markets and the industrial economy. Although China’s hydrogen industry has already begun to take shape, it still needs to catch up in areas like top-level design, core technologies, and industrial support systems—

　　Recently, hydrogen energy has emerged as a new highlight in industrial development across various regions, with many localities rolling out ambitious hydrogen industry plans that are accelerating the sector's growth. For instance, Shanghai aims to have 50 hydrogen refueling stations and at least 20,000 hydrogen-powered passenger vehicles by 2025, along with no fewer than 10,000 other hydrogen-fueled vehicles. Meanwhile, Foshan plans to put 10 hydrogen stations into operation this year, striving to achieve a demonstration fleet of 1,000 hydrogen-powered buses. Wuhan, meanwhile, intends to build between 5 and 20 hydrogen refueling stations by 2020, with fuel cell vehicles expected to reach a pilot operational scale of 2,000 to 3,000 units…

　　The industrial chain has been fully established.

　　Developing hydrogen energy is a crucial pathway for China's energy transition, and local regions are already laying the groundwork for this shift by strategically positioning themselves in related industries.

　　Industry experts told the Economic Daily reporter that hydrogen energy refers to the energy released during reactions dominated by hydrogen and its isotopes, or during hydrogen's phase transitions. It boasts characteristics such as abundant sources, storability, versatile applications, zero carbon emissions, zero pollution, and high energy density. Hydrogen can be used to generate electricity, provide heat, and even serve as a fuel for transportation. Moreover, hydrogen acts as a stable medium—by producing hydrogen via renewable energy sources, it can help stabilize inherently intermittent renewable energy systems.

　　Ma Zongqiang, Vice Chairman of the International Hydrogen Energy Association, stated that hydrogen has an energy density three times higher than gasoline and 130 times greater than lithium batteries, making hydrogen fuel increasingly important as a replacement option. Statistics show that global annual hydrogen production currently stands at around 63 million tons, with China producing approximately 22 million tons each year—accounting for one-third of the world's total hydrogen output, thus cementing its position as the world's largest hydrogen-producing nation.

　　In the fields of hydrogen energy and fuel cells, China has initially established a comprehensive framework spanning from basic research and applied studies to demonstration projects, with a fully integrated hydrogen energy industrial chain now in place. This chain covers four key segments: hydrogen production, storage and transportation, refueling, and application. Taking hydrogen production as an example, current methods primarily include coal gasification, natural gas reforming, methanol reforming, and water electrolysis. Looking ahead, "renewable energy + water electrolysis for hydrogen production" is set to become the dominant trend in large-scale hydrogen manufacturing.

　　Meanwhile, China's production of fuel cell vehicles has been increasing year by year. According to data provided by the International Hydrogen Association, in 2017, China had 8 brands and 10 models of fuel cell cars in production, with a total output of 1,272 units—representing a 102.2% year-on-year growth compared to 2016. In 2018, China's fuel cell vehicle production reached 1,619 units, including 909 dedicated fuel cell vehicles and 710 large passenger buses.

　　The development positioning still remains to be clarified.

　　Although hydrogen is a secondary energy source, it boasts significant advantages such as zero carbon emissions, high efficiency, its role as an energy interconnection medium, ability to store energy, and safe, controllable characteristics. As a result, it can be widely adopted across various sectors—including transportation, chemical feedstocks, industry, and building—while current hydrogen production pathways already indicate that China will have ample hydrogen resources to support its use as an energy source in the future. If hydrogen energy is integrated into China’s end-use energy system and synergistically complements electricity, the two will jointly become the backbone of the country’s final energy consumption framework, playing a pivotal role in China’s ongoing energy transition.

　　Notably, the application of fuel cells in transportation has become a powerful driving force for hydrogen energy development. Currently, fuel cell vehicles have emerged as a key strategic industry in many countries. China can leverage its existing resource advantages to strategically position itself in the hydrogen and fuel cell industries, while also increasing investment in critical technologies and addressing weak links within the industrial chain—thus seizing the initiative in this rapidly evolving field.

　　“Although China is the world’s largest hydrogen producer, boasting abundant resource foundations, the country still hasn’t established a clear national positioning for hydrogen energy. Instead, hydrogen remains merely a component of the emerging new-energy vehicle industry, lacking comprehensive top-level design and strategic planning,” said Yu Zhuoping, Director of the Expert Committee of the China Hydrogen Energy Alliance and Assistant President of Tongji University. He added that countries such as Japan, Europe, South Korea, and Australia have already released their own hydrogen energy roadmaps.

　　He Guangli, Assistant Director of the New Energy Center at the Beijing Low-Carbon Clean Energy Research Institute, also pointed out that top-level design is crucial. Although nearly 20 provinces and cities have already released relevant plans, a nationwide hydrogen energy development strategy and roadmap have yet to be unveiled—something that could potentially impact the progress of China's hydrogen industry.

　　"Currently, the biggest challenge in the development of fuel cell vehicles is the bottleneck in infrastructure construction. For instance, both the standards and regulations for building hydrogen refueling stations—and even the underlying policy frameworks—are still incomplete, and there’s also no clear department responsible for overseeing this area," said He Guangli. As of now, cities like Shanghai, Foshan, Wuhan, and Rugao have already designated specific authorities and established streamlined approval processes for hydrogen station construction. However, at the national level, no explicit guidelines have yet been put in place. This lack of uniformity makes it particularly difficult to approve hydrogen station projects. Therefore, promptly identifying the appropriate government body to oversee hydrogen energy has become a shared call within the industry.

　　Accelerate tackling key challenges and improving supporting systems

　　Facing the burgeoning fuel cell industry, establishing a well-developed and comprehensive supply chain for key components is crucial. Currently, in China, sample testing of foundational research on electrocatalysts used in fuel cells, carbon paper for diffusion layers, and proton exchange membranes—among other critical materials—has already reached international standards. However, without the establishment of dedicated production lines, it remains impossible to deliver products in bulk. Meanwhile, key materials for fuel cell stacks intended for vehicle integration still rely heavily on imports.

　　"China's academician of the Chinese Academy of Engineering, Yi Baolian, stated, 'We should promptly improve the industrial chain and achieve independent production of key materials. This is not only essential for reducing fuel cell stack costs but also crucial to meeting the demands of large-scale commercialization of fuel cell vehicles.'"

　　Pan Mu, an expert from the China Hydrogen Energy Alliance and a professor at Wuhan University of Technology, believes that fuel cells still have ample room for performance improvement and innovation. For instance, the development of new nanocatalysts needs to be accelerated, while continuous advancements are required in enhancing membrane electrode performance and fostering innovations in fuel cell stacks. "Innovation in fuel cells is crucial—China has limited early-stage accumulation, making it challenging to catch up. We must strive to drive the development of fuel cells forward through sustained innovation."

　　If our country fails to establish mass production lines for key fuel cell materials and components within a few years, we will have no choice but to rely entirely on imports. At some point, this dependency will inevitably lead to critical bottlenecks that could hinder further development.

　　Currently, China relies on imports for the 70 MPa hydrogen cylinders used in fuel cell systems, while air compressors and hydrogen circulation pumps are still in the research, development, and pilot-production stages. Therefore, it is essential to increase R&D investment to accelerate mass production as soon as possible, significantly reducing the overall cost of fuel cell systems. To facilitate the large-scale production of critical materials and components, we should also expedite the establishment of relevant standards.

　　In fact, in addition to its prominent advantages in the field of hydrogen fuel cell vehicles, fuel cells also hold significant growth potential in industries such as energy storage and power generation. Mao Zongqiang predicts that by 2030, China will become the world's largest market for hydrogen energy and fuel cells; by 2040, hydrogen energy could potentially meet 10% of China's total energy demand.