China has launched a pilot program to accelerate the development and large-scale application of green hydrogen energy, aiming to drive technological innovation and establish hydrogen power as a new growth driver for the economy.

According to a circular issued last week by three government departments, including the Ministry of Industry and Information Technology, the country aims to have 100,000 fuel cell vehicles on the road by 2030, double the 2025 level.

It has also set a goal of cutting end-user hydrogen prices to below 25 yuan ($3.63) per kilogram by 2030 and around 15 yuan in some regions.

To support the green transition, pilot programs are being launched, with the central government offering up to 1.6 billion yuan to each selected city cluster.

Earlier in 2021, five city clusters — Beijing-Tianjin-Hebei region, Shanghai, Guangdong province, Zhengzhou in Henan province, and Hebei province — were designated as hydrogen application pilot areas for an initial four-year demonstration period.

The hydrogen vehicle market shifted rapidly from the confident and aggressive expansion seen in 2021-22 to a contraction in the second half of 2023, marked by layoffs, financial losses and a quiet withdrawal from the market. The city clusters sold 39,023 hydrogen vehicles during the period, falling short of the 50,000-unit target.

By the end of 2025, nearly 40,000 hydrogen fuel cell vehicles had been sold nationwide, and 574 hydrogen refueling stations with a combined daily refueling capacity of over 360 metric tons had been built, positioning China among global leaders in the sector.

Zheng Qiaoyun, a senior researcher at the China Society of Automotive Engineers, pointed out that insufficient refueling infrastructure and the high cost of hydrogen remain barriers to the wider adoption of hydrogen fuel cell vehicles.

According to Zheng, in pilot cities such as those in the Beijing-Tianjin-Hebei region, Shanghai and Guangdong, hydrogen prices currently range from 35 to 76 yuan per kg. And nationwide, the limited number of hydrogen refueling stations can only support the daily refueling needs of around 4,000 to 5,000 heavy trucks.

For hydrogen to become economically competitive with diesel and natural gas, its cost must fall below 25 yuan per kg, said Guo Ping, deputy director of the development institute at FAW Jiefang Group.

He predicted that by 2030, the cost of hydrogen could fall to a competitive level.

Guo noted that hydrogen fuel cells have advantages over power batteries in long-distance transport and cold-climate scenarios. FAW Jiefang has developed reserves of hydrogen internal combustion engines and hydrogen fuel cells.

Ouyang Minggao, an academician of the Chinese Academy of Sciences, also believed that pure electric vehicles have an advantage in the heavy truck sector for ranges within 500 km. However, for ranges exceeding 1,000 km, hydrogen-powered heavy trucks will be more suitable.

Ouyang said that the future of new energy transport will focus on two main directions: electricity and hydrogen, similar to how gasoline and diesel currently dominate as transportation fuels. He predicted that hydrogen fuel cells are expected to account for around 10 percent of the total energy use in the sector, while battery power will make up about 80 percent.

Global automakers are continuing to advance hydrogen fuel cell technology, accelerating its transition from laboratory research to large-scale commercial application.

Hyundai has expanded its fuel cell vehicle lineup with models including the ix35 Fuel Cell, the Nexo SUV, the Elec City bus and the Xcient Fuel Cell heavy truck. Meanwhile, Toyota launched the hydrogen-powered vehicle Mirai, which has a range of up to 850 km and can be refueled in three minutes.

In China, Changan Automobile launched the country's first mass-produced hydrogen fuel cell sedan, the Deepal SL03 Hydrogen Fuel Cell version, which has a range of 730 km and can add 300 km of range with 15 minutes of refueling. Geely has also rolled out the Farizon Homtruck series, featuring methanol-hydrogen hybrid electric super vans and heavy trucks.

caoyingying@chinadaily.com.cn