The hydrogen energy industry has entered a fast-track of development.

On November 15, Shen Zhulin, Director of the Department of Innovation and High-Tech Development at the National Development and Reform Commission, announced at the 2022 China Hydrogen Energy Industry Conference that the next step will be to accelerate the establishment of a “1+N” policy framework, guiding regions with suitable conditions to integrate industrial foundations with market potential, leverage regional advantages, and promote the rational deployment of hydrogen energy. At the same time, a batch of demonstration projects will be organized and implemented to continuously expand the diversified application scenarios for hydrogen energy.

Industry insiders have noted that recently, many regions have introduced policies offering “real financial support” to boost the development of the hydrogen energy industry. Driven by supportive policies, increased corporate investment, and the growing synergy between supply and demand, the future prospects for the hydrogen energy market look promising.

In March of this year, the "Mid- to Long-Term Development Plan for the Hydrogen Energy Industry (2021-2035)," jointly issued by the National Development and Reform Commission and the National Energy Administration, stated that hydrogen energy will be an important component of the nation's future energy system. Following this announcement, numerous related companies have stepped up their efforts to expand their presence in the hydrogen energy sector.

According to statistics from certain institutions, since the beginning of this year, central state-owned enterprises including Sinopec, CNPC, CNOOC, State Power Investment Corporation, State Grid, China Three Gorges Corporation, China Energy Engineering Corporation, and China National Electric Engineering Corporation have announced their plans for developing the hydrogen energy industry. Moreover, as many as 18 hydrogen production projects have already been launched domestically in the first half of the year.

Xiang Haiping, Chief Engineer of the National Energy Administration, stated that China’s hydrogen energy industry is still in its early stages of development. It is essential to comprehensively enhance basic research, cutting-edge technologies, and original innovation capabilities across the entire hydrogen energy value chain. We must accelerate breakthroughs in key materials and core technological equipment, place great importance on industrialization and demonstration applications, encourage diversified business model innovations, gradually reduce hydrogen usage costs, improve relevant technical standards, as well as inspection, certification, and regulatory systems, and build a healthy ecosystem for innovative development of the hydrogen energy industry.

In terms of strengthening innovation and expanding diversified applications, we must concentrate our efforts on breakthroughs in core technologies, promote industrial applications and iterative upgrades, refine our technological systems, and ensure the security and stability of industrial and supply chains. We should give full play to the leading role of enterprises in innovation, foster innovation platforms such as construction engineering research centers, enhance the integration of industry, academia, research, and application, and boost our capacity for innovative development. At the same time, we need to drive deep decarbonization and emission reductions in key sectors, expand the supply of clean, low-carbon hydrogen production, accelerate the development of renewable-energy-based hydrogen production, explore integrated models for wind-solar-hydrogen-storage systems, advance the construction of infrastructure for hydrogen storage, transportation, and refueling, and speed up the establishment of an efficient supply system for clean, low-carbon hydrogen. We should also organize and implement a batch of demonstration projects, promote the application of hydrogen fuel cells in medium- and heavy-duty vehicles and heavy machinery, foster the integrated innovation of hydrogen energy with renewable-energy-based power generation and energy storage, and continuously expand the diversified application scenarios for hydrogen energy. Against the backdrop of enhanced policy support and increased corporate investment, the future prospects for the hydrogen energy market are promising.