The hydrogen energy boom is here, and policy measures are being introduced to drive its development.

Hydrogen energy is a green, low-carbon, and widely applicable secondary energy source that can serve as a medium for the mutual conversion of various different forms of energy. It is gradually becoming one of the key drivers of the global energy transition. Hydrogen is widely distributed throughout the universe, and water—a byproduct of its combustion—is recognized as a clean energy source and is hailed as the most promising secondary energy source for the 21st century.

In 2020, the “dual-carbon” goals brought new energy sources into the spotlight, and industries such as wind and solar power generation and new energy storage technologies have also attracted considerable attention—hydrogen energy is no exception.

In March 2022, the National Development and Reform Commission and the National Energy Administration jointly issued the “Mid- to Long-Term Plan for the Development of the Hydrogen Energy Industry (2021–2035),” which clearly defined three strategic positions for hydrogen energy: hydrogen energy is an important component of the nation’s future energy system; hydrogen energy is a key enabler for achieving a green and low-carbon transformation at the end-use energy consumption stage; and the hydrogen energy industry is a strategic emerging industry and a key area for the development of future industries.

At the same time that the policy was released, in addition to several central state-owned enterprises and listed companies—including State Power Investment Corporation, China Energy Group, China Shipbuilding (600150.SH), and Beijing Energy Power (600578.SH)—which have accelerated their deployment in the hydrogen energy industry, asset management firms and investors have also taken notice of this promising sector and are preparing to make substantial investments in multiple hydrogen energy projects.

On October 9, the National Energy Administration released the "Action Plan for Enhancing Standardization of Energy Carbon Peak and Carbon Neutrality," which proposes further promoting standardized management of the hydrogen energy industry and accelerating the refinement of top-level design and the establishment of a comprehensive hydrogen energy standards system. The plan calls for developing technical standards covering hydrogen production, hydrogen storage, hydrogen transportation, hydrogen refueling, and diversified applications of hydrogen energy, thereby supporting the development of the entire hydrogen energy value chain—from production and storage to transportation and utilization.

In mid-October, China National Electric Investment Group Hydrogen Energy Technology Development Co., Ltd. launched a fundraising campaign, aiming to raise no less than 1.625 billion yuan and seeking to attract no fewer than three investors. The funds raised will be primarily used for R&D of key components for fuel cells and PEM hydrogen production equipment, expansion of production lines, construction of new bases, procurement of raw materials, and replenishment of working capital.