In July, a bus was refueled at a hydrogen station in Beijing's Daxing District. [TIAN YUHAO/CHINA NEWS]
Fuel cell vehicles are expected to gain momentum as the development of the hydrogen energy sector is listed as one of the Chinese government's main priorities this year.
According to this year's government work report, strengthening the development of “cutting-edge fields” including the hydrogen industry is one of the country's basic industrial tasks this year.
Some members of the National People's Congress have also put forward proposals for the development of this field, which is considered the ultimate solution to vehicle emissions.
According to the hydrogen development plan announced in 2022, China has set a goal of having 50,000 fuel cell vehicles on the road by 2025.
Zhang Ronghua, a NPC delegate from Tianjin, said the goal is strategically important, but there are obstacles on several fronts.
He called for faster financial support from authorities, adding that it currently takes about two to three years for businesses to receive subsidies. This period has caused financial problems for small and medium-sized enterprises.
Zhang Ronghua also proposed expanding the use of hydrogen vehicles, especially large vehicles, in a wider geographical area to accelerate the growth of the sector as a whole.
Zhang Guangyong, a member of the National People's Congress in Shanxi province, echoed his remarks and suggested that Shanxi should be added to the list of five major demonstration cities for fuel cell vehicles, as the province has abundant hydrogen production resources. .
The five groups are the Beijing-Tianjin cluster, Shanghai and neighboring cities, cities in Guangdong province, cities in Henan province, and cities in Hebei province.
Companies in this sector are more concerned about technical issues. Gong Mingming, public relations officer of FTXT Energy Technology, said that the cost of green hydrogen and the storage and transportation of hydrogen have become major hurdles, currently affecting the development of this field.
FTXT is a leading Chinese company specializing in the research and development, production and sales of hydrogen fuel cell products.
Gong added that the low efficiency of hydrogen filling is another problem. China has more than 400 hydrogen stations, and another 300 are under construction, making it number one in the world.
“However, some stations have been renovated and it takes more than 30 minutes to refuel one vehicle,” she said.
When faced with such problems, Gong said companies across the industry chain need to work together to solve technical problems.
He also said authorities should open up the sector and encourage demonstration projects in fields ranging from energy storage to power generation.
FTXT predicts that the first turning point in this field will be around 2025, when the number of vehicles in Japan will reach 50,000.
The country's hydrogen production will reach 1 trillion yuan ($139 billion) by 2025, according to the China Hydrogen Alliance.
FTXT estimates that at this scale, the cost of a fuel cell system will be less than 1,200 yuan per kilowatt, and the price of hydrogen at filling stations in some regions will be less than 25 yuan per kilogram.
In addition to cost, advances are also being made in core components such as the stack. Earlier this month, FTXT displayed a variety of core components at the Japan Fuel Cell Exhibition, including 100kW and 255kW engines, over 300kW graphite plate stacks, and 70 MPa storage tanks.
According to the company, these products are independently developed by FTXT, and some of the key performance indicators have reached international peaks.
State-owned companies such as Sinopec are moving into this field. Sinopec owns the country's largest fuel transportation network, with more than 30,000 retail outlets. China is on track to become the largest hydrogen supplier.
According to the National Big Data Alliance of New Energy Vehicles, the energy giant sells more than 20,000 tons of hydrogen each year, accounting for about 40% of the country's total hydrogen volume.
Consulting firm McKinsey & Company says investing in sustainable power value chains is an important step for oil and gas companies to diversify and expand the industry, as their traditional business models come under pressure. He said this could provide an opportunity to play a leading role during the transition period.
Some local governments have announced preferential treatment for fuel cell vehicles. For example, in Shandong province, heavy fuel cell trucks will be exempt from highway tolls starting in March.
Highway tolls account for about a quarter of the lifetime cost of ownership of these vehicles, according to Shandong newspaper Jinan Times.
In addition, the price of fuel cell heavy-duty trucks has fallen from about 2 million yuan in 2021 to 1.3 million yuan now.
Research institute BloombergNEF says hydrogen fuel cell vehicles are expected to expand rapidly as China sets dual carbon targets of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. He said that
