Hydrogen energy track gets a boost! Three departments release major announcement! Six pilot missions clarified

Hydrogen energy sector welcomes favorable policies.

On March 16, according to the official website of the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission issued the “Notice on Conducting Pilot Projects for Comprehensive Hydrogen Energy Applications” (hereinafter referred to as the “Notice”). The notice clarifies that city clusters will serve as pilot entities, promoting cost reduction of hydrogen energy through large-scale multi-scenario applications, driving high-quality development of the hydrogen industry, and supporting a comprehensive green transformation of the economy and society.

It is understood that the three departments will select city clusters with strong industrial foundations, rich application scenarios, robust hydrogen resource guarantees, and complete industrial chains to pioneer comprehensive hydrogen energy application pilots through a “list unveiling” approach. They will scientifically, orderly, and actively explore pathways for commercializing hydrogen energy, improve industry development policies, and promote the integrated development of the entire hydrogen “production, storage, transportation, and utilization” industry chain.

The “Notice” specifies that by 2030, hydrogen energy in city clusters will achieve large-scale application across multiple fields, with the terminal hydrogen price dropping below 25 yuan per kilogram, aiming for around 15 yuan per kilogram in some advantageous regions; the nationwide fuel cell vehicle fleet will double compared to 2025, striving to reach 100,000 vehicles. Through expanded application scale, breakthroughs in hydrogen energy technology, processes, and equipment will be driven, leading to iterative upgrades of fuel cells, electrolyzers, storage and transportation devices, and materials. This will help hydrogen energy become a new economic growth point and support the full green transformation of economic and social development.

An official from the Ministry of Industry and Information Technology stated that China’s hydrogen energy industry has achieved a “from 0 to 1” breakthrough. By the end of 2025, cumulative sales of hydrogen fuel cell vehicles will approach 40,000 units, with the number of hydrogen refueling stations and capacity ranking first globally, and green hydrogen production capacity around 250,000 tons. The pilot projects will address issues such as limited application scenarios, high costs, and transportation difficulties, pushing the hydrogen industry into a new stage of scaled development.

Six Major Pilot Tasks Clarified

Regarding pilot tasks, the “Notice” proposes that each city cluster should prioritize testing scenarios such as fuel cell vehicles, green ammonia and methanol, hydrogen-based chemical raw materials substitution, hydrogen metallurgy, and hydrogen-blended combustion. They should actively explore innovative hydrogen applications to form a comprehensive hydrogen energy ecosystem comprising “one general fuel cell vehicle scenario + N industrial application scenarios + X innovative application scenarios.”

(1) Fuel Cell Vehicles. Focus on building hydrogen highways and corridors, promoting large-scale use in medium and heavy-duty, long-distance transportation, and cold chain logistics. Encourage applications in buses, urban logistics, sanitation, and construction waste transport, and explore use in government and ride-hailing vehicles.

(2) Green Ammonia and Methanol. Improve the technical and economic viability of green ammonia and methanol, expand downstream consumption, innovate production technologies and processes, and promote large-scale production and application. Develop integrated renewable energy hydrogen production projects and off-grid hydrogen production as appropriate. Establish stable downstream channels for green synthesis ammonia and methanol. Strictly prohibit the construction of coal-based ammonia projects under the guise of green ammonia.

(3) Hydrogen-based Chemical Raw Material Substitution. Promote carbon reduction in refining, coal chemical, and other hydrogen-consuming industries by scientifically developing renewable hydrogen projects to gradually replace hydrogen produced from coal and natural gas. Encourage the layout of hydrogen storage and transportation infrastructure.

(4) Hydrogen Metallurgy. Facilitate the transition of the steel industry from high-carbon to low-carbon processes by utilizing nearby industrial by-product hydrogen and renewable hydrogen to build low-carbon metallurgical facilities using hydrogen-rich or pure hydrogen as reducing agents. Establish stable downstream channels for low-carbon steel and related products.

(5) Hydrogen Blended Combustion. Promote green and low-carbon heating for industry and residents by safely integrating renewable hydrogen as a high-quality heat source into natural gas pipelines or industrial boilers and kilns, gradually increasing the hydrogen blending ratio.

(6) Innovative Application Scenarios. Explore diverse hydrogen applications in rail locomotives, ships, mining trucks, forklifts, two-wheelers, aircraft, backup power, combined heat and power, new energy storage, electronics, pharmaceuticals, and other fields.

Reward Cap Not Exceeding 1.6 Billion Yuan

Regarding reward standards, the “Notice” states that the central government will adopt a “performance-based” approach, providing financial support to city clusters. The reward levels will be set based on the application status of terminal products or hydrogen scale in each scenario. The pilot period for each city cluster is four years, with a maximum reward of 1.6 billion yuan per cluster. The funds will be centrally managed and used solely to support comprehensive hydrogen applications, not for balancing budgets, repaying government debts, or clearing overdue payments to enterprises.

The “Notice” requires that each city cluster fully leverage the reward funds to effectively reduce hydrogen costs and ensure that benefits are passed down to terminal product consumption.

In terms of performance evaluation and fund disbursement, the “Notice” stipulates that after each pilot year, the leading city of each cluster must compile a self-assessment report within 30 days, summarizing the previous year’s progress, task completion, issues faced, work plans, and detailed application and hydrogen usage data for each scenario. The report must be reviewed and approved by provincial departments of industry, finance, and development reform before being submitted to the three ministries.

The three departments will entrust third-party organizations to conduct performance evaluations through document review, field inspections, on-site verification, and expert assessments, combined with data from the hydrogen comprehensive application management platform, and issue performance reports. Using a “pre-allocate then settle” approach, after approval, the central government will pre-disburse a portion of the reward funds to support the initiation of pilot projects. After each year, the departments will calculate reward points based on performance, with each point generally worth 80,000 yuan.

After policy implementation concludes, the overall performance evaluation results will determine the final reward fund settlement. Projects already supported by long-term special bonds, central budget investments, or government special bonds cannot reapply for this pilot reward.

(Source: Securities Times)