Pilot Program to Scale Up Hydrogen Energy Usage

The Ministry of Industry and Information Technology (MIIT), along with the Ministry of Finance and the National Development and Reform Commission has jointly launched an initiative to pilot the comprehensive application of hydrogen energy, proposing to drive innovation in hydrogen technologies and equipment.

The initiative aims to scale up hydrogen energy for urban application across diverse fields by 2030, with the average price of terminal hydrogen expected to drop below 25 RMB per kilogram, and to around 15 RMB per kilogram in some advantageous regions, while the national ownership of fuel cell vehicles is projected to double that of 2025, reaching 100,000 units.

By expanding the scale of application, breakthroughs in hydrogen energy technologies, processes and equipment will escalate to facilitate the iterative upgrading of fuel cells, electrolysers, storage and transportation systems, and materials. The resulting plan is to promote hydrogen energy as a new driver of economic growth, supporting a comprehensive green transition in economic and social development.

This pilot initiative will expand hydrogen energy applications from a single scenario of fuel cell vehicles to diversified sectors, including transportation and industry, and build a "1+N+X" integrated application ecosystem. Within this framework, "1" represents the general scenario of fuel cell vehicles, "N" indicates application scenarios in the industrial sector, and "X" refers to innovative application scenarios.

Five urban clusters will be selected based on their merits and each pilot period will last for four years. Financial support in the form of grants, with an upper limit of 1.6 billion RMB for a single pilot city, will be made available and the funds will be specifically used for comprehensive hydrogen energy applications.

Furthermore, pilot cities are encouraged to actively introduce supportive policies in the R&D of key technical equipment in hydrogen production, storage, transportation and utilization. The cities are also encouraged to improve coordination between fiscal and financial policies. Meanwhile, enterprises are encouraged to create conditions that align with policies such as interest subsidies on loans for service sector operators, thereby providing diversified financial support for pilot projects on the comprehensive application of hydrogen energy.

Additionally, the policy and institutional environment will be upgraded to encourage the introduction of facilitative measures — such as enabling the inter-city transit of fuel cell vehicles.

China's hydrogen energy industry has achieved several breakthroughs, entering a critical phase of a rapid and large-scale development.

By the end of 2025, the cumulative sales of hydrogen fuel cell vehicles in China reached close to 40,000 units, with 574 hydrogen refueling stations constructed and a daily refueling capacity exceeding 360 tons, ranking first globally.

The pilot program aims to drive down costs through large-scale, multi-scenario applications, facilitate breakthroughs in hydrogen technology and equipment innovation, and promote the high-quality development of the hydrogen industry.

Source: Science and Technology Daily