Recently, the Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission jointly issued the "Notice on Carrying out Pilot Projects for Comprehensive Application of Hydrogen Energy", which clarifies the selection of urban clusters with good industrial foundations, rich application scenarios, strong resource guarantee capabilities, and complete industrial chains through the "unveiling and leading" method, and takes the lead in carrying out pilot projects for comprehensive application of hydrogen energy. This move aims to scientifically and orderly explore the comprehensive application path of hydrogen commercialization, improve the industrial policy environment, and promote the integrated development of the entire hydrogen energy production, storage, transportation, and utilization industry chain.

The head of the Energy Conservation and Comprehensive Utilization Department of the Ministry of Industry and Information Technology stated that currently, hydrogen energy applications in China still face problems such as limited application scenarios, insufficient supply of green hydrogen, high prices, and difficulties in storage, transportation, and refueling. Mature business models have not yet been formed, and market demand needs to be further released. This requires application as the driving force, discovering and solving problems in actual energy use scenarios, and 'riding the wave' of hydrogen energy as an emerging field, and then 'sending it off'

The pilot program adheres to the principles of application driven, scenario driven, tailored to local conditions, and collaborative linkage. The core goal is to reduce the cost of hydrogen energy through large-scale application in multiple scenarios, overcome a number of technological bottlenecks, break through industrial development bottlenecks, and form a replicable and promotable commercial application model. The pilot will prioritize the layout of scenarios such as fuel cell vehicles, green ammonia alcohols, hydrogen based chemical raw material substitution, hydrogen metallurgy, and hydrogen doped combustion, while simultaneously exploring innovative application scenarios, and building a comprehensive hydrogen energy application ecosystem of "1 fuel cell vehicle general scenario+N industrial application scenarios+X innovative application scenarios".

According to the pilot plan, by 2030, hydrogen energy in urban agglomerations will be applied on a large scale in various fields, and the average price of terminal hydrogen will be reduced to below 25 yuan/kg, striving to be reduced to around 15 yuan/kg in some advantageous areas; The number of fuel cell vehicles in China is expected to double compared to 2025, with the goal of reaching 100000 vehicles. By expanding the application scale, promoting innovation breakthroughs in hydrogen energy application technology, processes, and equipment, achieving iterative upgrades in fuel cells, electrolytic cells, storage and transportation equipment, and materials, hydrogen energy will become a new economic growth point, supporting the comprehensive green transformation of economic and social development.

A person in charge of a new energy technology company stated in an interview with Shanghai Securities News that hydrogen has enormous potential in the fields of distributed power generation and long-term energy storage, and the key is to find application scenarios with commercial logic. The pilot program of the three departments not only provides honorary support, but more importantly, provides supporting subsidies for economically feasible scenarios. I believe that with the advancement of technology and the maturity of the market, these subsidies can better play a driving role, "said the person in charge.

The Notice specifies that the central government will adopt a "reward instead of subsidy" approach, rewarding based on the application of terminal products in various scenarios or the scale of hydrogen use. The pilot period for a single city cluster is 4 years, with a maximum reward limit of no more than 1.6 billion yuan. The reward funds will be coordinated by local governments for the comprehensive application of hydrogen energy, effectively reducing the cost of hydrogen use and transmitting it to the terminal consumption link.

Industry insiders say that as the pilot work progresses, the position of hydrogen energy in China's energy system will become increasingly important. It can not only help achieve the "dual carbon" goal and build a clean, low-carbon, safe and efficient new energy system, but also help China seize the lead in the global hydrogen energy industry competition.

According to a research report by China International Capital Corporation, hydrogen energy is an important path for reducing carbon emissions in the non electric energy sector, and its development is inevitable. During the 15th Five Year Plan period, driven by policy incentives, technological progress, and cost reduction and efficiency improvement, the hydrogen energy industry will accelerate its development, and various links in the industry chain are expected to experience massive growth.Editor/Yang Meiling