From CNENERGY
BEIJING - The hydrogen energy sector is embarking on a new phase of development following the release of the "Energy Law of the People's Republic of China" on November 8. The law, which explicitly incorporates hydrogen energy into the country's energy management framework alongside conventional sources such as coal, oil, hydropower, wind power, and nuclear power, signals a significant step forward in promoting the utilization and growth of hydrogen.
Jing Chunmei, head of the Energy and Green Low-Carbon Development Research Department at the China International Economic Exchange Center, noted that hydrogen was absent from earlier drafts of the Energy Law. However, during the public consultation process, the input from industry representatives and lawmakers led to a reevaluation, resulting in legislative adjustments that now give hydrogen a prominent place in the nation's energy landscape.
Yang Qiang, General Manager of Yuntao Hydrogen Energy, commented that in the absence of top-level regulatory design in the early days of hydrogen energy development, local governments faced hurdles in promoting the sector. The newly enacted Energy Law offers a stable outlook for growth and instills confidence among businesses to invest in hydrogen-related projects.
Yao Changsheng, CEO of Haide Hydrogen Energy, emphasized that by establishing hydrogen's legal status at the national level, and with the anticipation of subsequent departmental regulations, the market will become more structured. This will clarify the roles and responsibilities of industry regulators and facilitate the formulation of policies that foster the healthy expansion of the hydrogen industry.
Core Competitiveness: The Deciding Factor
Jing Chunmei pointed out that the hydrogen energy sector is at a crucial juncture, transitioning from small-scale demonstrations to large-scale commercial applications. Cost remains a major obstacle, with current production and utilization costs posing significant challenges.
Many companies are looking abroad for growth opportunities. However, innovative enterprises with advanced technologies have managed to achieve higher profitability through product differentiation. Industry experts concur that only those with robust technological capabilities and comprehensive business models will succeed on the international stage, while also respecting cultural differences and the interests of their global partners. The common sentiment is that without first establishing a foothold in the domestic market, it will be difficult to capitalize on overseas prospects.
Yao Changsheng also noted that the Energy Law could potentially enhance investment support for hydrogen projects. This might involve streamlining project approval procedures, creating a more favorable policy environment that accelerates construction timelines, reduces costs, and revitalizes enterprise dynamism.
Three Categories of Cities Poised for Advantage
The China Hydrogen Alliance projects that the output value of China's hydrogen industry will exceed one trillion yuan by 2030. Relevant government departments forecast that by 2035, there will be one million fuel cell vehicles on Chinese roads. With the Energy Law's guidance, there is a possibility of achieving these targets ahead of schedule, potentially by 2050. At that point, hydrogen could account for over 10% of China's terminal energy consumption, generating an annual output value exceeding twelve trillion yuan across the entire supply chain.
The introduction of the Energy Law reflects the government's strengthened commitment to renewable energy and its consumption mechanisms. Yang Qiang identified three types of cities that stand to benefit:
Cities in the northwest region, endowed with abundant renewable resources and generation costs nearing those of traditional fossil fuels.
Traditional heavy industrial centers under pressure to reduce carbon emissions in line with the dual-carbon goals and can adopt hydrogen-based solutions.
Urban areas with established upstream equipment manufacturing clusters that can leverage industry expansion.
Multiple interviewees in the industry believe that as an emerging field with extensive supply chains and vast potential, the sustainable growth of the hydrogen industry requires not only government support policies but also coordinated efforts across the entire industrial ecosystem.