Hydrogen sector gets policy catalysts for China's low-carbon shift

Chinese authorities have rolled out policies to support the development of the hydrogen energy sector, paving the way for more diversified approaches to China's transition toward a more sustainable, low-carbon economy.

Authorities in northwest China's Shaanxi Province announced on Thursday at the second Western Hydrogen Energy Expo that the province will fully exempt hydrogen-powered vehicles equipped with ETC devices from expressway tolls. The new move will take effect on September 1 and last three years. Meanwhile, subsidies will also be offered to facilitate the construction of hydrogen refueling stations on expressways.

This has made Shaanxi the latest player in China to adopt such supportive measures for hydrogen-powered vehicles. In March this year, Shandong Province, in east China, became the first to waive toll fees for hydrogen-powered vehicles. Sichuan and Inner Mongolia's Ordos soon followed suit, and experts believe these moves will play a positive role in optimizing the commercial operation of fuel-cell vehicles.

"At present, the cost of purchasing and running fuel-cell vehicles is quite high. In addition to relying on technological advancements and mass production to reduce costs, active government guidance and nurturing are also essential for the rapid development of this industry," said Liu Jianguo, head of the hydrogen energy science and engineering department at North China Electric Power University.

"Heavy-duty trucks powered by fuel cells are particularly promising, and by reducing or eliminating tolls on expressways, we can lower the total cost of using these trucks over time," Liu said, adding that this will make it easier to introduce more of these vehicles, which in turn will boost the whole industry.

The China automotive strategy and policy research center has calculated that a 49-tonne fuel-cell truck costs about 20 percent more to operate than a similar diesel truck. If expressway tolls are waived, the operating cost could drop by 25 percent.

According to a blue book on China's hydrogen-powered vehicles, the current toll for heavy-duty trucks on expressways is approximately 2.6 yuan (about 36 U.S. cents) per kilometer. Assuming a truck operates 300 days a year at 800 kilometers per day, it would consume about 24 tonnes of hydrogen annually and incur tolls of roughly 600,000 yuan. Adding 100 more fuel-cell trucks to the fleet could stimulate nearly 300 million yuan in industrial chain value, including hydrogen production and refueling infrastructure, potentially boosting the overall industry value by 800 million to 1 billion yuan.

Hydrogen energy was highlighted in China's government work report this year for the first time as a crucial emerging industry, as the country seeks to meet its carbon-emission targets.

According to a report by Sinopec Group, China's major oil refiner, the country's hydrogen energy consumption is projected to reach nearly 86 million tonnes by 2060, with an industry scale of 4.6 trillion yuan.

China aims to have 50,000 hydrogen fuel-cell vehicles on the road by 2025, according to a government plan for the hydrogen sector.

"The potential for hydrogen energy is vast, yet we face the challenge of developing safe and cost-effective methods for hydrogen storage and transportation," said Wang Jingfeng, executive director of the Chongqing Institute of New Energy Storage Materials and Equipment.

The institute was established by Chongqing University, in partnership with the Liangjiang New Area in Chongqing, to amalgamate cutting-edge research and development with industry resources, thereby constructing a premier platform for scientific inquiry.

"Our current research into magnesium-based battery materials and hydrogen storage technologies is leading the industry, marking a significant stride toward the future of energy solutions," Wang added.

(Cover image via CFP)