Three Departments Deploy Hydrogen Energy Comprehensive Application Pilot Program

On March 16, the Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission announced the “Notice on Conducting Pilot Projects for Comprehensive Hydrogen Energy Applications” (hereinafter referred to as the “Notice”). The plan is to select city clusters with strong industrial foundations, rich application scenarios, robust hydrogen resource guarantees, and complete industrial chains through a “list unveiling” approach to lead the pilot. By 2030, hydrogen energy in urban clusters will be scaled across multiple fields; the nationwide fleet of fuel cell vehicles aims to reach 100,000 units.

Analysis suggests that as a vital component of the future national energy system, hydrogen energy is at a critical point of scaling and commercialization. During the 14th Five-Year Plan, conducting comprehensive hydrogen application pilots will leverage scenario-driven development, technological support, and policy backing to promote the large-scale, high-quality growth of China’s hydrogen industry. This will help expand green electricity use, cultivate new drivers of economic growth, and facilitate deep decarbonization and green transformation of traditional industries.

During the 14th Five-Year Plan, China has initially established a relatively complete industrial and supply chain for hydrogen energy. By the end of 2025, cumulative sales of hydrogen fuel cell vehicles will approach 40,000 units, with 574 hydrogen refueling stations and a hydrogen refueling capacity exceeding 360 tons per day, ranking first globally. Several projects for green hydrogen production at the scale of 10,000 tons, green ammonia and methanol at 100,000 tons, and hydrogen metallurgy at the million-ton level have been launched, with some green hydrogen applications replacing traditional processes in refining and coal chemical industries.

A responsible official from the Energy Conservation and Comprehensive Utilization Department of the Ministry of Industry and Information Technology stated that China’s hydrogen industry has achieved a “from zero to one” breakthrough and is entering a critical stage of crossing technological and economic inflection points for rapid, large-scale development. However, challenges remain, including limited application scenarios, shortages of green hydrogen, high costs, and difficulties in storage, transportation, and refueling. The commercial model is not yet formed, and market demand needs to be further released. Continuous efforts and targeted support at the national level are necessary, with application-driven approaches to identify and solve problems through practical use.

In response, the “Notice” proposes expanding hydrogen application scenarios from fuel cell vehicles to other fields such as transportation and industry within city clusters. By 2030, hydrogen in these clusters will be scaled across multiple fields, with the average price of terminal hydrogen reduced to below 25 yuan per kilogram, aiming for around 15 yuan per kilogram in some advantageous regions. The number of fuel cell vehicles nationwide is expected to double from 2025, reaching 100,000 units. As application scales up, breakthroughs in hydrogen application technologies, processes, and equipment—such as fuel cells, electrolyzers, storage and transportation devices, and materials—will be driven, promoting hydrogen as a new engine for economic growth.

The “Notice” specifies that each city cluster should prioritize pilot projects in areas 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 application scenarios to form an integrated hydrogen energy ecosystem comprising “one general fuel cell vehicle scenario + N industrial application scenarios + X innovative scenarios.”

Specifically, one general scenario involves promoting medium- and heavy-duty, medium- and long-distance trucks, and cold chain logistics vehicles. N industrial scenarios include large-scale applications of green ammonia and methanol, hydrogen-based chemical raw materials substitution, hydrogen metallurgy, and hydrogen-blended combustion. X innovative scenarios encompass ships, aviation, rail transit, and two-wheeled vehicles.

This will facilitate the expansion of hydrogen application from fuel cell vehicles to other suitable fields such as transportation and industry. Zhao Weidong, Director of the Energy Conservation and Environmental Protection Institute at CCID Consulting, told the “Economic Information Daily” that beyond fuel cell vehicles, hydrogen has potential for large-scale applications in hydrogen metallurgy, green chemical industries, hydrogen-based green fuels for shipping, and hydrogen-powered heating and power generation. For example, as the largest source of industrial carbon emissions, steelmaking could significantly reduce emissions by replacing traditional coke oven steelmaking with hydrogen metallurgy. Currently, companies like Hebei Iron and Steel Group, China Baowu, and China Steel Research have launched or are constructing hydrogen metallurgy projects, with hydrogen vertical furnace technology developing rapidly and an installed capacity of about 2 million tons per year. As an important chemical reducing agent, hydrogen also has broad prospects in coal and oil chemical industries.

According to Guojin Securities’ estimates based on the 2026 government work report’s carbon reduction targets per unit of GDP, demand for green hydrogen will reach 3 million tons in 2026, driving electrolyzer capacity to about 27.8 GW. During the 14th Five-Year Plan, green hydrogen demand is expected to rise to 65 million tons, corresponding to approximately 602 GW of electrolyzer capacity. The downstream applications of hydrogen are gradually becoming clearer, with initial breakthroughs expected in the least price-sensitive sectors such as transportation and chemicals, progressing along the path of “green shipping, hydrogen heavy trucks, chemicals, metallurgy, and energy storage.”

The “Notice” also emphasizes establishing and improving safety management systems to promote pilot projects safely. It encourages pilot cities to introduce supportive policies and increase R&D support for key technologies and equipment in hydrogen production, storage, transportation, and utilization. Improving policy and regulatory environments and facilitating convenient policies such as fuel cell vehicle access across cities are also encouraged.

Zhao Weidong noted that the next step should focus on “scenario-driven, system-closed-loop, multi-energy complementary, and integrated development,” accelerating the formulation of comprehensive support policies aligned with the new stage of hydrogen industry development. This includes leading technological breakthroughs and expanding application markets. Key areas should focus on critical links and prominent issues, leveraging application scenarios, technological support, and business model exploration to drive industry development from point to surface, reducing costs through large-scale multi-scenario applications. Systematic efforts should be made to advance key technologies across the entire hydrogen “production, storage, transportation, and utilization” chain, promoting industry-wide cost reduction and efficiency improvements through technological innovation.