Hydrogen Energy Comprehensive Application Pilot Launch: Opportunities for Industry Chain Companies

The Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission recently jointly issued the “Notice on Conducting Pilot Projects for Comprehensive Hydrogen Energy Applications” (hereinafter referred to as the “Notice”). It states that cities with strong industrial foundations, rich application scenarios, robust hydrogen resource guarantees, and complete industrial chains will be selected through a “ranking and bidding” approach to pioneer comprehensive hydrogen energy application pilots. The goal is to scientifically, orderly, and actively explore pathways for commercializing hydrogen energy, improve the policy environment for industrial development, and promote the integrated development of the entire hydrogen energy industry chain, including production, storage, transportation, and utilization.

The “Notice” proposes that by 2030, hydrogen energy in urban clusters will achieve large-scale application across multiple fields. The average price of hydrogen for end-use will fall below 25 yuan per kilogram, with efforts to reduce it to around 15 yuan per kilogram in some advantageous regions. The nationwide number of fuel cell vehicles is expected to double compared to 2025, reaching 100,000 units. Through expanded application scale, breakthroughs in hydrogen application technologies, processes, and equipment will be driven, leading to iterative upgrades of fuel cells, electrolyzers, storage and transportation devices, and materials. This will help hydrogen energy become a new economic growth point and support the comprehensive green transformation of economic and social development.

CITIC Securities points out that the pilot projects will expand hydrogen application scenarios from fuel cell vehicles to transportation, industrial, and other diverse fields. This will enhance clean, low-carbon hydrogen supply capacity, overcome technical bottlenecks in hydrogen application, and break through industry constraints. Ultimately, a replicable commercial application model will be formed, creating an efficient comprehensive hydrogen energy application system. This will promote the integrated development of the entire “production, storage, transportation, and utilization” industry chain, improve industry policies, and build a high-quality industrial ecosystem. Key recommendations include integrated operators of wind power-based hydrogen, ammonia, and alcohol production. Once subsidy schemes are clarified, operators with large-scale production capacity and excellent flexible production capabilities will clearly benefit, with the cost of producing hydrogen per ton decreasing and the economic viability continuously improving. Additionally, the flexible nature of their production processes will enable them to adapt quickly to market demands, further enhancing overall economic efficiency.