context: The National Energy Administration announced it will roll out a new large-scale pilot scheme for the hydrogen energy sector on 10 June, aiming to cover 11 areas across production, transport, storage and end-use application. While production of green or renewable hydrogen still eludes large-scale commercial viability, Beijing is investing heavily to ensure it is a leader in emerging hydrogen technologies.
The NEA (National Energy Administration) will roll out hydrogen energy pilots across the country via two main pathways
- project-based pilots
- promote application of advanced tech and equipment
- validate the feasibility and effectiveness of standards
- explore replicable, clearly modeled development paths based on advanced tech
- region-based pilots
- led by cities, with each application able to include up to three cities
- coordinate implementation of related projects
- focus on establishing cross-departmental coordination mechanisms and management models
- explore sustainable green value mechanisms and integrate different policy resources
The scheme's main objectives are to promote innovative management models, explore development pathways and generate scalable experiences across the supply chain.
Projects meeting the criteria will be prioritised for inclusion in long-term manufacturing loans such as 'two priorities' (national strategic initiatives and critical safety capabilities) and 'two renewals' (equipment upgrades and consumer product replacement programs). They will also receive support for technical equipment demonstration and may participate in the formulation of national and industry standards, as well as in carbon and green electricity certificate markets. The pilots will run through June 2028.
Alongside 11 key areas across production, transport, storage and end-use application, it also encourages the establishment of hydrogen demo platforms and low-carbon transition pilots in mining, ports, logistics and industrial parks. These pilots would focus on full tech chain integration and application scenarios, with the aim of building zero-carbon energy systems centred on hydrogen.
At the end of 2024, more than 600 renewable hydrogen production projects via water electrolysis had been planned across China, with over 150 under construction or already built, according to Caixin. Most are located in northwest and northern China, which makes up nearly 90 percent of total installed hydrogen capacity.
However, the hydrogen sector is still in its infancy, noted Xu Jilin NEA Department of Energy Conservation and Scitech Equipment deputy director. Three key challenges include
- economic viability
- large-scale hydrogen projects lag in terms of technological and operational maturity when compared with traditional energy sources and other renewables
- technological maturity
- many hydrogen technologies and applications are still not ready for commercialisation, making it difficult to overcome cost-effectiveness bottlenecks
- standards and regulations
- standards still need improvement in terms of policy coordination, industrial alignment, application and internationalisation