China's hydrogen fuel cell technology currently lags significantly behind countries like the United States, Europe, Japan, and South Korea. There is a noticeable gap in both the industrial supply chain and commercialization efforts. However, governments, businesses, and investors are increasingly pouring resources into this sector, aiming to bridge this technological divide.
On February 11, 2018, the China National Hydrogen Energy and Fuel Cell Industry Innovation Alliance was officially established in Beijing. This alliance, led by the National Energy Group, marks a significant step toward advancing hydrogen energy technologies in the country. A fuel cell is an electrochemical device that converts the chemical energy of a fuel—typically hydrogen—into electricity, making it a promising alternative for clean energy generation.
In the automotive industry, hydrogen fuel cell vehicles (FCVs) have become a major focus. As of November 2017, only around 6,000 fuel cell-powered transport vehicles were operating globally, indicating that the market is still in its early stages. Despite this, the potential for growth is immense. Academician Gan Yong from the Chinese Academy of Engineering predicts that the hydrogen energy industry could reach a scale of RMB 10 trillion by 2050, while the Hydrogen Council estimates the global market for hydrogen and fuel cell equipment at $2.5 trillion.
The third wave of development in fuel cell technology has begun, with companies such as Toyota, Honda, and Hyundai leading the charge. These automakers have introduced more mature fuel cell models to the market, and under supportive policies, their products show competitive performance in terms of lifespan, power density, and cost compared to traditional vehicles. This signals the start of the commercialization phase for FCVs.
However, challenges remain. The cost of hydrogen fuel remains high, and infrastructure for refueling stations is limited. In China, the price of hydrogen at the terminal is around 40 yuan/kg, but it often exceeds 70–80 yuan/kg. Japan, which has a more aggressive hydrogen strategy, has managed to keep prices lower through government subsidies and shared investments among stakeholders.
The production side also faces hurdles. The manufacturing costs of fuel cell vehicles are still higher than those of traditional internal combustion engine or battery electric vehicles. For the industry to reach a break-even point, large-scale production is essential. Additionally, public awareness and safety concerns about hydrogen remain significant barriers to adoption.
Despite these challenges, China is making strides. Policies such as the "Energy-saving and New Energy Vehicle Technology Roadmap" aim to increase the number of FCVs on the road, setting targets of 5,000 by 2020, 50,000 by 2025, and one million by 2030. While these goals are ambitious, they reflect the growing commitment to hydrogen energy.
To catch up, China must invest heavily in research, improve its industrial chain, and foster collaboration between the automotive and energy sectors. Companies like SAIC have been investing in fuel cell technology for years, developing various models and pushing forward despite financial and technical challenges.
In the short term, a hybrid approach—combining fuel cells with batteries—may be the most practical solution for China. This allows for faster refueling and longer range, addressing some of the limitations of pure electric vehicles. Meanwhile, commercial vehicles offer a viable entry point for the industry to build up the necessary supply chains and expertise before expanding into passenger cars.
With continued investment, policy support, and strategic planning, China has the potential to play a key role in the global hydrogen energy revolution.
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