Development of China’s Hydrogen Energy Industry
Click:0    DateTime:Jun.20,2022

By Liu Jian, Energy Research Institute of the National Development and Reform Commission

Development situation

China positions hydrogen energy industry, which is in the early stage of development, as a IotF (Industries of the Future), as detailed in 14th Five-Year Plan and Outline of Vision 2035, and calls for improving R&D on hydrogen energy technologies to international advanced level by 2025 via kicking off a batch of key projects – in an attempt to change the situation that China lags far behind advanced countries in core hydrogen energy technologies and related R&D capability. Hydrogen energy will become a key part of future energy system, according to Medium- and Long-term Development Plan for Hydrogen Energy Industry (2021-2035). Hence a big impetus in making the nation’s carbon emissions peak by 2030, achieving carbon neutrality by 2060 and propelling enterprises to upgrade or transform.

A main source of hydrogen energy will be green hydrogen, made by adopting electrolysis of water and utilizing power generated by renewable energy resources, like wind, solar energy, etc. With applications to gradually expand in the fields of transportation, construction, etc., green hydrogen will be an important supplement to green electricity in end energy consumption. Renewable energy resources are increasingly more used to generate power, and for future power system, large-capacity hydrogen storage will be an indispensable, flexible regulating measure suitable for a long period. Further, hydrogen energy is expected to team up with CCUS technology to produce zero-carbon industrial raw materials and fuels, trying to reduce carbon dioxide in the atmosphere.

Main problems

In recent years, progresses have been made in fuel cells, product properties and product localization (some components applying to fuel cells). However, some problems still exist, including immature key technologies (pertaining to making hydrogen via electrolysis of water, hydrogen supply, etc.), high costs, the need to improve standard system and related policies, etc.

1. Immature technologies

There are shortcomings in domestic fuel cell technologies. In spite of partial technical experimental data close to foreign advanced level, core materials such as catalysts and carbon paper have to be imported to meet domestic demand, due to the lack of scale production technologies and mature products. Breakthroughs are needed in technologies regarding high-flexibility alkaline electrolyzers, solid oxide fuel cells, low-cost and safe hydrogen storage/transportation (involving pure hydrogen pipeline, cryogenic liquid hydrogen and so on), etc. Related technologies need to be upgraded to reduce costs of proton exchange membrane fuel cells.

2. High costs

Costs of producing hydrogen with renewable energy resources depend on electricity prices and electrolyzer costs. Producers will spend more than RMB20 making one kilogram of hydrogen, calculated based on electricity cost of RMB0.3/kWh and electrolyzer investment of RMB1 500/kW in western China. In addition, hydrogen storage and transportation both require expenses. Hence, utilization costs of green hydrogen are obviously higher than costs of hydrogen made by fossil energy resources.

3. Lack of related standards

A kind of flammable and explosive gas, hydrogen is easy to cause explosion accidents, and is listed as hazardous chemical in China, which mainly refers to foreign standards in the area of fuel cell vehicles. Domestic hydrogen energy industry has to contend with difficulties like weak R&D ability on hydrogen energy safety technologies, the lack of reliability test and monitoring methods of hydrogen-related equipment, materials and components.

Suggestions

1. To focus on R&D of core technologies

Low-cost, efficient technology to make hydrogen via electrolysis of water should be a R&D focus. Further, industry players should speed up R&D on techniques related to transportation pipelines, liquid hydrogen, key materials of fuel cells (e.g. catalysts and carbon paper), etc. Other suggestions mainly include attracting and cultivating technical personnel, mastering mass production technologies with fully independent intellectual property rights, researching technologies to meet requirements of green hydrogen production, storage, transportation and application.

2. To establish hydrogen energy standard system

Relevant departments should establish national key laboratories responsible for formulation of safety standards for hydrogen energy. Existing hydrogen energy related criteria – e.g. Technical Specification for Hydrogenation Stations and Regulations on Road Transport of Hazardous Goods – should be improved and be more detailed in aspects of general safety requirements, materials in contact with hydrogen, hydrogen sealing, explosion proofing, etc. Formulation of some standards should get more attention, like criteria regarding hydrogen production with renewable energy resources, pipeline transportation of hydrogen, hydrogenation stations (liquid hydrogen), etc.

3. To roll out more policies to support green hydrogen

Relevant departments should stimulate green hydrogen industry via issuing supportive policies, especially more targeted policies such as fund support policy, and should guide banks on conducting green hydrogen credit business. In addition, a carbon trading and settlement platform should be established for green hydrogen enterprises.