Page 64 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
and use of hydrogen. South Korea's Hydrogen long with 10 stations. Each tram has a maximum
Economy Promotion and Hydrogen Safety capacity of 360 passengers and can reach speeds
Management Law, which came into effect in of up to 70 km per hour35. The demonstration line
2021, focuses on three key areas: hydrogen is a significant achievement as it provides valuable
vehicles, refuelling stations and fuel cells30. data for future large-scale production and
The implementation of the law is expected to application of hydrogen trams, and has positive
accelerate South Korea's goal of increasing FCEV demonstration effect for the development of the
production to 6.2 million and raising the number national hydrogen energy industry.
of hydrogen refuelling stations to 1,200 by 204031.
The GBA could consider a similar approach Promoting low-carbon lifestyle with Intercity
in establishing a comprehensive regulatory railway network
framework for the use of hydrogen in the
transportation sector. Improving transportation networks not only
provides greater convenience for the movement
The competitiveness of FCEVs largely depends of goods, services and talent, but also creates
on the costs of hydrogen. Currently, green new investment opportunities within and beyond
hydrogen costs around RMB40 (approx. US$5.5) the GBA. In 2020, the National Development and
per kilogram in Guangdong32. By 2025, the retail Reform Commission approved the RMB474.1
price of hydrogen for FCEVs in Guangdong is billion (approx. US$66 billion) Guangdong-Hong
projected to fall to less than RMB30 (approx. Kong-Macao Greater Bay Area Intercity Railway36.
US$4.4) per kilogram33, making it a more The intercity railway plan will help to achieve a
affordable and attractive option. In the future, the “one-hour living circle” by integrating high-speed
GBA can leverage its advantage of having a fully railways, intercity railways and local metro lines.
integrated hydrogen supply chain and being the Under the plan, the rail network in the GBA is
largest FCEV industry cluster in China to produce expected to reach 4,700 km by 2025 and 5,700
large-scale hydrogen. As technology improves km covering cities above the county level in
and production scales, the costs of hydrogen will Guangdong province by 2035.
become more economically viable.
As the intercity railway plan gains momentum,
Case study: Foshan Gaoming Hydrogen- it will bring new investment opportunities such
Powered Tram Demonstration Line as the transit-oriented development (TOD). Well-
designed TOD promotes low-carbon lifestyles and
The Foshan Gaoming Tram Demonstration has the potential to reduce carbon emissions. TOD
Line is the world's first commercially operated not only encourages a shift from private vehicles
hydrogen-powered tram. The demonstration line to public transit, but also creates connected and
has two phases with a total project investment of compact urban spaces that facilitate walking and
RMB1.07 billion (approx. US$149 million)34. Phase cycling. A notable example of TOD investment is
one of the demonstration line began operation the West Kowloon Station in Hong Kong. The West
in December 2019 and is approximately 6.6 km Kowloon Station provides seamless connections
between Hong Kong and major cities in the
30 The Korea Herald, http://www.koreaherald. Chinese mainland via the Guangzhou-Shenzhen-
com/view.php?ud=20210208000926 Hong Kong Express Rail Link, as well as the rest
31 International Energy Agency, https://www. of the world through the Airport Express and the
iea.org/policies/6566-korea-hydrogen-economy-road- Hong Kong International Airport. It also serves as
map-2040 an integrated hub for people to live, work and play
32 South China Morning Post, https://www.scmp. with well-connected walkways and landscaped
com/business/article/3194930/hong-kongs-towngas- pedestrian paths.
says-hydrogen-production-tests-successful-ready-fuel
33 Guangdong Provincial Development and Re- 35 Sohu news, https://www.sohu.
form Commission, http://drc.gd.gov.cn/ywtz/content/ com/a/357357999_479470
post_3993253.html 36 National Development Reform Commis-
34 People’s Government of Guangdong Prov- sion, https://www.ndrc.gov.cn/xwdt/tzgg/202008/
ince, https://www.gd.gov.cn/gdywdt/dsdt/content/ t20200804_1235524.html?code=&state=123
post_2708629.html
64
and use of hydrogen. South Korea's Hydrogen long with 10 stations. Each tram has a maximum
Economy Promotion and Hydrogen Safety capacity of 360 passengers and can reach speeds
Management Law, which came into effect in of up to 70 km per hour35. The demonstration line
2021, focuses on three key areas: hydrogen is a significant achievement as it provides valuable
vehicles, refuelling stations and fuel cells30. data for future large-scale production and
The implementation of the law is expected to application of hydrogen trams, and has positive
accelerate South Korea's goal of increasing FCEV demonstration effect for the development of the
production to 6.2 million and raising the number national hydrogen energy industry.
of hydrogen refuelling stations to 1,200 by 204031.
The GBA could consider a similar approach Promoting low-carbon lifestyle with Intercity
in establishing a comprehensive regulatory railway network
framework for the use of hydrogen in the
transportation sector. Improving transportation networks not only
provides greater convenience for the movement
The competitiveness of FCEVs largely depends of goods, services and talent, but also creates
on the costs of hydrogen. Currently, green new investment opportunities within and beyond
hydrogen costs around RMB40 (approx. US$5.5) the GBA. In 2020, the National Development and
per kilogram in Guangdong32. By 2025, the retail Reform Commission approved the RMB474.1
price of hydrogen for FCEVs in Guangdong is billion (approx. US$66 billion) Guangdong-Hong
projected to fall to less than RMB30 (approx. Kong-Macao Greater Bay Area Intercity Railway36.
US$4.4) per kilogram33, making it a more The intercity railway plan will help to achieve a
affordable and attractive option. In the future, the “one-hour living circle” by integrating high-speed
GBA can leverage its advantage of having a fully railways, intercity railways and local metro lines.
integrated hydrogen supply chain and being the Under the plan, the rail network in the GBA is
largest FCEV industry cluster in China to produce expected to reach 4,700 km by 2025 and 5,700
large-scale hydrogen. As technology improves km covering cities above the county level in
and production scales, the costs of hydrogen will Guangdong province by 2035.
become more economically viable.
As the intercity railway plan gains momentum,
Case study: Foshan Gaoming Hydrogen- it will bring new investment opportunities such
Powered Tram Demonstration Line as the transit-oriented development (TOD). Well-
designed TOD promotes low-carbon lifestyles and
The Foshan Gaoming Tram Demonstration has the potential to reduce carbon emissions. TOD
Line is the world's first commercially operated not only encourages a shift from private vehicles
hydrogen-powered tram. The demonstration line to public transit, but also creates connected and
has two phases with a total project investment of compact urban spaces that facilitate walking and
RMB1.07 billion (approx. US$149 million)34. Phase cycling. A notable example of TOD investment is
one of the demonstration line began operation the West Kowloon Station in Hong Kong. The West
in December 2019 and is approximately 6.6 km Kowloon Station provides seamless connections
between Hong Kong and major cities in the
30 The Korea Herald, http://www.koreaherald. Chinese mainland via the Guangzhou-Shenzhen-
com/view.php?ud=20210208000926 Hong Kong Express Rail Link, as well as the rest
31 International Energy Agency, https://www. of the world through the Airport Express and the
iea.org/policies/6566-korea-hydrogen-economy-road- Hong Kong International Airport. It also serves as
map-2040 an integrated hub for people to live, work and play
32 South China Morning Post, https://www.scmp. with well-connected walkways and landscaped
com/business/article/3194930/hong-kongs-towngas- pedestrian paths.
says-hydrogen-production-tests-successful-ready-fuel
33 Guangdong Provincial Development and Re- 35 Sohu news, https://www.sohu.
form Commission, http://drc.gd.gov.cn/ywtz/content/ com/a/357357999_479470
post_3993253.html 36 National Development Reform Commis-
34 People’s Government of Guangdong Prov- sion, https://www.ndrc.gov.cn/xwdt/tzgg/202008/
ince, https://www.gd.gov.cn/gdywdt/dsdt/content/ t20200804_1235524.html?code=&state=123
post_2708629.html
64
