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The hydrogen industry’s development fits into the close relationship between hydrogen energy
China’s broader energy strategy. On March 22, 2022, development and NEV development.
the National Development and Reform Commission
and the National Energy Administration jointly What are the opportunities
released the 14th Five Year Plan for a Modern
Energy System. This plan aims for China to secure and challenges for foreign
its energy supply, speed up decarbonization efforts,
and adopt more efficient energy use practices investors?
through 2025 – and hydrogen energy is set to play a
key role. Investing in green energy in China offers significant,
but often difficult to capture, opportunities.
How is China promoting
On the one hand, China has ambitious plans to
industrial application of decarbonize and become a world leader in green
technology, leading to numerous investments and
hydrogen energy? incentives to grow related industries. On the other
hand, energy has traditionally been dominated
In addition to plans to increase hydrogen energy by state-owned enterprises, many domestic
production and adoption, the Chinese government companies receive subsidies that undercut
has released plans to encourage the industrial foreign competition, and the government’s goals
application of hydrogen energy. for energy security risk increasing skepticism of
dependence on foreign suppliers.
On March 23, 2022, the National Development
and Reform Commission released the Medium- Besides the hydrogen energy production, storage,
and Long-Term Plan for the Development of and transport, many opportunities for foreign
Hydrogen Energy Industry (2021-2035). This plan investors stand to come in the form of application,
lays out a national strategy for developing the such as in hydrogen fuel cells. In 2020, for example,
hydrogen energy industry, complementing local the Japanese auto company Toyota set up a joint
plans created by a number of provinces and cities venture with the Chinese hydrogen fuel cell maker
to develop the industry. Beijing SinoHytec to manufacture fuel cells for the
Chinese market.
According to the plan, China should create a sound
environment for the development of hydrogen In light of the hydrogen energy industry’s challenges,
energy with systems and policies in place by 2025. foreign investors must be strategic when entering
By 2035, China should form an industrial system China, such as by partnering with local companies to
for hydrogen energy and a system for applying gain market access.
hydrogen energy, including for transportation and
energy storage. As with other areas where China seeks to adopt
advanced technology, businesses need to
Hydrogen energy also factors into China’s plans for tread the line between offering high demand
a number of other industries, such as new energy technology and know-how while simultaneously
vehicles (NEVs). For example, the New Energy Vehicle protecting intellectual property and market status,
Industry Development Plan projects hydrogen making partner identification and pre-investment
refueling station (HRS) capacity to grow from 72 units strategy all the more important.
in mid-2020 to 2,000 units by 2035, demonstrating
5 AMCHAM SOUTH CHINA
The hydrogen industry’s development fits into the close relationship between hydrogen energy
China’s broader energy strategy. On March 22, 2022, development and NEV development.
the National Development and Reform Commission
and the National Energy Administration jointly What are the opportunities
released the 14th Five Year Plan for a Modern
Energy System. This plan aims for China to secure and challenges for foreign
its energy supply, speed up decarbonization efforts,
and adopt more efficient energy use practices investors?
through 2025 – and hydrogen energy is set to play a
key role. Investing in green energy in China offers significant,
but often difficult to capture, opportunities.
How is China promoting
On the one hand, China has ambitious plans to
industrial application of decarbonize and become a world leader in green
technology, leading to numerous investments and
hydrogen energy? incentives to grow related industries. On the other
hand, energy has traditionally been dominated
In addition to plans to increase hydrogen energy by state-owned enterprises, many domestic
production and adoption, the Chinese government companies receive subsidies that undercut
has released plans to encourage the industrial foreign competition, and the government’s goals
application of hydrogen energy. for energy security risk increasing skepticism of
dependence on foreign suppliers.
On March 23, 2022, the National Development
and Reform Commission released the Medium- Besides the hydrogen energy production, storage,
and Long-Term Plan for the Development of and transport, many opportunities for foreign
Hydrogen Energy Industry (2021-2035). This plan investors stand to come in the form of application,
lays out a national strategy for developing the such as in hydrogen fuel cells. In 2020, for example,
hydrogen energy industry, complementing local the Japanese auto company Toyota set up a joint
plans created by a number of provinces and cities venture with the Chinese hydrogen fuel cell maker
to develop the industry. Beijing SinoHytec to manufacture fuel cells for the
Chinese market.
According to the plan, China should create a sound
environment for the development of hydrogen In light of the hydrogen energy industry’s challenges,
energy with systems and policies in place by 2025. foreign investors must be strategic when entering
By 2035, China should form an industrial system China, such as by partnering with local companies to
for hydrogen energy and a system for applying gain market access.
hydrogen energy, including for transportation and
energy storage. As with other areas where China seeks to adopt
advanced technology, businesses need to
Hydrogen energy also factors into China’s plans for tread the line between offering high demand
a number of other industries, such as new energy technology and know-how while simultaneously
vehicles (NEVs). For example, the New Energy Vehicle protecting intellectual property and market status,
Industry Development Plan projects hydrogen making partner identification and pre-investment
refueling station (HRS) capacity to grow from 72 units strategy all the more important.
in mid-2020 to 2,000 units by 2035, demonstrating
5 AMCHAM SOUTH CHINA
