Beijing is launching a pilot programme to expand industrial use of hydrogen energy, at a time when war in the Middle East is exposing the risks of global reliance on fossil fuels.
Iran’s effective blockade of the Strait of Hormuz amid its war with the United States and Israel – now in its third week – has disrupted oil and gas supplies, prompting some nations to re-examine their energy mix, with renewables emerging as a potential hedge against volatility.
In a Monday notice, the Ministry of Industry and Information Technology and several other agencies set a target to cut the average hydrogen price for end users to below 25 yuan (US$4) per kilogram by 2030, and to about 15 yuan per kilogram in certain “advantaged regions”.
The programme will be applied across urban clusters in sectors such as transport and heavy industry, aiming to double fuel-cell vehicle ownership from 2025 levels to 100,000 units in five years – a sizeable increase for the still nascent sector.
The guidelines also called for expanding hydrogen-powered public transport and urban logistics, and exploring the use of the renewable fuel in ride-hailing fleets. Beijing also plans to blend hydrogen into natural gas pipelines and industrial boilers to promote its use as a heat source.
According to the notice, the programme will “construct renewable hydrogen production projects to gradually replace existing hydrogen production using coal, natural gas and other fossil energy”.
