Guangdong issued provincial hydrogen strategy boosting FCEVs deployment and hydrogen infrastructure construction
Photo: waste management FCEVs fleet in Foshan, Guangdong province
(Guangdong province, China) On Nov 6th, Guangdong Provincial Development and Reform Commission issued an important policy document “The Guidance to Accelerate Innovation and Development of Hydrogen Industry in Guangdong”. This policy declares the target of hydrogen industry for Guangdong province by 2025 and details the supporting policy instruments, particularly the subsidy standards for FCEVs and hydrogen refueling station owners. It is widely regarded as the official hydrogen strategy of Guangdong province, the most industrialized province and the largest hydrogen hub in China.
The policy states that: “by 2025, Guangdong will deploy over 10,000 FCEVs, build at least 200 hydrogen refueling stations and be capable of supply 100,000 ton hydrogen for road transportation applications”. The policy also set the target of output value of entire hydrogen value chain in Guangdong at 300 billion Rmb by 2027.
Hydrogen infrastructure stands at the core of this policy, this document states that: “accelerate the construction of hydrogen refueling stations… build hydrogen infrastructure appropriately ahead of schedule... Encourage existing gas stations to renovate and expand hydrogen production and refueling devices, encourage new gas stations to plan and build hydrogenation facilities simultaneously. Actively coordinate the construction of the national comprehensive demonstration line of hydrogen energy highways, scientifically plan and build hydrogen corridors, and prioritize the construction of hydrogen stations along the Pearl River Delta’s backbone highways and national highways. In principle, the service areas of highway trunk lines that are qualified for the construction of hydrogenation facilities should be located in During the "14th Five-Year Plan" period, hydrogenation facilities will be built to support medium and long-distance transportation of fuel cell freight vehicles in the province. Actively promote the construction of hydrogen refueling stations in areas with rich application scenarios such as hydrogen energy industrial parks, steel plants, ports and terminals”.
The policy document also specifies the subsidy standard for hydrogen refueling station owners as: during the city cluster demonstration period, if the terminal price of hydrogen refueling stations is lower than 35 Rmb/kg by the end of 2023 and lower than 30 Rmb/kg by the end of 2024 for integrated electrolyzed water hydrogen production and refueling station, they are qualified to be awarded a subsidy of 10 Rmb/kg with a limit of 5 million Rmb. Any price beyond this threshold is not qualified for any subsidy from government.
For the FCEVs owners, the policy says that subsidy will be given based on the powertrain of vehicles’ fuel cell system-3,000 Rmb per kw. The fiscal support comes from central, provincial and municipal government budget by 1/3 each.
Another key guidance of this policy is for electrification of heavy road transportation sector, it says: “promote the electrification transformation of heavy-duty freight vehicles, engineering vehicles and port tractors in cities in the Pearl River Delta, strive to achieve electrification of new vehicles by 2027, and promote emission reduction and consumption reduction in the transportation industry in the Pearl River Delta region.” According to our resources, it is the first time ever that China’s government set a target of heavy road electrification.
The full content of this hydrogen policy is: 《广东省加快氢能产业创新发展的意见》(Chinese version only)