Fuel Cell Electric Vehicles (FCEVs)

Abstract

Hydrogen energy, as a secondary energy source characterized by its amply supply, green and low-carbon nature, and extensive application, is gradually becoming one of the crucial pathways for achieving carbon neutrality goals in developed countries worldwide, including Japan, South Korea, the United States, and the European Union. It has been incorporated into China’s “carbon neutrality” energy strategy, serving as a strategic choice to improve energy consumption structure and ensure national energy supply security.

Hydrogen energy, as a secondary energy source characterized by its amply supply, green and low-carbon nature, and extensive application, is gradually becoming one of the crucial pathways for achieving carbon neutrality goals in developed countries worldwide, including Japan, South Korea, the United States, and the European Union. It has been incorporated into China’s “carbon neutrality” energy strategy, serving as a strategic choice to improve energy consumption structure and ensure national energy supply security. Fuel cell electric vehicles (FCEVs), playing a vital role as a key application in the downstream of the hydrogen energy industry chain, have become the primary entry point for early-stage developments in the hydrogen energy sector. Considerable achievements have been made in scaling up their practical applications. By examining the policy framework, the effectiveness of NEV demonstrations and promotions, as well as NEV operation and refueling characteristics at the national and local levels, this chapter presents an overview of the accomplishments and identified issues in the current phase of FCEV promotion. Its objective is to provide valuable data and decision support for the nationwide expansion and application of FCEVs.

7.1 Development Status of the FCEV Industry

7.1.1 Ongoing Improvements in Industrial Policies

• (1) As for top-level design, the “14th Five-Year Plan” clearly defines hydrogen energy as a key component of the national energy system

Amid the context of achieving dual carbon goals, hydrogen energy has gained recognition as a crucial clean energy source and is considered as one of the essential energy routes for the future. The global consensus among major nations highlights the significance of hydrogen energy development. The Japanese government has taken steps to foster an international hydrogen supply chain, leveraging the collaboration of business alliances to coordinate the development of hydrogen energy. Furthermore, they have established an innovation platform for government-industry-academia collaboration to provide technical support for research and development. Through a top-down approach, the South Korean government has established a well-structured roadmap for hydrogen energy development, mitigating uncertainties for companies operating in the hydrogen energy industry. Additionally, they have allocated significant financial resources to incentivize social capital investment in the hydrogen energy sector. The United States regards the development of the hydrogen energy industry as a long-term strategic reserve, fostering collaboration among stakeholders within a competitive framework. In addition, the Department of Energy’s Loan Programs Office (LPO) provides access to debt capital for deploying innovative clean-energy projects. The European Union (EU) is currently prioritizing hydrogen energy as a critical avenue for key industries to address carbon reduction, reduce emissions, and ensure national energy security.

At the national level, there is a consistent emphasis on the need for a transition to green energy, with hydrogen energy officially integrated into the national energy system and clear industry-level planning. As a crucial direction of energy technology revolution and a significant component of future energy strategy, the importance and crucial role of hydrogen energy in industrial development, technological innovation, and energy transition are emphasized in important documents such as the 14th Five-Year Plan for National Economic and Social Development and the Outline of the 2035 Long-Range Objectives, as well as the Opinions of the CPC Central Committee and State Council on the Complete, Accurate and Comprehensive Implementation of the New Development Concept to Do a Good Job in Carbon Peaking and Carbon Neutrality. On March 23, 2022, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) published the Medium and Long-Term Plan for the Development of Hydrogen Energy Industry (2021–2035) (hereinafter referred to as the “Plan”), specifying that hydrogen energy is an integral part of the future national energy system, a crucial vehicle for achieving green and low-carbon transformation in end-use sectors, and a strategic emerging industry and key focus for future development (Table 7.1). The Plan sets three five-year development plans for the hydrogen energy industry: by 2025, a relatively complete supply chain and industrial system will be established, and the fleet of fuel cell electric vehicles (FCEVs) will reach approximately 50,000 units; by 2030, a more comprehensive technological innovation system for the hydrogen energy industry, along with a clean energy hydrogen production and supply system, will take shape; and by 2035, a hydrogen energy industry system will be in place, creating a diverse hydrogen energy application ecosystem encompassing transportation, energy storage, power generation, and industrial sectors.

Table 7.1 Key takeaways of FCEVs outlined in the Medium and Long-Term Plan for the Development of Hydrogen Energy Industry (2021–2035)

The government has introduced a range of dedicated initiatives for hydrogen standardization (Table 7.2) to propel the FCEV industry towards development characterized by high quality, scale, and agglomeration. On October 9, 2022, the NEA issued the Action Plan for Improving Standardization of Carbon Peak and Carbon Neutrality in the Energy Sector (hereinafter referred to as the “Action Plan”). In the field of hydrogen energy, the Action Plan clearly outlines the need to further promote the standardization management of the hydrogen energy industry and accelerate the improvement of top-level design and standard system for hydrogen energy. It involves the development of technical standards for hydrogen production, storage, transportation, refueling, and diversified applications, supporting the full industry chain development of “production, storage, transportation, and utilization” of hydrogen energy. The focus is on the development of standards in areas such as renewable energy-based hydrogen production, hydrogen-electricity coupling, fuel cells, and systems, to increase the effective supply of standards. The establishment of a sound hydrogen energy quality and hydrogen energy testing and evaluation basic standard system is also emphasized.

Table 7.2 Planning documents for fuel cell related standards introduced since 2022

The government has released a series of policies at the national level to support the technological innovation of common technologies and key components in the hydrogen energy industry in the field of fuel cell technology revolution. On April 27, 2022, the Ministry of Science and Technology issued the Notification of Application for National Key R&D Program of “Advanced Structures and Composites” and other Special Programs 2022. The application guidelines cover the key special program on “Hydrogen Technology,” which focuses on four technical directions: green hydrogen production and large-scale transfer storage system, safe hydrogen storage and rapid transmission and distribution system, convenient hydrogen upgrading and efficient power system, and comprehensive demonstration of “hydrogen entering thousands of households.” On August 18, 2022, nine government departments, including the Ministry of Science and Technology, jointly issued the Implementation Plan for Carbon Peak and Carbon Neutrality Supported by Science and Technology (2022–2030) (hereinafter referred to as the “Implementation Plan”). Regarding hydrogen energy, the Implementation Plan explicitly states the research and development directions for renewable energy-based, high-efficiency, and low-cost hydrogen production technologies, large-scale physical and chemical hydrogen storage technologies, technologies of large-scale and long-distance transportation of hydrogen by pipeline, hydrogen safety technologies, as well as exploration and development of new hydrogen production and storage technologies. On October 9, 2022, the National Natural Science Foundation of China (NSFC) issued the Guide to “Dual Carbon” Programs of the Department of Engineering and Materials Science – Fundamental Research on Hydrogen Production and Storage under Dual Carbon Goals (hereinafter referred to as the “Guide”). The Guide specify three funding directions, which include the synergistic conversion of hydrogen and carbon, off-grid hydrogen production, energy transmission, and transformation using renewable energy, as well as hydrogen transportation and regulation within underground porous reservoirs.

The government has introduced policies at the national level to facilitate the training of hydrogen energy professionals and the establishment of related academic disciplines, fostering the sustainable and high-quality development of the hydrogen energy industry. On May 7, 2022, the Ministry of Education issued the Work Plan for Strengthening the Development of Higher Education Talent Training System for Carbon Peak and Carbon Neutrality (hereinafter referred to as the “Work Plan”). The Work Plan makes it clear that, in terms of talent cultivation in the hydrogen energy field, there is a need to strengthen the prediction of talent demand in key industries. By combining the laws of talent development, educational teaching, and technological innovation in the new era, it seeks to expedite the training of scarce talents in new energy, energy storage, hydrogen energy, carbon capture, and other areas. Moreover, it aims to accelerate the establishment of disciplines related to energy storage and hydrogen energy. With the goal of accommodating the large-scale consumption of renewable energy, it promotes the training of talents in energy storage and hydrogen energy at the institutions of higher education, catering to the demand for large-capacity and long-term energy storage, and achieving comprehensive coverage in the entire value chain. Additionally, there is an emphasis on increasing efforts to attract high-level talents from overseas, encouraging colleges and universities to actively seek outstanding talents in areas such as carbon capture, utilization, and sequestration, clean utilization of fossil energy, cutting-edge technologies in renewable energy, energy storage and hydrogen energy, as well as carbon economy and policy research. On top of that, efforts should be made to gather high-level talents from overseas to participate in the development and scientific research of carbon neutrality disciplines.

• (2) The ongoing implementation of local policies raises hopes of surpassing the target set for the promotion of FCEVs during the “14th Five-Year Plan” period.

With the support of national policies and the driving role of demonstration urban agglomerations, typical provinces and cities have successively issued development plans for the hydrogen energy and FCEV industry. It is expected that the national scale of FCEV promotion will exceed the established target by the end of the “14th Five-Year Plan” period. By examining the development plans for the hydrogen energy industry and the specific policies for FCEVs released by various provinces and key cities (Table 7.3), it can be observed that the policy types mainly include industry development plans, guiding opinions for high-quality industry development, action plans, and supportive policies and measures for industry development. In addition to those in urban agglomerations, demonstration projects such as “Hydrogen entering thousands of households” and the Chengdu-Chongqing Hydrogen Corridor are also progressing. On April 16, 2021, the Ministry of Science and Technology and the Shandong provincial government co-organized and implemented the “Hydrogen entering thousands of households” technology demonstration project. The two parties signed a framework agreement for the project, along with multi-scenario demonstration applications of hydrogen production and utilization technologies launched in the cities of Jinan, Qingdao, Zibo, and Weifang. The plan is to establish “a hydrogen highway, two hydrogen ports, three popular science bases, four hydrogen industrial parks, and five hydrogen communities.” On November 30, 2021, both Sichuan Province and Chongqing Municipality initiated the construction of the Chengdu-Chongqing Hydrogen Corridor, collaborating to create an interconnected hydrogen energy-enabled economic network. Looking at the phased promotion targets for the demonstration urban agglomerations, Shandong Province, the Chengdu-Chongqing region, and key provinces in the FCEV sector, the plan is to achieve a national promotion target of over 100,000 FCEVs by the end of 2025, surpassing China's target in this respect at the end of the “14th Five-Year Plan” period.

Table 7.3 National staged targets for promoting FCEVs in major provinces or municipalities and cities

Local policies have broadened their scope of coverage, encouraging diversified applications. By examining the names and scope of hydrogen energy policies in various provinces and municipalities, it can be observed that the direction of industry support and guidance policies has gradually expanded from the transportation sector to include multiple sectors such as transportation, industry, energy storage, and power. The hydrogen energy ecosystem has been developing year by year, covering the entire industry chain of production, storage, transmission, and utilization, and a “1 + N” policy system that caters to multiple industries and scenarios is set to be launched at an accelerated pace. The upper-level guarantees and industrial environment for hydrogen energy development will continue to improve, in order to adapt to the future demands of diversified industrial development.

The support efforts of local policies in non-demonstration urban agglomerations are continually being reinforced. Apart from the five major FCEV demonstration urban agglomerations, non-demonstration cities actively refer to the national policies for FCEV demonstration applications and have implemented their own policy measures, demonstrating equal levels of support. For instance, Zhejiang Province has identified provincial-level FCEV demonstration zones and demonstration sites, prioritizing these areas to expedite the high-quality development of the FCEV industry in the province. In the policy document Opinions on Supporting the Development of the Hydrogen Energy Industry issued by Wuhan City, it is proposed to calculate the credits for vehicles and core components produced in the city based on the national credit accounting method, providing a financial reward of 200,000 yuan/credit to vehicle purchasing enterprises, and subsidies for the construction and operation of hydrogen refueling stations. Chengdu City issued a Notice on Carrying out the Declaration Work for Fuel Cell Electric Vehicle Demonstration Application Projects in Chengdu City in 2022–2023, proposing that newly licensed FCEVs within the demonstration application scope will be awarded demonstration application incentives for this level of NEVs in accordance with national reward credit criteria.

• (3) By leveraging the FCEV demonstration urban agglomerations as trailblazers in the development of hydrogen energy, China directs its strategic resources to propel the structured growth of the fuel cell industry.

FCEVs represent a gateway to hydrogen energy applications, with the demonstration application focusing on urban agglomerations as carriers to centralize key resources, thereby propelling the development of China’s fuel cell industry in an orderly manner. As of the end of 2021, the national “3 + 2” configuration of FCEV demonstration urban agglomerations was formally in place. Among the first demonstration urban agglomerations, the Beijing-Tianjin-Hebei Urban Agglomeration, Shanghai Urban Agglomeration, and Guangdong Urban Agglomeration demonstrate clear advantages in key technologies for fuel cells and FCEV promotion and application, alongside substantial economic strength, making them the pioneering regions for the nationwide promotion and application of FCEVs. Capitalizing on NEV demonstration applications as catalysts, the Hebei Urban Agglomeration and Henan Urban Agglomeration are leveraging their strengths to consistently foster localized promotion characteristics, poised to spur local industrial development. With a demonstration period of 4 years (2022–2025), the five major demonstration urban agglomerations are projected to introduce around 33,000 FCEVs of various types. As the number of demonstration vehicles continues to grow, there will be favorable opportunities for various technical breakthroughs along the fuel cell industry chain, product promotion on a large scale, hydrogen infrastructure development, and other related endeavors, exerting a leading demonstration effect nationwide.

7.1.2 Achievements in the Promotion of FCEVs

Following the principle of prioritizing commercial vehicles, the adoption of fuel cell technology in the transportation sector has demonstrated notable leading effects.

According to the Ministry of Industry and Information Technology of China’s (MIIT) 2022 publication of the Recommended Models Catalogue for New Energy Vehicle Applications (Fig. 7.1), from the first to the twelfth batch, 99 FCEV enterprises and 289 product models were involved, including 1 passenger car, 74 buses, and 214 Vehicle for special purposes. Considering the overall number of recommended models for the year 2022, there were notably more recommended models of FCEV-Vehicle for special purposes that those of buses. Hydrogen fuel cells constitute a significant technological pathway for incorporating hydrogen into the transportation sector. Commercial vehicles powered by hydrogen and heavy-duty engineering machinery fueled by hydrogen have emerged as the principal modes of hydrogen energy application in the transportation sector at present, with effective commercial operational practices being discovered across a range of application scenarios.

Fig. 7.1

Source The 1st to 12th batch of Recommended Models Catalogue for New Energy Vehicle Applications published in 2022

Number of FCEV models in the 1st to 12th batch of Recommended Models Catalogue for New Energy Vehicle Applications published in 2022.

The demonstration and promotion of FCEVs have proven notably successful, with cumulative sales surpassing 12,000 units as of 2022.

Since 2016, China has witnessed a significant upswing in the sales of FCEVs, which surpassed 2737 units in 2019, representing a year-on-year increase of 79.2%. From 2020 onward, there has been a decrease in the sales of FCEVs compared to 2019, due to the influence of the Covid-19 pandemic. Driven by the top-level goals of “carbon peak” and “carbon neutrality,” as well as the effect of demonstration urban agglomerations, the development of the FCEV industry has significantly accelerated nationwide. As of 2022, the cumulative sales of FCEVs across the country had hit 12,309 units (Fig. 7.2). With the gradual refinement of policy and regulatory frameworks and the wider adoption of multi-scenario application models, the scale of FCEV adoption is expected to continue its upward trend.

Fig. 7.2

Source China Association of Automobile Manufacturers

Historical growth of FCEV sales in China.

7.1.3 Development Status of the Upstream and Downstream of the FCEV Industry

• (1) The localization of fuel cell systems and key components is accelerating, with continuous enhancement of self-sufficiency capabilities.

The FCEV industry chain is extensive and involves numerous stakeholders, with the fuel cell system positioned in the middle of the industry chain. The upstream fuel cell engine mainly includes the stack and its core components, auxiliary systems, etc. The stack, as the core component of the fuel cell system, has a significant impact on the key performance and cost of the fuel cell engine. The primary application scenario for fuel cells in the downstream industry is FCEVs, with OEMs being the main stakeholders.

When it comes to key components and raw materials in the fuel cell system, the stack is the core component with high entry barriers. Based on the published specifications of fuel cell system products in China, 100 kW fuel cell systems are already being installed, and the announced indicators of 200 kW systems are aligned with international standards. However, their durability still needs to be verified. Since 2022, SinoHytec, Weichai Power, SHPT, Sinosynergy, and SFCV have successively introduced fuel cell system products with a power of 200 kW or above. Based on the disclosed parameters, the performance indicators such as power rating, power density, and cold start performance of the stack and stack system are generally comparable to international standards. However, due to the lack of actual vehicle operation data, the durability targets of domestic systems and stacks over 20,000–30,000 h still need to be verified. As for core materials, China has achieved 100% self-sufficiency in the preparation of membrane electrode assemblies, bipolar plates, stack assembly, auxiliary systems, and other areas. This development has emerged as a key driving force behind the cost reduction of fuel cell systems over the past couple of years. However, core materials such as catalysts, proton exchange membranes, and gas diffusion layers heavily rely on imports. Only SPIC Hydrogen Energy has achieved complete self-sufficiency at the MEA level, placing it at the forefront domestically.

• (2) The ongoing support from local governments for infrastructure development is driving the evolution of hydrogen refueling stations towards “integrated fuel and hydrogen refueling.”

Hydrogen refueling stations, as the infrastructure providing hydrogen to fuel cell electric vehicles, serve as a crucial link connecting the upstream hydrogen production and downstream applications in the industry chain. They are an essential part of the FCEV industry. High-pressure hydrogen storage is currently adopted in the majority of hydrogen refueling stations in China, where hydrogen is mainly stored from various sources and compressed with compressors into high-pressure tanks, which is then dispensed to FCEVs using gas dispensers. In recent years, local governments have successively intensified policy support in the field of hydrogen infrastructure construction. This includes tax incentives, land usage policies, and financial support, all of which contribute significantly to expediting the commercial application of hydrogen energy. By the end of 2022, a total of 274 hydrogen refueling stations had been built nationwide (Fig. 7.3). In terms of new station additions, the focus in 2022 was on comprehensive energy service stations providing hydrogen, oil, electricity, and gas. The main consideration is the potential financial strain that independently operated hydrogen refueling stations could face. Choosing co-construction over standalone operation as hydrogen refueling stations can enhance the efficiency of station deployment and the ability to share costs. Looking at the deployment of hydrogen refueling station in China, it’s regional, primarily concentrated in economically developed provinces and municipalities like Guangdong, Shandong, Jiangsu, Shanghai, and Beijing.

Fig. 7.3

Source Hydrogen Industrial Technology Innovation Alliance of China (HITIA)

Construction and operation status of the top 10 provinces/municipalities’ hydrogen refueling stations in China by the end of 2022.

Currently, the expansion and construction of hydrogen refueling stations are hindered by high construction costs and bottleneck components, resulting in a high dependency on policies. In terms of the cost composition of hydrogen refueling stations, the equipment costs primarily include hydrogen storage equipment, hydrogenation equipment, compressors, pipelines, and safety devices. Among them, hydrogen storage equipment and hydrogenation equipment are the main components, accounting for the majority of the equipment costs. The equipment costs of hydrogen refueling stations vary depending on the region and construction scale. Due to the early stage of promotion for FCEVs, the production and supply scale of hydrogen refueling station equipment are relatively small, leading to higher costs.

7.2 Operation Characteristics of FCEVs in China

The National Monitoring and Management Platform is capable of monitoring the nationwide access and operational status of FCEVs. Taking into account data as of the end of 2022 from the National Monitoring and Management Platform, including the cumulative access volume, online rate, travel characteristics, and refueling features of FCEVs, this report presents a comprehensive analysis of the operational patterns of FCEVs in China. The findings and insights derived from this analysis serve as valuable reference and practical experience for the commercialization and wider implementation of FCEVs.

7.2.1 Access Characteristics of FCEVs in China

By the end of 2022, there were a total of 10,564 FCEVs accessed nationwide, predominantly consisting of logistics vehicles.

As of December 31, 2022, the National Monitoring and Management Platform for NEVs had cumulatively had 10,564 FCEVs accessed (Fig. 7.4). When broken down by type, there were 4810 FCEV-buses accessed, accounting for 45.5% of the total access volume; 5532 FCEV-Vehicle for special purposes, including logistics, engineering, and sanitation vehicles, comprising 52.4% of the total access volume; and 222 FCEV-passenger cars, making up 2.1% of the total access volume.

Fig. 7.4

Cumulative access volume and proportion of FCEVs in China (units, %)

• (1) Characteristics of Regional Concentration

The deployment of FCEVs is highly concentrated in specific regions, particularly in demonstration urban agglomerations.

As of December 31, 2022, the cumulative access volume of FCEVs in the top 10 provinces/municipalities amounted to 9730 units, making up 92.1% of the total nationwide (Fig. 7.5). Examining the promotion of FCEVs in various provinces/municipalities, it is evident that the promotion efforts are mainly concentrated in the demonstration urban agglomerations. Specifically, Guangdong Province, Shanghai, and Beijing have a cumulative access volume of 6478 FCEVs, constituting 61.3% of the total nationwide. The overall regional concentration of FCEV promotion shows a downward trend year by year (Fig. 7.6). In the past three years, there has been a decreasing trend in the annual promotion share of FCEVs among the top 3 provinces/municipalities, top 5 provinces/municipalities, and top 10 provinces/municipalities.

Fig. 7.5

Cumulative access volume and proportion of FCEVs for the Top 10 provinces/municipalities

Fig. 7.6

Changes in regional concentration of FCEV promotion and application over the years

A cumulative total of 4810 FCEV-buses have been accessed, with the promotion share hitting 95.0% across the top 10 provinces/municipalities.

As of December 31, 2022, there had been 4810 FCEV-buses accessed in the field, representing 45.5% of the total access volume of FCEVs on the National Monitoring and Management Platform (Fig. 7.7). The cumulative access of FCEV-buses in the top 10 provinces/municipalities amounted to 4431 units, responsible for 92.1% of the total nationwide. Regarding the distribution by province/municipality, Guangdong Province stood out for having the highest access volume of FCEV-buses. By December 31, 2022, Guangdong Province had had the highest access volume of FCEV-buses, with 1049 units, or 21.8% of the total nationwide, which is followed by Beijing, Shandong, Hebei, Shanghai, and Henan with an access volume of more than 300 units each.

Fig. 7.7

Cumulative access volume and proportion of FCEV-buses in the top 10 provinces and municipalities

The cumulative access volume of FCEV-Vehicle for special purposes has reached 5532 units, with the top 10 provinces/municipalities accounting for 95.1% of the overall promotion.

As of December 31, 2022, a total of 5532 FCEV-Vehicle for special purposes have been accessed nationwide, representing 52.4% of the total access volume of FCEVs on the National Monitoring and Management Platform (Fig. 7.8). The cumulative access volume among the top 10 provinces/municipalities was 5260 units, accounting for 95.1% of the total nationwide. Specifically, Shanghai and Guangdong ranked first and second, with a cumulative access volume of 1674 and 1593 units respectively, representing 30.3% and 28.8% of the national total, showcasing significant promotion effects.

Fig. 7.8

Cumulative access volume and proportion of FCEV-Vehicle for special purposes among the top 10 provinces/municipalities

The cumulative access volume of FCEVs among the top 10 cities has reached 7950 units, making up 75.3% of the national total.

As of December 31, 2022, the top 10 cities have cumulatively had 7950 FCEVs accessed, accounting for 75.3% of the nationwide promotion (Fig. 7.9). In these cities, Shanghai, Foshan, and Beijing had had over 1500 FCEVs accessed each, with each accounting for over 14% nationwide. The promotion structure of FCEVs in the top 10 cities exhibits significant diversity (Fig. 7.10). Zhangjiakou, Weifang, Foshan, Beijing, and Chengdu primarily promote FCEV-buses, while Shanghai, Shenzhen, Suzhou, Qingdao, and Guangzhou focus on FCEV-Vehicle for special purposes as the main promotion type.

Fig. 7.9

Cumulative access volume and proportion of FCEVs among the top 10 cities

Fig. 7.10

Structure of the cumulatively access of FCEVs among the top 10 cities

• (2) Market Concentration Characteristics

The FCEV market shows a high degree of concentration, with the top 10 companies collectively accessing 8540 FCEVs, representing over four-fifths of the national total.

Currently, there is a large number of OEMs involved in promoting FCEVs. As of 2022, a total of 56 enterprises nationwide had had their FCEVs accessed on the National Monitoring and Management Platform. From the perspective of market concentration in the industry, traditional automotive companies dominate the supply of FCEVs. As of December 31, 2022, the top 10 companies in the country had cumulatively had 8540 FCEVs accessed, accounting for 80.8% nationwide (Fig. 7.11). Among them, the top 3 companies, Zhongtong Bus, BAIC Foton, and Foshan Feichi, had cumulatively 1700, 1393, and 1392 FCEVs accessed respectively, with each accounting for over 13% nationwide. With the expansion of the hydrogen fuel cell market, whole OEMs possessing advantages in integrated technology, upstream costs, and order resources will see an increase in market share in the medium to long term.

Fig. 7.11

Cumulative access volume and proportion of FCEVs by Top 10 companies

When looking at the application scenarios for FCEV promotion among the top 10 enterprises (Fig. 7.12), traditional bus companies such as Foshan Feichi, BAIC Foton, Zhengzhou Yutong Bus, Xiamen Golden Dragon, and King Long mainly focus their promotion efforts in the bus sector. Meanwhile, Zhongtong Bus, Shanghai Shenlong, and Dongfeng Motor primarily promote applications in the logistics vehicle sector.

Fig. 7.12

Cumulative access volume of FCEVs by Top 10 companies—by application scenario

In both the bus and Vehicle for special purpose sectors, the FCEV market shows a high degree of concentration, with the top 3 companies collectively accounting for over one-third of the cumulative access volume.

In the bus sector, the top 3 companies, BAIC Foton, Foshan Feichi, and Xiamen Golden Dragon, have a cumulative access volume of 1865 FCEV-buses, accounting for 38.9% nationwide (Fig. 7.13); in the Vehicle for special purpose sector, the top 3 companies, Zhongtong Bus, Shanghai Shenlong, and Foshan Feichi, have had a total of 2882 FCEV-buses accessed, representing 52.1% nationwide (Fig. 7.14). Compared to the bus sector, the market concentration in the FCEV-Vehicle for special purpose sector is relatively higher. Zhongtong Bus, for instance, has had a cumulative total of 1343 FCEV-Vehicle for special purposes accessed, accounting for nearly one-fourth nationwide.

Fig. 7.13

Cumulative access volume and proportion of FCEVs by Top 10 companies—by sector (units, %)

Fig. 7.14

Average monthly online rates of FCEVs over the years

7.2.2 Characteristics of Online Rate in China

The average monthly online rate of FCEVs has experienced some fluctuations over the years, with a slight decrease in the average monthly online rate in 2022 compared to the previous year.

Based on Fig. 7.14, the annual average access volume rate of FCEVs has shown an upward trend since 2018, followed by a period of stability. Around 2021, influenced by the Winter Olympics, the average monthly online rate of FCEVs reached a peak, and the operational performance was relatively good. However, in 2022, the overall online rate of vehicles was not high, partly due to the high cost of hydrogen sources and hydrogen refueling station construction, which to some extent affected the operational performance of FCEVs.

When considering application scenarios, the online rate of FCEV-buses overall exceeds that of FCEV-Vehicle for special purposes.

FCEV-buses demonstrate good operational performance. When examining the average monthly online rates of various vehicle types over the years, it's evident that FCEV-buses have consistently maintained rates above 80%, indicating effective operational performance. Conversely, the average monthly online rate of FCEV-Vehicle for special purposes peaked at 69.3% in 2020 but steadily declined in 2021 and 2022. This highlights the need for further pilot demonstrations in the FCEV industry to consolidate experiences in core equipment, key component development, and hydrogen refueling infrastructure construction, thereby accelerating the growth of the hydrogen and fuel cell industries.

Looking at the monthly online rate curve of FCEVs (Fig. 7.15), it’s observed that in 2022, the monthly online rate of FCEVs remained lower than the same period of the previous year throughout the year, with online rates ranging from 46.3% to 68.9% each month. Throughout 2022, the average daily access volume of FCEVs per month remained predominantly around 2500 units. November saw the peak average daily access volume for the year, hitting 2873 units, while March recorded the lowest at 2152 units (Fig. 7.16).

Fig. 7.15

Monthly online rates of FCEVs over the years

Fig. 7.16

Average daily access volume of FCEVs per month in 2022

7.2.3 Operation Characteristics of FCEVs in China

• (1) Cumulative Mileage and Travel Duration

FCEVs have accumulated over 300 million kilometers in mileage in China, along with over 12.519 million hours in travel duration

As of December 31, 2022, the cumulative mileage of FCEVs had reached 307 million kilometers, with a total travel duration of 12.519 million hours. Among these figures, in 2022 alone, FCEVs traveled 109 million kilometers and accumulated 4.867 million hours of driving, accounting for 35.4% and 38.9% of the total cumulative mileage and travel duration of FCEVs, respectively.

When considering application scenarios, FCEV-buses and FCEV-special logistics vehicles take the lead. FCEV-buses have collectively traveled 210 million kilometers with a total travel duration of 9.066 million hours; FCEV-special logistics vehicles have covered 741.7 million kilometers with a travel duration of 2.215 million hours (Figs. 7.17 and 7.18).

Fig. 7.17

Distribution of the cumulative mileage of FCEVs in different application scenarios (10,000 km, %)

Fig. 7.18

Distribution of travel duration for FCEVs in different application scenarios (10,000 h, %)

Guangdong Province takes the lead in the scale of FCEV promotion in China, with favorable vehicle performance.

Considering the rankings of cumulative mileage and travel duration for FCEVs across various provinces/municipalities in China, it can be observed that as of the end of 2022, the top 10 provinces contributed to 95% of the nationwide figures, with a cumulative mileage of 291.49 million kilometers and a travel duration of 11.89 million hours. Notably, Guangdong Province exhibited a relatively favorable operational performance for FCEVs, with cumulative mileage and travel duration each exceeding one-third of the national total. Meanwhile, provinces/municipalities such as Shanghai and Beijing had a higher number of FCEV promotions. However, due to lower online rates in 2022, their overall mileage and travel duration were relatively lower (Fig. 7.19).

Fig. 7.19

Cumulative mileage and travel duration for FCEVs in the top 10 provinces/municipalities

• (2) Average daily mileage and travel duration per FCEV

The majority of daily mileage of a single vehicle falls within the range of 160 to 200km.

Examining the distribution of daily mileage per FCEV (Fig. 7.20), we observe a gradual shift towards higher mileage segments over the past three years. average daily mileage per FCEV was predominantly in the 0 to 40 km range in 2020. However, by 2021 and 2022, it gradually concentrated in the 160 to 200 km range. This trend reflects the continued strengthening of policies supporting the hydrogen and fuel cell industry, improvements in FCEV device technology and hydrogen refueling infrastructure, all of which have significantly enhanced vehicle operational efficiency.

Fig. 7.20

Distribution of daily mileage per FCEV over the years

The majority of FCEV-buses have a mileage concentration within the range of 120 to 240 km, while there is a need for continuous improvement in the operational efficiency of FCEV-Vehicle for special purposes.

In terms of application scenarios, for FCEV-buses in 2022, the daily mileage per vehicle was mainly concentrated within the 120–240 km range, accounting for 58.7% of the FCEVs (Fig. 7.21). For FCEV-Vehicle for special purposes, the daily mileage per vehicle was primarily concentrated in the 0–160 km range, representing 67.9% of the FCEVs. Compared to FCEV-buses, FCEV-Vehicle for special purposes have a significantly higher proportion of FCEVs with mileage below 200 km, indicating their primary role in short-distance urban transportation.

Fig. 7.21

Distribution of daily mileage per FCEV-bus and FCEV-Vehicle for special purpose in 2022

The distribution of daily travel duration per FCEV gradually transitions towards peak periods, indicating an increasing intensity of usage.

The distribution of daily travel duration per FCEV is relatively varied, with a presence observed across various time periods. In comparison to 2020, the proportion of FCEVs with a greater distribution in longer travel duration steadily increased in both 2021 and 2022 (Fig. 7.22). Notably, the proportion of FCEVs exceeding a daily travel duration of 10 h per vehicle reached 18.4% and 17.8% in the last two years, highlighting an increasing intensity of usage.

Fig. 7.22

Distribution of daily travel duration per FCEV from 2019 to 2022

In general, FCEV-buses have a higher proportion of vehicles in the high travel duration segment than FCEV-Vehicle for special purposes.

Overall, FCEV-buses have a higher proportion of vehicles with higher travel duration compared to FCEV-Vehicle for special purposes (Fig. 7.23). From various application perspectives, the daily travel duration of individual FCEV-buses is predominantly concentrated above 5 h, accounting for 71.8% of the FCEVs (higher than the 63.6% of FCEV-Vehicle for special purposes). These FCEV-buses are mainly utilized for urban transportation. In contrast, the daily travel duration of a single FCEV-Vehicle for special purpose is comparatively uniform, with an emphasis on short-distance logistics and delivery within urban areas. Additionally, 22.7% of FCEV-Vehicle for special purposes have a daily travel duration exceeding 10 h, suggesting instances of intercity transportation for certain FCEV-Vehicle for special purposes.

Fig. 7.23

Distribution of daily travel duration per FCEV-bus and FCEV-Vehicle for special purpose in 2022

7.3 Demonstration of Operational Characteristics of FCEVs in Demonstration Urban Agglomerations

This study focuses on the Beijing-Tianjin-Hebei Urban Agglomeration, the Shanghai Urban Agglomeration, the Guangdong Urban Agglomeration, the Hebei Urban Agglomeration, and the Henan Urban Agglomeration. It conducts a comparative analysis of the promotion, operation, and refueling characteristics of FCEVs in these five major demonstration urban agglomerations. The study summarizes the experiences and achievements of these demonstration urban agglomerations in the commercial promotion of FCEVs and provides valuable insights for their scale-up and application nationwide.

7.3.1 Promotion and Application Characteristics of FCEVs

This study focuses on the statistical scope of urban agglomerations as follows: the Beijing-Tianjin-Hebei Urban Agglomeration, which primarily examines the demonstration and application of FCEVs in Beijing and Tianjin; the Shanghai Urban Agglomeration, with a focus on the demonstration and application of FCEVs represented by Shanghai; the Guangdong Urban Agglomeration, which mainly analyzes the demonstration and application of FCEVs represented by Guangdong province; the Hebei Urban Agglomeration, which primarily investigates the demonstration and application of FCEVs represented by Hebei province; and the Henan Urban Agglomeration, which mainly studies the demonstration and application of FCEVs represented by Henan province.

The cumulative access volume of FCEVs in the Guangdong and Shanghai Urban Agglomerations is notably high, exceeding 2000 vehicles in both regions.

According to the comparison of the cumulative access volume of FCEVs among various demonstration urban agglomerations (Fig. 7.24), as of December 31, 2022, a total of 7521 FCEVs among the five major demonstration urban agglomerations had been accessed, accounting for 71.8% of the national total. Among the five major demonstration urban agglomerations, the Guangdong and Shanghai Urban Agglomerations rank first and second in terms of the cumulative access volume of FCEVs, with a cumulative access of 2652 and 2315 FCEVs respectively, mainly focused on FCEV-Vehicle for special purposes. The Beijing-Tianjin-Hebei, Hebei, and Henan Urban Agglomerations, on the other hand, primarily promote FCEV-passenger cars.

Fig. 7.24

Cumulative access of FCEVs across different demonstration urban agglomerations

With leading enterprises acting as catalysts, the demonstration urban agglomerations are driving the convergence of upstream and downstream sectors of the entire FCEV industry chain.

As shown in Fig. 7.25, the cumulative access of FCEV-passenger cars by the top five enterprises in each demonstration urban agglomeration demonstrates the significant role played by leading companies in driving the development and growth of the local FCEV industry chain. Notably, BAIC Foton, SAIC MAXUS, Foshan Feichi, and Yutong Bus have accounted for over 40% of the cumulative access of FCEV-passenger cars in their respective demonstration urban agglomerations, securing the top position in the rankings across all demonstration urban agglomerations.

Fig. 7.25

Cumulative access for the FCEV-passenger car sector by the top 5 enterprises across different demonstration urban agglomerations

In the FCEV-Vehicle for special purpose sector, BAIC Foton in the Beijing-Tianjin-Hebei Urban Agglomeration, Sunlong Bus in the Shanghai Urban Agglomeration, Zhongtong Bus in the Guangdong Urban Agglomeration, and Foshan Feichi in the Hebei Urban Agglomeration have cumulatively accounted for over 30% of the cumulative access of FCEV-Vehicle for special purposes in their respective demonstration urban agglomerations (Fig. 7.26). Among them, Zhongtong Bus holds the top position in the Guangdong Urban Agglomeration, with a cumulative access of 1110 vehicles, representing 69.7% of the cumulative access of FCEV-Vehicle for special purposes in the Guangdong Urban Agglomeration.

Fig. 7.26

Cumulative access for the FCEV-Vehicle for special purpose sector by the top 5 enterprises across different demonstration urban agglomerations

7.3.2 Operation Characteristics of FCEVs

• (1) Online Rate

The overall online rate for FCEV-buses in demonstration urban agglomerations is higher than that of FCEV-Vehicle for special purposes.

Comparing the online rates of FCEV-buses and FCEV-Vehicle for special purposes in demonstration urban agglomerations (Fig. 7.27), the overall online rate of FCEV-buses is higher than that of FCEV-Vehicle for special purposes. The year 2022 witnessed excellent performance in terms of the online rate for FCEV-buses in the Guangdong and Hebei Urban Agglomerations, where the proportion of average monthly access exceeded 80%. Conversely, the Shanghai Urban Agglomeration recorded a comparatively lower average monthly online rate for FCEV-buses. When it comes to FCEV-Vehicle for special purposes, the Beijing-Tianjin-Hebei Urban Agglomeration demonstrates a higher online rate for FCEV-Vehicle for special purposes compared to other demonstration urban agglomerations, reaching a access rate of 63.2%. Moreover, the online rate of FCEV-Vehicle for special purposes in Shanghai slightly surpasses that of FCEV-buses.

Fig. 7.27

Average monthly online rate of FCEVs in various demonstration urban agglomerations in 2022

By examining the changes in monthly online rates of FCEVs (Figs. 7.28 and 7.29), it becomes apparent that the average monthly online rates for FCEV-buses in the Beijing-Tianjin-Hebei Urban Agglomeration, Guangdong Urban Agglomeration, Hebei Urban Agglomeration, and Henan Urban Agglomeration demonstrate a relatively stable distribution. Moreover, the online rates in the first half of the year are slightly higher than those in the second half. Starting from February 2022, the online rate in the Shanghai Urban Agglomeration consistently remained at a lower level throughout the year. On the other hand, when focusing on the FCEV-Vehicle for special purpose sector, the monthly online rate for the Beijing-Tianjin-Hebei Urban Agglomeration displayed a relatively stable pattern, while the Hebei Urban Agglomeration witnessed a significant surge in the monthly online rate towards the end of the year. In December, the online rate reached its highest level at 84.3% throughout the year.

Fig. 7.28

Monthly online rates of FCEV-buses in various demonstration urban agglomerations in 2022

Fig. 7.29

Monthly online rates of FCEV-Vehicle for special purposes in various demonstration urban agglomerations in 2022

• (2) Cumulative mileage and travel duration of FCEVs

The cumulative mileage and travel duration of FCEV-buses in demonstration urban agglomerations are significantly higher compared to those of FCEV-Vehicle for special purposes.

As of December 31, 2022, the cumulative mileage of FCEVs in various demonstration urban agglomerations had reached a total of 210 million kilometers, with a total travel duration of 8.443 million hours. Specifically, the Guangdong Urban Agglomeration had shown impressive performance, accumulating a mileage of 110 million kilometers and a travel duration of 3.871 million hours (Fig. 7.30).

Fig. 7.30

Cumulative mileage and travel duration of FCEVs across various demonstration urban agglomerations

There is a significant variation in the cumulative mileage and travel duration of different FCEV types across various demonstration urban agglomerations, primarily due to differences in vehicle promotion structures and online rates within each demonstration urban agglomeration. In the bus field, the Guangdong Urban Agglomeration takes the lead in terms of cumulative mileage and travel duration of FCEV-buses among other demonstration urban agglomerations. In the Vehicle for special purpose domain, both the Guangdong and Shanghai Urban Agglomerations exhibit commendable performance. While evaluating the demonstration results of different FCEV types in diverse demonstration urban agglomerations, it is apparent that the cumulative mileage and travel duration of FCEV-buses in the Guangdong Urban Agglomeration, Hebei Urban Agglomeration, Henan Urban Agglomeration, and Beijing-Tianjin-Hebei Urban Agglomeration exhibit a noticeable advantage over those of FCEV-Vehicle for special purposes.

• (3) Average daily mileage and travel duration of FCEVs

Generally speaking, FCEVs achieve higher average daily mileage compared to BEVs. Nevertheless, there is room for further development to fully exploit the long-range advantage of FCEVs.

In the realm of buses (Fig. 7.31), both the Shanghai Urban Agglomeration and the Guangdong Urban Agglomeration demonstrate FCEV-buses with a per-vehicle average daily mileage exceeding 180 km, significantly surpassing the average daily mileage of BEVs. The operational characteristics of FCEV-buses and BEVs in other demonstration urban agglomerations, such as the Beijing-Tianjin-Hebei Urban Agglomeration, Henan Urban Agglomeration, and Hebei Urban Agglomeration, are largely consistent. As for Vehicle for special purposes (Fig. 7.32), the Beijing-Tianjin-Hebei Urban Agglomeration, Shanghai Urban Agglomeration, and Henan Urban Agglomeration showcased FCEV-Vehicle for special purposes with an average daily mileage of approximately 150 km in 2022, significantly surpassing the average daily mileage of BEV-Vehicle for special purposes.

Fig. 7.31

Comparison of daily travel characteristics between FCEV-buses and BEV-buses in demonstration urban agglomerations

Fig. 7.32

Comparison of daily travel characteristics between FCEV-Vehicle for special purposes and BEV-Vehicle for special purposes in demonstration urban agglomerations

FCEVs offer a solution to the limitations in operational efficiency, charging duration, range degradation, and safety performance observed in BEV-commercial vehicles. They represent an important avenue in the pursuit of environmentally-friendly long-distance freight transport. In comparing the travel characteristics of FCEVs and BEVs, it is evident that the long-range advantage of FCEVs in China still has room for further development.

The daily mileage of FCEV-buses is mainly concentrated in the range of approximately 120-240 km, while the daily mileage of FCEV-Vehicle for special purposes is primarily focused within 200 km.

Regarding buses, the daily mileage of FCEV-buses is mainly concentrated within the 120–240 km range (Fig. 7.33). In both the Shanghai Urban Agglomeration and Beijing-Tianjin-Hebei Urban Agglomeration, there is a certain number of FCEV-buses with a high daily mileage exceeding 280 km. In the realm of FCEV-Vehicle for special purposes, the distribution of daily mileage in all demonstrative urban agglomerations is centered around the 0-200 km range, with a proportion exceeding 70% (Fig. 7.34).

Fig. 7.33

Distribution of daily mileage of FCEV-buses in demonstrative urban agglomerations in 2022

Fig. 7.34

Distribution of daily mileage of FCEV-Vehicle for special purposes in demonstrative urban agglomerations in 2022

The distribution of daily travel duration for FCEV-buses is relatively even, while for FCEV-Vehicle for special purposes, a small proportion exhibit longer daily travel duration.

The distribution of daily travel durations for individual FCEV-buses is depicted as relatively uniform across various demonstration urban agglomerations (Fig. 7.35). Noteworthy is the higher proportion of FCEV-buses with extended travel durations in the Henan Urban Agglomeration, where 31.3% of FCEV-bus travel for over 10 h daily. As for FCEV-Vehicle for special purposes (Fig. 7.36), there are significant differences in the distribution of daily travel durations across various demonstration urban agglomerations. average daily travel durations per FCEV-Vehicle for special purpose exhibit a relatively even distribution in the Shanghai and Guangdong Urban Agglomerations. In contrast, within the Beijing-Tianjin-Hebei and Hebei Urban Agglomerations, the distribution of daily travel durations for certain FCEV-Vehicle for special purposes is centered around longer duration segments.

Fig. 7.35

Distribution of daily travel durations for FCEV-buses across demonstration urban agglomerations in 2022

Fig. 7.36

Distribution of daily travel durations for FCEV-Vehicle for special purposes across demonstration urban agglomerations in 2022

• (4) Mileage between two hydrogen refueling cycles

The mileage between two hydrogen refueling cycles for FCEVs is markedly higher compared to BEVs.

In 2022, as shown in Fig. 7.37 and Fig. 7.38, the average mileage between two hydrogen refueling cycles for FCEV-buses and FCEV-Vehicle for special purposes in demonstration urban agglomerations was significantly higher compared to BEV models. Within the bus segment, the mileage between two hydrogen refueling cycles shows a year-on-year growth trend, reaching 566 km in 2022 for FCEV-buses in the Henan urban agglomeration. In the Vehicle for special purpose sector, the mileage between two hydrogen refueling cycles for FCEV-Vehicle for special purposes is around 200 km. In 2022, the mileage between two hydrogen refueling cycles for FCEV-Vehicle for special purposes in the Shanghai and Hebei Urban Agglomerations slightly increased.

Fig. 7.37

Mileage between two hydrogen refueling cycles for different types of buses in demonstration urban agglomerations

Fig. 7.38

Mileage between two hydrogen refueling cycles for different types of Vehicle for special purposes in demonstration urban agglomerations

7.3.3 Hydrogen Refueling Characteristics of FCEVs

• (1) Distribution of Daily Hydrogen Refueling Frequency per FCEV

The analysis of the distribution of daily hydrogen refueling frequency per FCEV over the past two years reveals that in 2022, the proportion of FCEVs in demonstration urban agglomerations with less than one refueling per day increased. When it comes to the bus sector, there was a significant increase in the proportion of FCEV-buses with less than one daily refueling in each demonstration urban agglomeration to over 95% in 2022, markedly higher than the 2021 level (Fig. 7.39); a similar trend is observed in the Vehicle for special purpose sector, where the proportion of FCEV-Vehicle for special purposes with less than one daily refueling in 2022 showed a relative expansion compared to 2021 (Fig. 7.40). One of the main reasons for this phenomenon can be attributed to several factors. On one hand, the increase in hydrogen capacity per vehicle or the expansion of hydrogen station construction and operation may lead to a decrease in the daily refueling frequency of FCEV-buses. On the other hand, local hydrogen supply systems may suffer from issues such as a lack of domestic hydrogen sources and low efficiency in hydrogen storage and transportation, causing the supply capacity of hydrogen to lag behind the pace of fuel cell adoption and to some extent impacting the operational efficiency of FCEVs.

Fig. 7.39

Distribution of hydrogen refueling frequency per FCEV-bus in demonstration urban agglomerations over the years

Fig. 7.40

Distribution of hydrogen refueling frequency per FCEV-Vehicle for special purpose in demonstration urban agglomerations over the years

• (2) Average hydrogen refueling duration of FCEV

In 2022, the average hydrogen refueling duration for various FCEV types in each demonstration urban agglomeration was primarily concentrated around 15 min, as depicted in Fig. 7.41. The Hebei Urban Agglomeration exhibits higher overall average hydrogen refueling durations for FCEV-buses and FCEV-Vehicle for special purposes, with single refueling durations of 17.3 min and 15.8 min, respectively. Compared to BEVs, FCEVs boast the advantages of shorter refueling time and longer driving range.

Fig. 7.41

Average hydrogen refueling duration for FCEVs across demonstration urban agglomerations in 2022

7.4 Summary

Drawing on the promotion and industry demonstration achievements of FCEVs in demonstration urban agglomerations in China, this chapter summarizes the operational and refueling characteristics of FCEVs, leading to the following main conclusions:

As China has seen a deployment scale of over 10 million FCEV-commercial vehicles, demonstration urban agglomerations play a significant leadership role in promoting these FCEVs nationwide. Thanks to the policy guidance from national ministries and commissions as well as local governments, the promotion of FCEVs in China has yielded remarkable results. By the end of 2022, a total of 10,564 FCEVs had accessed the National Monitoring and Management Platform, with the vehicle holding steadily growing. Spearheaded by the “3 + 2” demonstration urban agglomerations, the cumulative access volume of FCEVs in demonstration regions has reached 7521 units, making up 71.8% of the national total. FCEVs have expanded from a single application scenario to multiple application scenarios. With the gradual enrichment of models for buses and Vehicle for special purposes, FCEVs have achieved comprehensive coverage in the fields of buses and Vehicle for special purposes; in the realm of buses, they have covered public transportation, highways, commuting, and tourism. In the Vehicle for special purpose sector, there is coverage in logistics, engineering, and sanitation fields; in the passenger car sector, there is also a certain level of promotion and application in government affairs and leasing fields.

Local governments need to combine their local resource endowments and advantage in industrial foundations to promote vehicle demonstrations and cultivate industries, ultimately establishing regional hubs for FCEV development. The hydrogen energy and fuel cell industry chain is long, with numerous stakeholders from upstream to downstream, making it a popular industry for inter-regional competition. Yet, an analysis of early-stage promotion policies by local governments suggests that certain cities share similar promotion objectives to some extent. Hence, in terms of national-level planning guidance, demonstration applications are conducted through the “3 + 2” FCEV demonstration agglomerations and the tracking of key projects. The transportation sector is chosen as a breakthrough point for the downstream application market development of hydrogen energy and fuel cells, with subsequent expansion into sectors such as energy storage, industry, and construction. One aspect entails breaking down administrative regional limitations and advocating for cross-regional industrial collaboration. Simultaneously, it is important to fully leverage local advantages in industries and resource endowments, promoting rapid breakthroughs in critical technologies and accelerating the commercialization efforts in key sectors.

As the demonstration urban agglomerations following the “3 + 2” model have been put into practice for a year, accompanied by the gradual improvement of the national “dual carbon” strategy and the upstream and downstream sectors in the industry chain, the FCEV market is poised to enter a period of stable and linear growth. By seizing the opportunity of the convening of Beijing 2022 Winter Olympics and guided by the three-year action plan to fight air pollution, also called the Blue Sky Protection Campaign, the Beijing-Tianjin-Hebei Urban Agglomeration and the Hebei Urban Agglomeration have achieved remarkable results in the promotion of FCEV-buses. This success is attributed to the close collaboration among industry, academia, and research institutions, facilitated by the local industrial foundation and research resources. With Shanghai serving as the anchor city, the Shanghai Urban Agglomeration extends its influence to surrounding developed cities like Suzhou and Nantong. By leveraging the dynamism of companies in the entire FCEV industry chain, it has the potential to become a region that rapidly matures the industry chain in China. The Guangdong Urban Agglomeration has significantly outperformed other demonstration urban agglomerations in terms of the number of FCEVs deployed. As of the end of 2022, it had had a total of 2652 FCEVs accessed, making it the largest in scale and with the longest operational mileage among all the demonstration urban agglomerations in China. The Henan Urban Agglomeration hinges on leading enterprise Yutong Bus to drive the collaboration of key component companies in the upstream and downstream sectors of the industry chain. With a focus on the demonstration and operation of FCEV-buses, the initial formation of the hydrogen energy and FCEV industry landscape is taking shape.

With a market-oriented approach, there is a drive to expand the demonstration application scenarios for FCEVs and accelerate the exploration of suitable commercial application models. From the NEV operating characteristics observed on the National Monitoring and Management Platform, FCEVs demonstrate significant advantages over BEVs in terms of mileage and hydrogen refueling efficiency. Relative to BEVs, FCEVs offer advantages such as shorter refueling time, extended driving range, and better adaptability in low-temperature environments. Under ideal conditions, hydrogen fuel cell technology is better suited for medium to long-distance or heavy-duty trucking, helping to address the drawbacks of high-capacity BEV-heavy-duty trucks in terms of payload and the emissions of pollutants associated with diesel heavy-duty trucks. However, due to the current limitations of hydrogen storage technology and the need for further development of hydrogen refueling infrastructure and other supporting facilities, the use of FCEV-Vehicle for special purposes in the long-distance transportation sector is still in need of expansion. In this regard, they complement BEVs in certain applications. Additionally, through demonstration applications, efforts are being made to drive the continuous improvement of the industrial chain and the enhancement of standards and evaluation systems. The goal is to establish a robust industry improvement system that promotes the sound development of the sector.

The level of perfection in the hydrogen supply system and the reduction of costs within the industry chain are crucial to achieving the promotion goals for FCEVs by the end of the “14th Five-Year Plan” period. According to the National Monitoring and Management Platform, in 2022, the online rate of FCEVs in certain regions was relatively low, partly due to the weaker capacity of hydrogen supply sources. Using Foshan as a case study, the limited availability of hydrogen sources is a significant challenge for the development of the hydrogen energy industry in the city. Foshan heavily depends on externally transported hydrogen due to a shortage of local sources. Moreover, the sluggish approval process for hydrogen refueling stations places restrictions on the supply of hydrogen for FCEVs, thereby impacting their operational capabilities to some extent. Moreover, regarding key components, while China has achieved initial self-supply capabilities in core materials for fuel cells in key areas, the slow operation of the industry’s “technology upgrade - large-scale application - technology upgrade” cycle system is primarily due to the limited scale of FCEV promotion during the initial stage of the industry and the weak ability to distribute costs. Over the next period, expediting the construction of hydrogen refueling station systems, advancing the breakthroughs of key technology in hydrogen storage systems, and establishing an independent and controllable supply chain will contribute to the promotion of commercialization for FCEVs.