Cruising at 160 kilometers per hour, the train achieves an average energy consumption of just 5 kilowatt-hours per kilometer, and its maximum range exceeds 1,000 kilometers. Recently, China's first hydrogen-powered suburban train completed a successful test run, marking a new breakthrough in the application of hydrogen energy in the field of rail transportation.
Currently, China's hydrogen energy industry is picking up speed and moving into a fast lane of development. Likewise, countries and regions such as the United States, the European Union, Japan, South Korea, and India are also stepping up their efforts in the hydrogen energy industrial layout. According to the Hydrogen Council's projections, the hydrogen energy sector is poised to surpass a valuation of 2.5 trillion USD by 2050, potentially fulfilling approximately 20 percent of the global energy requirements.
Amidst the burgeoning hydrogen wave, Sichuan, a frontrunner in clean energy, how will it forge an upper hand in the development of the hydrogen energy industry?
On April 16, the Provincial Work Conference on Studying Further Promoting the Development of the Full Industrial Chain of Green Hydrogen and Its Promotion and Application was held. From the list of participants, this meeting is a high-level gathering that brings together government, industry, academia, research and application sectors to advance hydrogen energy development in Sichuan holistically. Moreover, the agenda indicates a significant arrangement by the province towards the full industrial chain development, covering production, storage, transportation, refueling and application. Behind the strong signal for development, what strategies does Sichuan Province have in its pipeline?
Exploring the "family fortune"
Sichuan's full industrial chain layout is a clear strength, bolstered by its exceptional endowments in hydroelectric, wind and solar power.
After over a decade of focused development, Sichuan has gathered more than 100 research institutes and enterprises involved in the upstream and downstream sectors of the hydrogen energy industry, establishing a full industrial chain encompassing production, storage, transportation, refueling and application.
"The full industrial chain layout stands as a significant advantage in Sichuan's pursuit of hydrogen energy development." Conference participants noted that after over a decade of accumulation, Sichuan's hydrogen energy industry had reached a pivotal point for significant strides and expressed confidence in Sichuan's readiness and capability to embrace the new racetrack and accelerate the cultivation of new quality productive forces in the hydrogen sector.
Sichuan Province harbors State-owned enterprises with a full industrial chain layout, nurtures leading companies in diverse subsectors, and has also drawn numerous prominent domestic enterprises to settle within the province. This development has initially fostered an ecosystem that integrates technology research and development, equipment manufacturing, inspection and testing, and demonstration applications.
In the realm of hydrogen production, Sichuan's primary source of hydrogen is industrial by-product hydrogen, boasting an annual output surpassing 180,000 tons. Meanwhile, the province's rich endowment in hydro, wind and solar resources underpins the substantial potential for renewable energy-derived hydrogen production (i.e., green hydrogen). Sichuan has established a diversified hydrogen source landscape that is predominantly anchored in by-product hydrogen and concurrently with the burgeoning development of green hydrogen. The province's hydrogen production scale is the fourth largest nationwide.
In the equipment sector, Sichuan possesses a robust technical and equipment foundation spanning the manufacturing, storage, refueling and transportation stages of the hydrogen industry. The province has sequentially overcome critical bottleneck issues, such as seawater-based hydrogen production, hydrogenation guns, air compressors, and high-pressure hydrogen storage tanks. The market share of complete sets of hydrogen refueling equipment produced in Sichuan has surpassed 20 percent.
In the realm of application, Sichuan has taken the lead in establishing the Chengdu-Chongqing Hydrogen Corridor, and is continuously broadening the scope of hydrogen energy usage in sectors like distributed energy resources and flight vehicles. Across the province, ten cities (prefectures) have initiated hydrogen vehicle demonstration projects, and the province has set up the first public transit demonstration line and the first hydrogen refueling station in Western China, among other developments. Hydrogen energy vehicles made in Chengdu have also been present at events such as the Beijing 2022 Winter Olympics and the Chengdu 2021 FISU World University Games.
In addition, a relevant leading official from the Provincial Department of Science and Technology introduced that Sichuan has a solid foundation and favorable conditions for green hydrogen technology innovation, having established ten national and provincial key laboratories in the field of hydrogen energy and possessing 30 key innovation teams. The high-power hydrogen fuel cell system installed in China's first hydrogen energy-powered suburban train is the fruit of the research team at Southwest Jiaotong University.
Strategizing for the future
Implementing extraordinary and targeted support, focusing on application-oriented strategies to gain the upper hand in the industry
"Sichuan's hydrogen energy sector is built on a solid foundation, boasts a deep well of core technology, and offers expansive application and market opportunities, which give the province a first-mover advantage in industrial growth." Relevant persons in charge from participating companies believed that Sichuan, armed with its advanced hydrogen capabilities, is poised for a bright future. A relevant person in charge from Dongfang Electric Corporation recommended that Sichuan should further intensify its focus on application scenarios to drive industrial growth, expedite the development of the hydrogen industry cluster, advance the construction of hydrogen corridors that embody Sichuan's unique attributes, so as to secure the upper hand in the hydrogen energy sector's advancement.
The conference conveyed a message: Sichuan will implement extraordinary and targeted support for the hydrogen energy sector, adopt an application-oriented approach, leverage the province's resource strengths, address bottlenecks and obstacles, and propel the high-quality development of the entire green hydrogen industrial chain.
Transportation is recognized as the "vanguard sector" for the application of hydrogen energy. Presently, in the province, hydrogen energy is primarily utilized in urban public transit buses and heavy-duty freight trucks, with the overall application still at a relatively modest scale. A relevant leading official from the Provincial Department of Transport stated that in the upcoming steps, proactive measures will be taken to explore policy options, intensify guidance, investigate the feasibility of waiving highway tolls for hydrogen-powered vehicles, encourage city governments to lift traffic restrictions for hydrogen energy trucks in urban areas, and concurrently motivate cities meeting certain criteria to advance the renewal of hydrogen energy equipment across their regions.
In response to the high costs associated with hydrogen energy use and the scarcity of infrastructure such as hydrogen refueling stations, a relevant leading official from the Provincial Commission of Development and Reform stated that the province's significant advantage lies in its vast untapped potential in green electricity, notably in hydro, wind and solar power, which can be harnessed for local power generation, facilitating the production of green hydrogen. In the next step, Sichuan intends to explore the feasibility of off-grid water electrolysis for hydrogen production. Additionally, the province plans to synergistically progress the establishment of both hydrogen refueling stations and electric vehicle charging infrastructure, extending financial incentives for hydrogen refueling stations that are analogous to those offered for electric charging stations. Besides governmental efforts, businesses are also taking proactive initiatives to reduce costs. The Sinopec Sichuan Oil Products Company stated it would collaborate with in-province chemical industries to purify by-product hydrogen, thereby lowering the costs associated with hydrogen production and logistics.
A full industrial chain is a distinctive strength of Sichuan's hydrogen energy industry. Looking ahead, Sichuan will continue to reinforce this advantage and swiftly build a cluster for hydrogen energy equipment sector. A relevant leading official from the Provincial Department of Economy and Information stated that the future initiatives include making breakthroughs in key and core technologies, supporting the development of high-end hydrogen energy equipment, strengthening, consolidating and extending industrial chains, and intensifying efforts to improve the performance levels of basic materials, key components and high-end equipment, aiming to accelerate the formation of industrial chains and create momentum for growth.
