China is the world's largest market for new-energy vehicles, which include battery electric vehicles as well as plug-in hybrid and hydrogen fuel cell vehicles (HFCVs). It currently has a fleet of more than 7,000 HFCVs, such as cargo vans and trucks for commercial use, accounting for over half of the world's total. Moreover, over 1,000 hydrogen filling stations are expected to be built by 2030.

Despite a late start, China has made rapid progress in hydrogen development, mastering core hydrogen fuel cell technologies. Last year, new policies were rolled out to improve the HFCV industry's supply chains and technologies.

However, hydrogen is highly explosive and notoriously difficult to store or transport, which has hampered the development of the hydrogen energy industry. Besides, while a hydrogen fuel cell generates carbon-free power, producing it is energy-intensive and some parts of the process create carbon emissions. In addition, battery performance is a difficult point for carmakers.

The hydrogen power challenge requires local governments and companies to build a more mature supply chain and business model for the industry. They need to prove their joint projects can lower the price of hydrogen fuel, increase the number of charging stations, enlarge HFCV fleets and improve related technologies.

This is an edited excerpt of an article originally published in China Newsweek on March 1 

(Print Edition Title: Hydrogen Vehicles)