China’s new framework to boost hydrogen fuel cell vehicles

The Ministry of Finance of the People’s Republic of China has issued a notice regarding the launch of fuel cell vehicle demonstration applications. The advice on new policies to support hydrogen fuel cell vehicles focuses on improving the country’s supply chain and technology.

Since 2009, the Chinese central government has supported the development of fuel cell vehicles by providing purchase subsidies to consumers. As of July 2020, China had promoted more than 7,200 fuel cell vehicles and built around 80 hydrogen refueling stations, according to China’s National Energy Administration.

The notice is a joint effort of the Ministry of Finance, Ministry of Industry and Information Technology, Ministry of Science and Technology, Development and Reform Commission and Administration national energy.

These five departments will adjust the subsidy policy for the purchase of fuel cell vehicles and reward eligible urban groups for the industrialization of key basic technologies.

The demonstration period is set at four years.

The notice stated: “A healthy industrial chain requires reasonable allocation of resources and elements, effective coordination of technology, market and policies, and can be formed through the long-term joint efforts of all parties. The five departments will select eligible city clusters, rely on outstanding companies in the fuel cell vehicle industry chain to realize demonstration applications, promote the sustainable and healthy development of the industry, and build a complete industrial chain.

The general idea is to support breakthroughs in key basic technologies and industrial applications of fuel cell vehicles.

The cities that fall under the demonstration cluster would focus on technological innovation, identify application scenarios and build a complete industrial supply chain. They should build a supply chain for the fuel cell vehicle industry and promote technological research and development and industrialization of all links in the chain.

The demonstration city clusters should identify the lead city, clarify the division of labor, strengthen communication and coordinate the demonstrations.

The policy also aims to promote the formation and development of a unified domestic market and accelerate the formation of a domestic fuel cell vehicle industry. This would include creating and promoting demonstration city clusters, supporting businesses to use the unified national market to become bigger and stronger, and accelerating the product economy.

Another objective is to build on the national industrial chain to accelerate the industrial application of key components. Through demonstration policies, companies that support complete vehicles and power systems would be encouraged to rely on the domestic industry chain to actively use key components that achieve breakthroughs. Cities with outstanding companies in the industrial chain can participate in multiple city clusters to prevent foreign companies from investing.

The policy is likely to strengthen vehicle management through information technology and create a system of test and evaluation standards and a safety guarantee basis for industrial development.

The country will take a “post-grant” approach and approve and allocate the award funds based on the results of the acceptance review and performance review.

The notice added that by November 15, 2020, the city’s provincial finance, industry and information technology, science and technology, development and reform and energy authorities leader should submit two application documents and demonstration application implementation plans to the five departments. The five departments will rely on third-party institutions and expert committees to monitor and guide the demonstration work throughout the process and implement monitoring and milestone assessments.

Earlier this year, the Ministry of Finance of the People’s Republic of China issued a notice on ways to promote financial subsidies for new electric vehicles. The ministry said it gave the order to support the new electric vehicle industry. He highlighted a few areas of subsidy policy for new electric vehicles that need to be addressed.

Recently, Mercom reported that the Chinese companies BYD Company Ltd and Toyota Motor Corporation announced that the operation of their new company will be launched in 2020. The name of the new company will be called BYD Toyota EV Technology Co. Ltd. The company will be involved in the design and development of battery electric vehicles and their related platforms and parts. The participation in the capital of the two companies is 50% each.

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