Momentum forecast at hydrogen fuel event

The fuel cell vehicle sector and the hydrogen industry as a whole are expected to reach a turning point in China, as companies and the authorities have been revving up efforts to make progress in both the technology and infrastructure.

The International Hydrogen and Fuel Cell Vehicle Congress and Exhibition 2023 held from Wednesday to Friday in Shanghai attracted more than 300 Chinese and international companies to exhibit their products and technological solutions.

FTXT Energy Technology, a leading Chinese company specializing in R&D, production and sales of hydrogen fuel cell products, showcased a number of cutting-edge products. They included a 255-kilowatt fuel cell engine for commercial vehicles and a 300-kW graphite stack.

The company's second-generation membrane electrode assembly made its debut at the event, which was organized by the China Society of Automotive Engineers and the International Hydrogen Fuel Cell Association.

FTXT said the product has reached a globally advanced level. Other leading products from the company, including hydrogen tanks and valves, were showcased at the event too.

Earlier this year, the company inked deals with companies including HBIS Industrial Technology to deliver up to 650 fuel cell systems.

Gong Mingming, head of public relations at FTXT, said deliveries are speeding up from the second half of this year.

Yang Kai, vice-president of United Fuel Cell System R&D (Beijing), said the fuel cell vehicle sector has started to pick up speed. He said that the market is expected to reach 100,000 units a year by 2025.

Established in 2020, United Fuel Cell System R&D (Beijing) is a joint venture by six major companies in the sector, including Toyota, FAW, Dongfeng as well as SinoHytec.

Yang said construction on the joint venture's phase I project will be finished by the end of this year and production will start in April 2024.

Yang said he is optimistic about the fuel cell market, especially in the commercial vehicle sector. He has seen improvements over the past few years in terms of favorable policies, laws and regulations, as well as the number of hydrogen filling stations.

He said the sector expects to see accelerated growth when more breakthroughs are made in relevant technologies and hydrogen prices drop.

"Major State-owned companies like Sinopec and CNPC are making forays into the hydrogen station sector, which is a great boon to the sector," said Yang.

CIMC Enric, which specializes in manufacturing hydrogen-related products including storage tanks, has seen the growing popularity of its products in China and overseas markets.

In 2022, the company's hydrogen-related revenue reached 440 million yuan ($61 million), up 151.4 percent year-on-year.

Ji Haohua, vice-director of strategic marketing at CIMC Enric Hydrogen Business Center, said the figure is expected to reach 700 million yuan this year and soar to 2.5 billion yuan by 2025.

"The hydrogen business is going to continue its high-speed growth in the coming years," said Ji.