Hydrogen vehicles becoming a new focus in renewable energy vehicles
July 9, 2019 Category China News Round-up, Weekly
Analysts say it is a good time for investors to start thinking about the hydrogen vehicle sector. The science behind the technology is easy to grasp: hydrogen gas stored in a vehicle is converted by fuel cells into electricity. The vehicle is powered with essentially no emissions, and it can travel far longer distances than electric vehicles can without needing to refuel, underscoring why the sector is getting so much buzz. But cost – for the vehicles, the fuel and the network of refueling stations – is among challenges to making them commercially viable on a large scale. “In China, there are a lot of companies putting resources in this industry,” said Toliver Ma, Auto Analyst at securities company Guotai Junan Securities in Hong Kong. “There are still technological obstacles to overcome to scale the usage. It will be a while.”
Globally, Japan’s Toyota and Honda, and South Korea’s Hyundai are leaders, with hydrogen-powered models. Amazon is among U.S. companies using fuel-cell powered forklifts, and many U.S. states are experimenting with hydrogen-powered buses. In China, Great Wall Motor is making hydrogen energy and fuel cell vehicles a focus, investing more than CNY1 billion into research and development (R&D). FAW, the country’s oldest carmaker, announced plans earlier this year to mass-produce fuel-cell cars as part of its luxury Hongqi brand. Chinese vehicle maker BYD has partnered with U.S. Hybrid to produce shuttle buses in Hawaii, which aims to be totally powered by renewables by 2045. Yutong Bus has been building fuel-cell buses, while Beiqi Motor signed an agreement with hydrogen fuel-cell engine manufacturer Beijing SinoHytec and electricity generation company SPIC Hydrogen Energy Development to produce 1,000 fuel-cell buses and build hydrogen stations by 2022.
Wan Gang, called China’s father of electric vehicles and a Vice Chairman of the Chinese People’s Political Consultative Conference (CPPCC), is enthusiastic about the future of hydrogen vehicles. He told Bloomberg that the government will commit resources to its development and extolling its benefits, especially for buses in China, where there are five times more long-distances buses for every inner-city one. At the 2019 World New Energy Vehicle Congress in Hainan earlier this month, presided by Wang Gang, the heads of BYD, SAIC Motor, First Automobile Work Group (FAW) and Beijing Automotive Group (BAIC) all pledged their support for hydrogen.
By 2030, Beijing plans to have one million fuel-cell vehicles on the road, ahead of the U.S.’ target of 800,000. More than USD17 billion worth of announced investments will flow into the industry in China through 2023, according Bloomberg New Energy Finance. China has 15 hydrogen refueling stations, and 20 are under construction. It aims to have more than 1,000 by 2030, according to the International Hydrogen Fuel-Cell Association, as reported by the South China Morning Post.
Companies involved in hydrogen cars include BYD and Geely Automobile, while Jiangsu Huachang Chemical is making hydrogen pumping stations, and Shanghai Tongji Science & Technology Industrial and Lanzhou Great Wall Electrical invested in the fuel-cell vehicle industry.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world