China is set to make a major push into hydrogen in a move that could significantly accelerate the global development of the industry, according to a survey of energy professionals by Norway-based assurance and risk management company DNV.

“In the next one-to-two years, the introduction of hydrogen-related policies will signal the real commencement of hydrogen more broadly in China,” says Yuan Zhengang, director of the New Energy Research Center of the CPPEI, a think tank tied to Chinese NOC CNPC.

“China has incomparable advantages in driving the industry forward due to its large-scale population and urban agglomeration network” Zhengang, CPPEI

“This could include, for example, a top-level strategy at national level, plus industrial development planning, medium-to-long-term planning and designating hydrogen as a strategic energy.”

The survey was carried out for a DNV report called Rising to the challenge of a Hydrogen Economy.

The Chinese government enacted new policies last year to incentivise hydrogen fuel-cell vehicle adoption in several cities. The targets for these cities include lowering the cost of hydrogen, improving technologies and increasing the network of hydrogen refuelling stations.

“In terms of the public transportation sector or commercial vehicle market, China has incomparable advantages in driving the industry forward due to its large-scale population and urban agglomeration network when compared to many other countries,” says Yuan.

Rising optimism

DNV’s global survey of  1,100 senior energy industry professionals showed a rising level of optimism around the growth of the hydrogen economy but also highlighted concerns around the infrastructure and costs hurdles that need to be overcome.

“Three-quarters of energy professionals say the outlook for a hydrogen economy improved significantly in the past 12 months, while two-thirds expect this will continue in the next 12 months,” the report says.

However, 71pc of those surveyed believe current hydrogen ambitions tend to underestimate the practical limitations and barriers, while only 43pc believe the majority of national and organisational hydrogen goals are realistic.

71pc – Survey respondents say current hydrogen ambitions underestimate the practical limitations and barriers

By 2025, 44pc of energy companies involved in hydrogen expect it to account for more than a tenth of their revenue, rising to 73pc of companies by 2030,  up significantly from just 8pc  of companies today, DNV says.

On the demand side, 33pc of hydrogen consumers expect it to represent more than a tenth of their organisation’s energy and feedstock spending by 2025, rising to 57pc by 2030. This is up from just 9pc today.

“Hydrogen has a new status in 2021 as an important, viable and rapidly developing pillar of the energy transition. Yet ambitions and the rate of change in the hydrogen economy are demanding, and the industry needs to prepare,” says Ditlev Engel, CEO of energy systems at DNV.

---

Author: Stuart Penson