China's Hydrogen Sector Set to Surge with New Energy Law
Key Ideas
  • China's Energy Law effective from January 2025 to boost investments in the hydrogen sector by removing restrictions and promoting technological advancements.
  • Hydrogen applications currently limited to commercial vehicles; new law to enable expansion to other sectors with infrastructure improvements.
  • Expected surge in hydrogen production, refuelling stations, and storage facilities post-legislation, addressing infrastructure gaps and reducing transportation costs.
  • Legislation marks a significant step in China's energy industry development, ensuring energy security and promoting renewable and low-carbon transformation.
China's Energy Law, set to be implemented in January 2025, is poised to revolutionize the country's hydrogen sector. The law will redefine the classification of hydrogen, removing barriers around its production, storage, and applications. Currently in a demonstration phase with a focus on commercial vehicles, the hydrogen sector is expected to witness significant growth post-legislation. The new law will facilitate the establishment of hydrogen production facilities, refuelling stations, and storage outside designated areas, thereby bridging existing infrastructure gaps. This move is crucial to reduce transportation costs and expand the use of hydrogen in urban public transport and long-haul sectors. With the enactment of this law, the Chinese hydrogen industry is anticipated to experience rapid development between 2026 and 2030. The Energy Law, approved by the National People's Congress, fills a legislative void in China's energy landscape, providing a comprehensive framework to enhance national energy security and promote renewable energy initiatives. The legislation covers various aspects of energy planning, market systems, reserves, innovation, supervision, and legal responsibilities. Overall, the Energy Law signifies a positive shift towards a more sustainable and technologically advanced energy landscape in China.
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