International Government Hydrogen Updates: China and India
Connor Dolan
By Nova Thayer
As more and more countries continue to use hydrogen, it’s worth revisiting countries that FCHEA has discussed in the past, such as China and India. The two countries have recognized the value of hydrogen and have been working hard to establish domestic clean hydrogen production chains over the last couple of years.
China
China has been an early adopter of hydrogen, and many of its previous laws and regulations called for the adoption of a hydrogen economy. Recently however, the Chinese government published the first official hydrogen plan for the country, designed to set specific guidelines, and long-term growth targets for the hydrogen industry.
The plan covers a wide range of areas, from manufacturing, and research capabilities, manufacturing targets, and specific goals for hydrogen production and consumption. By 2035 the country seeks to have four main goals completed:
· a centralized innovation platform for hydrogen research,
· constructing and deploying a significant amount of hydrogen infrastructure,
· promoting hydrogen usage across industry,
· and refining laws to promote hydrogen usage broadly.
Overall, the central government seeks to “significantly improve” the portion of clean hydrogen in use across China by 2035. To do so, the government released some nearer term targets to produce up to 200,000 tons of clean hydrogen and deploy 50,000 hydrogen-fueled vehicles by 2025. China already has approximately 9,000 hydrogen-fueled vehicles on the road, and FCHEA members like Ballard are working to supply the fuel cell technology needed to meet the ambitious vehicle target.
In addition to the central government, local governments and the private sector are also getting involved in the clean hydrogen economy. The projects range from large-scale solar projects to zero-carbon industrial parks that are designed to test and improve zero-carbon technology, like hydrogen. Local cities and province governments are also working to produce hydrogen refueling stations and hydrogen infrastructure, with fiscal bonuses being provided to the provinces and cities that meet the targets.
It's clear that China views hydrogen as an essential technology to combat climate change, and the new long-term hydrogen plan provides necessary guidance for private investment.
India
India has also begun to recognize clean hydrogen as essential to decarbonization. The Indian government recently announced a “phase one” document for clean hydrogen production, and released a set of policies in early 2022. The policies include allowing clean hydrogen producers to buy renewable energy at reduced rates, simplifying the permitting and licensing process to prioritize clean hydrogen, and allowing the construction of storage containers next to ports designed for hydrogen. The government has also promised to waive inter-state transmission charges for 25 years if the project is commissioned before June 30, 2025. This would significantly reduce the cost of clean hydrogen, potentially jumpstarting the hydrogen economy in India. This is all part of the government’s effort to reduce carbon emissions to zero by 2070.
The government plans to release more policies to encourage the use of hydrogen production, including manufacturing zones dedicated to clean hydrogen. A comprehensive clean hydrogen policy is currently being debated internally, and it is likely that more specific details and policies will be released over the next couple of years. It’s currently unknown if this will come in the form of sector-by-sector policy changes, or a large comprehensive national hydrogen strategy.
Conclusion
India and China are essential contributors in the world economy, and as both countries continue to grow the hydrogen industry, it’s important to pay attention. China has invested a significant amount of both public and private sector support for the industry, and India has begun to invest in its domestic hydrogen market as well. As international demand for hydrogen continues to rise, it’s likely that these countries will be significant players in the new hydrogen economy.