On March 6, 2026, the Ministry of Industry and Information Technology (MIIT), the Ministry of Finance (MOF), and the National Development and Reform Commission (NDRC) jointly issued the Notice on Carrying out Pilot Projects for Integrated Hydrogen Energy Applications (hereinafter referred to as “the Notice”). It outlines requirements for city clusters to apply for comprehensive hydrogen energy pilots, covering fuel cell vehicles, green hydrogen-based chemicals, hydrogen metallurgy, hydrogen blending, and innovative applications, with central government rewards of up to RMB 1.6 billion per pilot cluster over four years.

Objective

To drive down costs through large-scale multi-scenario applications, facilitate breakthroughs in hydrogen energy technologies and equipment, and promote high-quality development of the hydrogen energy industry.

Requirements and Targets

By 2030, city clusters shall achieve large-scale application of hydrogen across multiple sectors, with the average end-use hydrogen price reduced to below RMB 25 per kilogram (approx. USD 3.66/kg), and strive to reach around RMB 15 per kilogram (approx. USD 2.20/kg) in some advantaged regions. The national stock of fuel cell vehicles (FCVs) is expected to double compared to the 2025 level, aiming to reach 100,000 units. By expanding application scale, the program seeks to drive innovation breakthroughs in hydrogen application technologies, processes, and equipment, achieve iterative upgrades in fuel cells, electrolyzers, storage and transport devices and materials, and position hydrogen as a new economic growth engine, thereby supporting a comprehensive green transformation of economic and social development.

Tasks

City clusters should prioritize eligible application scenarios such as fuel cell vehicles, green hydrogen-based ammonia and methanol, substitution of hydrogen-based chemical raw materials, hydrogen metallurgy, and hydrogen blending for pilot implementation, while actively exploring innovative hydrogen application scenarios. The goal is to form an integrated hydrogen application ecosystem characterized by “one general scenario (fuel cell vehicles) + N industrial application scenarios + X innovative application scenarios.” Key development priorities include: fuel cell vehicles, green hydrogen-based ammonia and methanol, substitution of hydrogen-based chemical raw materials, hydrogen metallurgy, hydrogen blending, and innovative application scenarios.

Application Requirements and Selection Process

The pilot program for integrated hydrogen applications requires city clusters as the primary application entities, which shall form voluntarily based on the principles of “regional connectivity, industrial synergy, and closed-loop ecosystem,” with one city designated as the lead coordinator. Six eligibility criteria must be met: having clear application scenarios, strong clean low-carbon hydrogen supply capacity, a sound industrial chain, a favorable policy environment, and proven hydrogen application experience; leveraging leading enterprises as drivers; the lead city ensuring resource integration and overall coordination; adopting fuel cell vehicles as the general scenario while developing localized multi-scenario synergies; avoiding low-level redundant construction; and complying with regulations on safety, energy efficiency, and environmental protection.

Selection process: The lead city shall coordinate the preparation of a pilot work plan and cooperation agreements, with member cities providing commitment letters. After review and guidance by provincial authorities, applications shall be submitted via the designated platform by April 15, 2026. Subsequently, applications will undergo third-party evaluation, revision and improvement, approval by provincial authorities, and final resubmission. The three issuing ministries will then select up to five city clusters on a competitive basis, with implementation proceeding as soon as each cluster’s plan is deemed mature.

The attachments of the Notice also present detailed requirements for fuel cell vehicles as a key priority listed in the annex:

ž  Construction content: Focus on hydrogen expressways/corridors, promote large-scale application of commercial vehicles, and deploy refueling stations.

ž Application conditions: At least 1,500 FCVs already deployed, 10 refueling stations built and operational (each with capacity ≥500 kg), and hydrogen price ≤ RMB 35/kg (approx. USD 5.12/kg).

ž Pilot targets: Deploy over 8,000 FCVs, build more than 30 new refueling stations, reduce hydrogen price to ≤ RMB 25/kg (approx. USD 3.66/kg) – with advantaged regions striving for RMB 15/kg (USD 2.20/kg) – achieve large-scale application of at least seven key components, and ensure average annual hydrogen-powered driving distance per vehicle exceeds 30,000 km.

ž  Technical requirements: Pure-hydrogen range ≥350 km; hydrogen consumption, power, warranty, etc. shall meet national standards.

ž Work plan: Shall specify promotion plans, refueling station construction plans, and installation plans for key components.

ž Financial support: Rewards calculated based on vehicle deployment scale and hydrogen refueling volume (1 point = RMB 80,000, approx. USD 11,713). Points per vehicle decrease annually, with a multiplier of 1.1 for heavy-duty cold-chain vehicles.

Foreign suppliers should note that all eligible products under the pilot program must be manufactured, sold, and used within China. To participate, international manufacturers are advised to localize production through joint ventures or technology licensing with Chinese partners, and ensure their components (e.g., fuel cells, electrolyzers, storage systems) meet the specified national technical standards and cost targets. Additionally, given the reward caps per enterprise per cluster, strategic collaboration with multiple Chinese city clusters may be necessary to maximize market access.