Reduce costs, expand scenarios, strengthen collaboration — the hydrogen energy industry accelerates market-oriented breakthroughs

Securities Daily reporter Xu Linyan Li Jing

On March 25, 2026, the China Hydrogen Energy Expo and the International Hydrogen Energy Conference officially opened. Entering the Beijing National Convention Center, reporters from Securities Daily felt a strong atmosphere of innovation in the hydrogen energy industry. Busy booths and precise hydrogen equipment made this modern venue feel futuristic and technological.

“Previously, similar German-imported equipment was very expensive. Now, we have achieved full domestic production. Our core sensors are the result of joint R&D between the company and partners, and the end-market price has nearly halved,” Wang Xin, Director of the Marketing Department of the Hydrogen Energy Business Division at Hitachi Xin (Henan) Co., Ltd., told Securities Daily. The evolution of a handheld testing device vividly illustrates industry development and breakthroughs. Autonomous control is becoming a key factor in scaling up the hydrogen energy industry.

Latest technological achievements showcased collectively

At this expo, many exhibitors presented their latest technological results and featured products, highlighting innovations across all segments of the hydrogen energy industry chain.

“We attend every year, and I can clearly feel that the layout of the exhibition halls has been optimized and upgraded—industry connections among exhibitors are becoming closer. Efficient industry exchanges within a single venue have greatly improved matchmaking efficiency,” said Mi Jing, Deputy General Manager of the New Energy Business Division at the Graduate Institute of Engineering Technology Research Institute Co., Ltd., in an interview with Securities Daily. She added that the professional level of the expo has improved year by year, making it an indispensable platform for industry exchange.

Equipment integration was one of the highlights of this expo. Song Fucai, General Manager of the Group at Thopp Clean Energy (Group) Co., Ltd. (hereinafter “Thopp Shares”), told Securities Daily that previously, the integrated hydrogen production and refueling station project faced layout difficulties due to site constraints, design standards, and safety distances. This time, the new product—integrated intelligent hydrogen production and refueling equipment—integrates hydrogen production, storage, and refueling into a single container, enabling rapid deployment and effectively solving the land-use issues of traditional projects.

“Currently, some hydrogen refueling stations face mismatched scale and demand, leading to potential waste of investment. Our equipment uses multiple hydrogen production methods based on energy distribution, allowing flexible capacity adjustment according to actual hydrogen needs. It features a small footprint and mobility, suitable for various scenarios,” added Song Fucai.

Hydrogen application and safety issues have long been market focus. Mi Jing highlighted products related to solid-state hydrogen storage technology—solid-state hydrogen storage devices. Unlike traditional high-pressure storage, this device does not require high-pressure environments; it only needs megapascal-level pressure to store hydrogen, with efficient and stable release. This product is already used in green hydrogen chemical industries, fuel cell two-wheelers, and distributed energy fields.

Regarding safety, Mi Jing said: “Our core advantages are twofold: first, low storage pressure—lower pressure means higher safety redundancy; second, the product has passed comprehensive safety tests including gunfire, fire, vibration, and drops. Its safety fully complies with national standards, ensuring reliable operation in real-world applications.”

Autonomous control is crucial for industry scaling. CRRC (China CNR Corporation Limited) emphasizes independent R&D and innovation, especially breakthroughs in core technologies like electrolyzer cells and diaphragm electrodes. “At this expo, we showcased products and services covering the entire industry chain, including key components and supporting software, providing integrated solutions to help industry-scale development,” said a staff member from CRRC Zhuzhou Institute’s comprehensive energy division.

Sea-based hydrogen production equipment also drew attention. Liu Xiaowei, Sales Director at Shanghai H2Seng Chuanghe Energy Technology Co., Ltd., introduced a star product—a 5MW PEM (Proton Exchange Membrane) electrolysis system designed for offshore floating platforms. It can convert offshore wind power into hydrogen for transport. Compared to traditional subsea cables, it reduces costs by over 30%, and the economic advantage increases with longer transmission distances, opening new pathways for large-scale deep-sea wind power development.

“China’s offshore wind resources are vast, with nearshore potential around 1.55 billion kilowatts and deep-sea resources about 1.23 billion kilowatts. However, the current grid-connected capacity is only 44.2 million kilowatts, and high transmission costs hinder further development,” Liu Xiaowei explained.

Application scenarios continue to expand

In transportation, hydrogen refueling infrastructure and hydrogen-powered vehicles show the most significant progress.

“In Rugao, Jiangsu, we built the country’s first dual-mode hydrogen refueling station capable of 35MPa and 70MPa. It has a capacity of 1,000 kg/day, with the 35MPa dispenser able to refuel two hydrogen vehicles simultaneously,” said Luo Shilong, Director of the Hydrogen Energy Industry Department at State Power Investment Hydrogen Energy Technology Co., Ltd. (hereinafter “Hydrogen Energy Tech”).

Progress in heavy-duty trucks and commercial vehicles has also been notable. The renewable carbon emission reduction project in Ningdong, Ningxia, has built two refueling stations and two hydrogen production sites. One station, with a capacity of 5,000 standard cubic meters per hour, mainly supplies hydrogen for heavy-duty trucks, with 59 trucks already in operation, totaling over 2 million kilometers driven.

Smart upgrades have further improved convenience and safety. The first fixed heavy-load railway hydrogen refueling station in China, built by Hydrogen Energy Tech—the Ordos Batuta Railway station—features independently developed low-temperature-resistant refueling robots and an intelligent control system. It can supply 500 kg of hydrogen daily at a rate of 7.2 kg per minute, and has begun commercial operation.

At the expo’s featured zone, staff told Securities Daily that differentiated deployment of hydrogen applications makes heavy-duty trucks and industrial use the main focus. First, hydrogen heavy-duty trucks and transportation. Yijinhuoluo Banner relies on coal mine resources to demonstrate hydrogen truck transport; cities like Ordos and Qingdao are accelerating promotion, with broad market potential. Second, industrial decarbonization. Green hydrogen combined with coal chemical, metallurgical, and semiconductor electronic gases aligns with “dual carbon” goals. Xiamen focuses on high-purity green hydrogen for semiconductors, creating synergistic industrial advantages.

Policies have propelled the hydrogen industry’s rapid growth. This year’s Government Work Report emphasized developing a green, low-carbon economy. Policies to promote green development, key industry actions to improve quality, reduce costs, and cut emissions, and the construction of zero-carbon parks and factories are being advanced. A national low-carbon transition fund is being established to support new growth points like hydrogen and green fuels. According to a March 16 notice from the Ministry of Industry and Information Technology, three departments—the MIIT, Ministry of Finance, and NDRC—recently issued a notice to pilot comprehensive hydrogen applications, promoting industry development.

Policy benefits continue to attract capital. According to the China Hydrogen Energy Union Research Institute, by the end of 2025, over 600 investment and financing events had supported nearly 400 early-stage projects, accounting for over 60%, covering the entire industry chain.

Investment is becoming more diversified, expanding from a focus on fuel cells to include green hydrogen production, hydrogen metallurgy, and storage and transportation equipment. The capital market’s industry hierarchy is taking shape, with five companies listed on H-shares, and more entering listing advisory stages.

“Developing hydrogen energy is a strategic choice for building a new energy system, and industry-finance integration is the key driver for large-scale, market-oriented transformation,” said Liu Wei, Secretary-General of the China Hydrogen Energy Union and Director of the Hydrogen Energy Division at State Power Investment Group. Diversified capital cooperation helps ease R&D pressures, promotes technological breakthroughs, and accelerates industry transition from policy-driven to market-driven.

Guotai Junan Securities believes that hydrogen energy, as a vital part of the future energy system, is at a critical turning point toward scaling and commercialization.

Accelerating the improvement of the industry ecosystem

As a core platform for showcasing innovation and enabling commercialization, this expo gathered over 400 leading hydrogen companies, forming a powerful full-industry chain matrix.

The reporter observed that numerous major project signing and launch ceremonies took place on site, aligning resource needs across the entire chain, speeding up the transformation of innovative technologies from “exhibits” into “products,” and guiding industry momentum from “labs” to “production lines.”

However, large-scale industry development still faces many practical obstacles. Interviews revealed that hydrogen storage and transportation remain the biggest bottlenecks. Insufficient technological maturity and high costs cause a severe mismatch between supply and demand—between concentrated green hydrogen production areas and consumption zones. Additionally, green hydrogen production costs are still higher than fossil fuels, and high costs for electrolyzers and infrastructure hinder progress, trapping many projects in a “produce but cannot use or profit” dilemma.

Yang Hongliang, Investment Solutions Manager at the Asian Infrastructure Investment Bank, said that expanding the industry requires not only increasing production but also building a new industry chain and ecosystem, including renewable energy generation, electrolytic hydrogen production, storage and transportation facilities, transportation networks, port infrastructure, and end-use applications.

“The key to marketization breakthroughs in hydrogen energy is reducing costs, expanding scenarios, and strengthening coordination,” said Lin Boqiang, Dean of the China Energy Policy Research Institute at Xiamen University. He noted that the industry is still transitioning from policy-driven to market-driven. In the short term, it should rely on national pilot policies to expand key applications like industrial and transportation sectors, using large-scale deployment to lower costs across the chain. In the medium and long term, focus must be on overcoming technical weaknesses in storage, transportation, and core components, while accelerating the development of unified standards and top-level planning nationwide. Only by achieving full-chain integration of “production, storage, transportation, and use,” and coordinated upstream and downstream efforts, can the “last mile” of commercializing hydrogen be truly opened.

2026 marks the first year of the “14th Five-Year Plan’s extension into the 15th Five-Year Plan” and is crucial for industry scaling and commercialization. Yu Zhuoping, Chair of the Expert Committee of the China Hydrogen Energy Union, predicts that by the end of the “15th Five-Year Plan,” the cost of hydrogen for end-users domestically could fall below 25 yuan per kilogram, roughly equal to gasoline costs, and industrial hydrogen costs could match those of hydrogen from natural gas. As costs decrease, applications expand, and the industry ecosystem improves, hydrogen energy will be fully integrated into energy, industrial, and transportation sectors, achieving market-oriented, large-scale adoption, and providing lasting momentum for China’s “dual carbon” goals and energy powerhouse ambitions.