Great Potential for the Hydrogen Energy and ESS Industry in Yunnan

At the Investment Promotion Conference on Hydrogen Energy and Energy Storage in Yunnan held on December 19, in addition to policy and resource investment promotion, representatives from sectors such as power, information technology, and high-end equipment gathered to discuss application scenarios for hydrogen energy in "production, storage, transportation, and utilization," facilitating the docking and implementation of new technologies and projects.

Improving Mechanisms to Promote Industrial Development

The hydrogen energy industry is a key direction for the global energy technology revolution and industrial development. As a clean, efficient, safe, and sustainable secondary energy source, hydrogen energy can be widely applied in industries such as manufacturing, transportation, construction, and power generation. Hydrogen energy and energy storage are critical components and foundational equipment for building a new energy system, supporting the achievement of carbon peaking and carbon neutrality goals. They are also essential for fostering new productive forces, creating new energy business models, and securing a strategic international competitive edge. Accelerating the development of the hydrogen energy and energy storage industries plays a pioneering and strategic role in constructing a modern industrial system.

The Yunnan Provincial Party Committee and Provincial Government attach great importance to the development of the hydrogen energy and energy storage industries. They have successively issued the "Work Plan for Accelerating the Development of the Hydrogen Energy Industry in Yunnan Province (2024–2025)," the "Policy Measures to Support High-Quality Development of the New-Type Energy Storage Industry in Yunnan Province," and the "Implementation Plan for the Development of New-Type Energy Storage in Yunnan Province (2024–2025)." These initiatives aim to further improve the mechanisms ensuring the development of the hydrogen energy and energy storage industries and accelerate their breakthrough growth.

In the hydrogen energy industry, Yunnan has established a presence across the industry chain, including water electrolysis hydrogen production, storage and transportation, fuel cell engine systems, basic materials, and demonstration applications. A series of "new energy + green hydrogen" pilot demonstrations have been launched, including the introduction of the nation's first hydrogen fuel cell bus, the construction of the province's first hydrogen refueling station and the first green hydrogen zero-carbon smart factory in Lijiang City, and the initiation of the nation's first full industry chain demonstration project for green hydrogen and liquid sunshine (clean methanol) in Qujing City. The "Work Plan for Accelerating the Development of the Hydrogen Energy Industry in Yunnan Province (2024–2025)" sets a target for the province's hydrogen energy industry chain revenue to reach 5 billion yuan by the end of 2025.

In the energy storage industry, the new-type energy storage battery industry, closely related to new energy, covers the entire process from battery material production to battery manufacturing and application, forming a relatively complete new-type energy storage industry chain. In 2023, Yunnan's new energy battery industry achieved an output value of 33.296 billion yuan, with a value-added increase of 45.9% YoY. Currently, Yunnan has attracted leading enterprises such as DFD Nanotechnology, Hunan Yuneng, Shanshan Technology, EVE, and Shenzhen Yuanxin. A development pattern has initially taken shape, focusing on Kunming, Qujing, and Yuxi, with mutual support from Dali, Zhaotong, Baoshan, Chuxiong, and Honghe.

Enhancing Collaboration Across the Industry Chain

At this promotion conference, the Anning Industrial Park closely aligned with the event's theme, introducing its advantages in hydrogen energy and energy storage development from multiple dimensions, including understanding Anning, entering the park, and industrial implementation. It launched a series of investment plots focusing on energy storage battery cell manufacturing, hydrogen energy heavy truck manufacturing, hydrogen energy projects, and hydrogen energy application scenarios.

In the hydrogen energy sector, the park leverages by-products of gray and blue hydrogen from existing coking and refining plants, benefiting from low hydrogen collection and purification costs. It also has the capacity to support industries such as green hydrogen, green methanol, and green ammonia. The surge in bulk industrial material transportation within the park is expected to drive greater demand for new energy heavy trucks, further promoting the hydrogen energy industry. In the energy storage sector, the park has preliminarily established an industrial ecosystem of "resources–materials–applications–recycling" around electrochemical energy storage. The energy storage battery industry, closely related to new-type energy storage, has formed a relatively complete upstream and downstream industry chain. Additionally, the substantial industrial electricity demand provides strong support for the development of the shared energy storage industry.

"We are actively attracting enterprises related to hydrogen production, refueling, and storage, striving to bring well-known and influential hydrogen companies to Anning to realize the application of hydrogen energy and hydrogen fuel cells. At the same time, we are further exploring hydrogen energy application scenarios within the park to effectively connect the upstream and downstream of the industry chain," said Yang Xiaodong, Deputy Director of the Anning Industrial Park Management Committee. "In the energy storage sector, the park has a large number of industrial users. Next, we will fully leverage the potential of grid-side and user-side energy storage to promote the formation of a relatively complete and healthy energy storage industry ecosystem."

Zhou Tao, a senior partner at Great Wall Strategic Consulting and Director of High-Tech Zone Consulting, stated that technology, scenarios, resources, and energy are the three driving forces for developing the hydrogen energy and energy storage industries. Yunnan has great potential in these areas. As a major province for non-ferrous metals and green electricity, Yunnan has the resources, conditions, and foundation to develop the hydrogen energy and energy storage industries. According to data, as of July this year, the province's power supply installed capacity reached 144 million kW, with clean energy accounting for nearly 90%. Last year, clean energy power generation reached 350.4 billion kWh, accounting for 85%. Yunnan is rich in phosphate, lithium, and salt resources, with proven phosphate reserves of 4.02 billion mt, accounting for 18.6% of the national total and ranking second in the country. The central Yunnan region is estimated to have lithium oxide resources of up to 4.89 million mt, and the province's salt reserves total 9.3 billion mt, also ranking second nationwide. These abundant resources provide strong support for the development of water electrolysis hydrogen production and new-type energy storage industries.

Zhou Tao believes that Yunnan's current hydrogen energy and energy storage technologies are concentrated in upstream fields. Efforts should be made to strengthen technological, scenario, and industrial innovation in the midstream and downstream of the industry chain. Enterprises, research institutes, and universities should be encouraged to establish cooperative R&D mechanisms to create an integrated innovation ecosystem of production, education, research, and application. At the same time, the role of industrial funds should be leveraged to significantly enhance the scale and capacity of these funds. By using investment to attract development, the industry can be driven forward, fully building a hydrogen energy and energy storage industry ecosystem.