[SMM Hydrogen Energy Policy Update] Policy Interpretation of "Administrative Measures for Funds Supporting the Development of the Hydrogen Energy Industry by Guangzhou Municipal Development and Reform Commission"

I. Background and Process of Drafting

To prepare the Administrative Measures for Supporting the Development of the Hydrogen Energy Industry with Funds by the Guangzhou Municipal Development and Reform Commission (hereinafter referred to as the "Administrative Measures"), a comprehensive analysis and in-depth study were conducted on relevant national, provincial, and municipal regulations on the hydrogen energy industry, as well as on hydrogen energy industry policies issued by the five demonstration city clusters for fuel cell vehicle applications, and on policy documents such as administrative measures for supporting the development of the hydrogen energy industry with funds in other cities. Taking into account the actual development of Guangzhou's hydrogen energy industry, the Administrative Measures were formulated. The basis for formulation includes: the Energy Law of the People's Republic of China, the Medium and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035), the Implementation Plan for Accelerating the Development of the Hydrogen Fuel Cell Vehicle Industry in Guangdong Province, the Action Plan for Accelerating the Construction of Demonstration City Clusters for Fuel Cell Vehicles in Guangdong Province (2022-2025), the Notice of the Guangdong Provincial Development and Reform Commission and Other Departments on Printing and Distributing the Opinions on Accelerating the Innovative Development of the Hydrogen Energy Industry in Guangdong Province, and the Notice of the General Office of the Guangzhou Municipal People's Government on Printing and Distributing Several Measures to Accelerate the High-Quality Development of the Hydrogen Energy Industry.

II. Main Content

The Administrative Measures consist of 20 articles in total, covering five chapters: General Provisions, Support Standards and Application Requirements, Application and Approval Process, Supervision and Management, and Supplementary Provisions. In line with the requirements of the Notice of the General Office of the Guangzhou Municipal People's Government on Printing and Distributing Several Measures to Accelerate the High-Quality Development of the Hydrogen Energy Industry, the Administrative Measures clearly classify and specify the support standards, application requirements, and application and approval processes for various policies aimed at promoting the industrialisation of key parts, promoting large-scale applications, supporting the development of industrial clusters, and supporting the demonstration operation of vehicles, thereby enhancing their scientific nature and operability.

III. Main Highlights and Features

(1) Meeting the Development Needs of Guangzhou's Hydrogen Energy Industry. After years of cultivation, Guangzhou's hydrogen energy industry has laid a solid foundation for development. As of now, the city has promoted over 1,000 hydrogen fuel cell vehicles, constructed approximately 2 million m² of hydrogen energy industrial parks, cultivated over 100 hydrogen energy enterprises, and boasts a number of representative enterprises such as Hyundai HTWO, Hongji Chuangneng, Yuntao Hydrogen Energy, SinoHytec (Guangzhou), and Guangsheng Hydrogen Energy, with significant advantages in production and manufacturing. However, there is still a need to further strengthen policy support. The introduction of the Administrative Measures can strongly drive the development of Guangzhou's hydrogen energy industry.

(2) Adhering to the Principle of "Market-Oriented, Government-Guided". The Administrative Measures are mainly based on the Notice of the General Office of the Guangzhou Municipal People's Government on Printing and Distributing Several Measures to Accelerate the High-Quality Development of the Hydrogen Energy Industry. Unlike cities such as Beijing, Shanghai, and Foshan, the Administrative Measures aim to maximize the enthusiasm of market entities in developing the hydrogen energy industry by using relatively small fiscal investments as a guide, thereby achieving high-quality and sustainable development of the hydrogen energy industry.

(III) Clarified the requirements and procedures for the use of funds. The Administrative Measures have classified and clarified the support standards, application requirements, and application approval procedures for various policies, targeting different policy contents such as promoting the industrialisation of key parts, promoting large-scale applications, supporting the development of industrial clusters, and supporting the demonstration operation of vehicles. This has enhanced the scientific nature and operability of the policies.

IV. Expected Implementation Effects

The Administrative Measures have undergone comprehensive data analysis and investigation, fully reflecting the positioning of higher-level policies for the development of the hydrogen energy industry in our city, as well as the development needs of our city's industry. It provides incentives for the hydrogen energy industry in areas such as the industrialisation of key parts, large-scale applications, demonstration operation of vehicles, and the development of industrial clusters. This stimulates the enthusiasm of all parties to develop the hydrogen energy industry, laying an important foundation and creating a favourable atmosphere for promoting the high-quality development of the hydrogen energy industry in our city.