[SMM Weekly Review of Hydrogen Energy Industry] 20250814

I. Policy Review: Hydrogen Energy Policy Updates

(I) Domestic Policies

General Office of the National Energy Administration:Issued the "Notice on Publicizing the First Batch of Pilot Projects for Green Liquid Fuel Technology Research and Industrialisation". According to the project list, there are nine pilot projects, with a total of eight focusing on green methanol and green ammonia. These projects include: the Taonan Wind Power Coupled with Biomass Green Methanol Integrated Project, the Goldwind Science&Technology Green Hydrogen Production of 500,000 mt Green Methanol Project (Phase I: 250,000 mt/year), the Phase I of the Anda City Tianying Wind and Solar Power Storage Hydrogen Ammonia Methanol Integrated Project, the Liaoning Huadian Diaobingshan 450 MW Wind Power Hydrogen Production Coupled with Green Methanol Integrated Project, the Lanze Dafeng Port Annual Production of 300,000 mt Green Methanol Project, the Envision Zero Carbon Technology (Chifeng) Co., Ltd. 1.52 million mt/year Zero Carbon Hydrogen Ammonia Project (Phase P1: 300,000 mt/year of synthetic ammonia), the China Energy Engineering Group Songyuan Hydrogen Energy Industrial Park (Green Hydrogen Ammonia Methanol Integration) Project, and the Da'an Wind and Solar Power Production of Green Hydrogen for Synthetic Ammonia Integrated Project.

The Ministry of Finance and the State Taxation Administration:Issued the "Announcement on Clarifying VAT Policies for Express Delivery Services and Other Services". The announcement states that taxpayers with operating qualifications for road freight transportation on network platforms (network freight) who engage in network freight operations, purchase and deliver refined oil, natural gas, electricity, hydrogen energy, dimethyl ether, methanol, and other types of vehicle fuels (energy) to actual carriers, and pay road, bridge, and toll fees, are eligible to deduct input tax from output tax if the following conditions are met: firstly, the refined oil, natural gas, electricity, hydrogen energy, dimethyl ether, methanol, and other types of vehicle fuels (energy) and the paid road, bridge, and toll fees are used for transportation services commissioned by taxpayers engaged in network freight operations to actual carriers; secondly, the VAT tax credit certificates obtained comply with current regulations.

MIIT:In this period, a total of 11 hydrogen fuel cell car models or chassis were listed. Regarding hydrogen energy sedans, the Hongqi hydrogen fuel cell sedan was announced, equipped with a hydrogen fuel cell engine independently developed by China FAW Group Corporation Limited.

Henan Province:Issued the "Notice on Printing and Distributing Several Policy Measures to Support Enterprises in Reducing Costs and Increasing Efficiency in Henan Province". The document points out that policies for discounted road tolls and subsidies for the renewal of operating trucks will be implemented. From January 25, 2025, to December 31, 2025, hydrogen energy trucks passing through toll roads in Henan Province will be exempt from toll fees, and electric trucks passing through toll roads in Henan Province will enjoy a 30% discount on toll fees. From July 1, 2025, to June 30, 2026, a differentiated toll policy will be implemented for nine sections, including the Henan section of the Hubei-Beijing Expressway. Support the retirement and renewal of commercial freight vehicles meeting National IV emission standards or below. Provide fixed-amount subsidies ranging from 10,000 to 140,000 yuan under different conditions for the retirement of commercial freight vehicles only, the retirement and renewal of commercial freight vehicles, and the new purchase of new energy urban cold chain delivery freight vehicles. Before December 31, 2027, a 50% reduction in vehicle purchase tax will be applied for the purchase of trailers. Encourage enterprises to build renewable energy power generation projects such as photovoltaic, wind power, biomass power generation, and waste heat and pressure power generation projects locally and nearby in accordance with the integrated generation-grid-load-storage model, and increase the proportion of green electricity used by enterprises. Leverage the role of market mechanisms to drive cost reductions in coal-fired power through competition, cost reductions in wind and solar power through market entry, and cost reductions in power grids through potential tapping. Optimize the medium and long-term power trading mechanism and moderately expand the scale of external electricity procurement.

Policy Interpretation:

1. *Notice on Publicizing the First Batch of Pilot Projects for Technological Breakthroughs and Industrialization of Green Liquid Fuels*:Projects generally adopt the "wind and solar power + green hydrogen/biomass" coupling technology. For example, the Taonan 680,000 kW wind power coupling biomass gasification project reduces carbon emissions in methanol production by 65% compared to traditional processes. The Goldwind Science&Technology Xing'an League project pioneers the multi-energy synergy of "wind - hydrogen - storage - biomass," equipped with a high-pressure biomass gasifier, securing international shipping orders for green methanol, which is conducive to forming a "technology - market" closed loop.

2.*Notice on Issuing Several Policy Measures to Support Enterprises in Reducing Costs and Increasing Efficiency in Henan Province*:

Concurrently, Henan Province has introduced 20 measures focusing on the low-carbonization of transportation and logistics and the marketization of green electricity consumption, directly reducing enterprise operating costs. Precise subsidies in the logistics sector: In 2025, highway tolls will be fully waived for hydrogen-powered freight vehicles and a 30% discount will be offered for electric freight vehicles. This, combined with subsidies for the retirement and renewal of National IV freight vehicles (10,000-140,000 yuan) and a 50% reduction in vehicle purchase tax for trailers (until 2027), significantly reduces the operating costs of new energy freight vehicles. Innovation in electricity consumption mechanisms: Enterprises are encouraged to build "generation-grid-load-storage" projects (such as photovoltaic and wind power) to reduce energy costs through medium and long-term power trading and external electricity procurement, with the goal of driving cost reductions in coal-fired power, wind and solar power, and power grids before 2027.

European Commission:It has released a document titled *Methodology for Accounting Greenhouse Gas Emission Reductions from Low-Carbon Fuels*, which for the first time clarifies the calculation formula and certification standards for the emission intensity of low-carbon fuels (excluding renewable carbon fuels), including low-carbon hydrogen.

European Union:Guided by the *European Green Deal* and the *European Climate Law*, the EU has introduced a series of carbon reduction policies. Among them, the *Fuel EU Maritime Regulation* (FEU) will be officially implemented in 2025, which will accelerate the application of renewable fuels in the shipping industry. The Carbon Border Adjustment Mechanism (CBAM) is expected to be implemented in 2026, which will impose carbon taxes on specific imported goods.

Germany: Adopted the National Hydrogen Strategy, aiming to achieve 5GW of green hydrogen capacity by 2030.

France: Updated its National Hydrogen Strategy. Established a €4 billion support mechanism to ensure the competitiveness of the low-carbon hydrogen market over the next 15 years. Key adjustments include reaching 4.5GW of national electrolyzer capacity by 2030 and 8GW by 2035, strengthening technological autonomy across the entire industry chain, developing low-carbon hydrogen transportation networks, and securing fundamental conditions for hydrogen industry development.

US: President Trump signed the "Big and Beautiful" Act, extending the commencement deadline for hydrogen industry tax credit projects by two years to 2028. Originally, hydrogen projects had to commence by January 1, 2026, to qualify for a maximum tax credit of $3 per kg, but this has now been extended to January 1, 2028.

Policy Analysis:

1. Standard Fragmentation and Cost Challenges: The EU's "carbon extraterritoriality" sparked controversy: its accounting method excludes "renewable carbon fuels" (e.g., biomass-based hydrogen), drawing accusations of technological discrimination. CBAM's indirect emission tracing (e.g., grid carbon intensity for electrolytic hydrogen) downgraded Morocco's PV-based hydrogen projects due to its 15% coal-powered grid. More critically, EU carbon price volatility (which surged to €110/mt in 2023) directly impacts imported hydrogen costs, forcing countries like Algeria to demand "carbon price-linked" long-term contracts—a new-type trade clause reshaping global energy agreements.

2. Competition and Positioning: The carbon reduction stimulus policy packages of China and the EU essentially represent an industrial reshuffle weaponized by standards. Germany's pipelines, France's electrolyzers, and US subsidies collectively form a "Three Kingdoms" narrative in the hydrogen era. For China, adapting to EU carbon footprint accounting is urgent, but vigilance against "standard barriers" evolving into "technological lock-in" is paramount—when the EU mandates second-generation hydrogen-barrier coatings for projects by 2027, domestic firms' technological iteration speed will determine their standing in this global low-carbon race.

II. Corporate Dynamics: Surge in Project Signings and Technical Collaborations

(1) Project Intelligence

Farizon New Energy Commercial Vehicle Group: On August 9, Farizon signed orders for 270 methanol-hydrogen heavy-duty trucks and buses with local users, delivering methanol-hydrogen heavy-duty and light-duty truck products.

Shanghai Reshape Energy Group Co., Ltd.: Reshape Energy (02570.HK) announced on August 8, 2025, that its subsidiary Guangdong Explore Automotive entered into a capital increase agreement with Guangdong Enze and Enze Fund to expand Enze's registered capital, supporting the company's strategic planning in hydrogen production and further market expansion.

Wuxi Mingyang Hydrogen Fuel Power Technology Co., Ltd.: The world's first 30MW-class pure hydrogen gas turbine hydrogen energy storage demonstration project, jointly created by Mingyang Hydrogen Fuel, a subsidiary of Mingyang Smart Energy, and Shenzhen Energy, officially broke ground in the Etuoke High-tech Industrial Development Zone, Ordos City, Inner Mongolia.

Huadian Jiangsu Wangting Power Plant : Unit 6 of Huadian Jiangsu Wangting Power Plant is equipped with the world's first 500MW fully hydrogen-cooled generator. After a 168-hour full-load test run, it officially entered commercial operation, with an expected annual power generation of approximately 1.22 billion kWh, capable of meeting the electricity needs of 250,000 households.

Zhongtang Town, Dongguan City, Guangdong Province: 50 hydrogen-powered two-wheelers were introduced for food delivery services, marking the city's first hydrogen energy mobility project without subsidies and fully commercialized. Dongguan plans to expand the scale of fuel cell vehicles to 200 units by the end of 2025 with the support of cooperation in relevant fields.

Inner Mongolia Huadian Huameng Pipeline Co., Ltd.: Released a tender announcement for the general contracting of pipeline construction for the hydrogen long-distance pipeline project from Damao Banner to Baotou City. According to the tender announcement, the starting point of the hydrogen long-distance pipeline from Damao Banner to Baotou City is the first station in the Barun Industrial Park (Chemical Industry Concentration Zone) of the Bayan Obo Mining Area, with the overall pipeline direction running from north to south, passing through the Barun Industrial Park (Chemical Industry Concentration Zone) of the Bayan Obo Mining Area, the Bayan Obo Mining Area, the New Industrial Park, Guyang County, Urad Front Banner, and the Kundulun District of Baotou City, with the terminal station located in the Kundulun District. The total length of the pipeline is approximately 195km, with a design pressure of 6.3MPa, a pipe diameter of DN457, and a designed annual hydrogen transmission capacity of 100,000 mt.

China National Nuclear Corporation: Released a tender announcement for the procurement of hydrogen storage tanks, with plans to purchase 3 hydrogen storage tanks.

(II) Corporate Developments

Jinlihua Electric: Jinlihua Electric originally planned to acquire 100% equity in Beijing Hydrogenergy Technology Co., Ltd. through the issuance of shares and payment in cash, and also planned to issue shares to the controlling shareholder of the publicly listed firm to raise supporting funds. This transaction constitutes a related-party transaction and is expected to constitute a major asset reorganization, but does not constitute a reverse takeover.

Yuancheng New Energy Commercial Vehicle Group: The Yuancheng Starlight G methanol-hydrogen electric tractor and the Yuancheng Interstellar U11M methanol-hydrogen electric intercity bus were officially launched in Hohhot.

Shanghai ReFire Energy Group Co., Ltd.: ReFire Energy (02570.HK) announced that on August 8, 2025, its subsidiary Guangdong Explore Automobile entered into a capital increase agreement with Guangdong Enze and Enze Fund to increase the registered capital of Guangdong Enze, in order to support the company's strategic planning in the hydrogen production field and further expand the hydrogen production market.

Sinopec Qingdao Refining & Chemical Co., Ltd.: As of early August, Sinopec Qingdao Refining & Chemical Co., Ltd. had cumulatively produced over 1,000 mt of fuel cell hydrogen in the past four years, with its hydrogen operation capacity significantly enhanced. The current daily supply now reaches 1,500 kg.

MgreSjø: Norwegian shipping company MgreSjø placed an order with Turkey's Gelibolu Shipyard for two hydrogen-powered bulk carriers. These represent the world's first hydrogen-powered bulk carrier orders, marking the application of hydrogen energy technology in the most-traded contract bulk carrier market. The adoption of green-fuel vessels is rapidly expanding.

Proton Motors: Proton Motors launched the Yaoling II, featuring a unique "driverless cab + center axle" design that maximizes cargo space within regulatory limits, offering 38% more capacity compared to traditional tractors. With only one remote safety officer efficiently overseeing multiple vehicles in transit, it enables 24/7, all-scenario uninterrupted operation, reducing labor and time costs while maximizing customer benefits.

Junrui Green Hydrogen Energy (Group) Co., Ltd.: Co-hosted with Baoyanster (Sichuan) Technology Co., Ltd., the "Junrui Lingmai Hydrogen Pipeline Material Selection and Hydrogen Refueling Station Construction Technology Coordination Meeting" was held in Wuhou High-Tech Zone, Chengdu. The meeting focused on in-depth discussions of hydrogen pipeline technical solutions, aiming to advance hydrogen infrastructure development and support national energy transition and carbon neutrality goals.

Hangzhou Shenshi Energy-saving Technology Co., Ltd. : Hangzhou Shenshi Energy-saving Technology Co., Ltd. and Xi'an Jiaotong University jointly established the "Advanced Energy Power Technology Research Institute" (referred to as the "Institute") in Jiande City, Zhejiang Province.

III. Technological Advancements: Efficiency and Cost Breakthroughs

(I) Production, Storage, and Transportation

Shougang Group: Successfully developed a full series of hydrogen pipeline steels (B/X42/X52/X60/X65MH), overcoming six key technical challenges such as hydrogen embrittlement and low-temperature toughness, forming a comprehensive product matrix for hydrogen pipelines.

CNPC Baoshun (Qinhuangdao) Steel Pipe Co., Ltd. : Successfully trial-produced multiple specifications of "longitudinal submerged arc welded pipes" (D610x12.7/14.3mm, material/X60MH) for pure hydrogen transportation.

SPIC Central Research Institute: The hydrogen storage and transportation team at the Advanced Low-Carbon Institute developed large-diameter (DN150), high-pressure (10MPa) non-metallic flexible hydrogen pipelines, achieving safe and stable operation for 30 days on the test platform.

COOEC Special Equipment Branch: The design results of the independently developed "low-temperature liquid hydrogen storage tank" for deep-sea floating platforms have received the Approval in Principle (AIP) certificate from the China Classification Society (CCS), indicating that the safety and reliability of the results fully meet the CCS's specifications.

Dalian Institute of Chemical Physics, Chinese Academy of Sciences: Breakthrough in membrane technology for alkaline electrolyzers: Development of an ultra-thin (20μm) composite separator, enhancing electrolysis system efficiency to 85% (LHV) with a lifespan exceeding 60,000 hours.

(II) Fuel Cell Innovations

Liaoning General Aviation Research Institute: The RX4M, China's first four-seat hybrid electric aircraft, independently developed by the team led by Academician Yang Fengtian from the Liaoning General Aviation Research Institute of Shenyang Aerospace University, successfully completed its maiden flight at the Shenyang Faku Caihu Airport, contributing a "Chinese solution" to the global development of electric aircraft.

Dongfang Hydrogen Energy: Obtained a patent for a system that improves the humidity of the air entering the fuel cell stack in the field of fuel cell technology.

Georgia Power: Announced the successful completion of the second hydrogen-natural gas blended fuel experiment for the M501GAC natural gas turbine, developed in collaboration with Mitsubishi Power, under partial and full load conditions.

The US Hydrogen Association (DoE) led the establishment of the "Hydrogen Refueling Station Compatibility Alliance":

Unified the 70MPa hydrogen refueling nozzle interface standard, eliminating barriers in hydrogen refueling protocols among automakers such as Toyota, Hyundai, and Nikola, and promoting interoperability of the hydrogen refueling network.