News boosts the hydrogen energy sector to a seven-day in the capital market

News Update: On February 22, the Shanxi Provincial Development and Reform Commission issued a notice stating that in order to promote the implementation of the "Medium and Long-term Plan for the Development of the Hydrogen Energy Industry in Shanxi Province (2022-2035)" and facilitate high-quality development of the hydrogen energy industry, on February 18, the Provincial Development and Reform Commission and the Provincial Department of Industry and Information Technology jointly issued the "Action Plan for the Hydrogen Energy Industry Chain in Shanxi Province by 2024" (hereinafter referred to as the "Action Plan"). The plan proposes 11 key tasks, such as advancing the construction of hydrogen energy innovation platforms, and clarifies 3 supporting measures to push forward the development of the whole hydrogen energy production, storage, transmission, and utilization industry chain, thereby accelerating the formation of new productive forces. 》

Guotai Junan Securities states that with the issuance of local policy details and subsidies, the production and sales of FCVs (Fuel Cell Vehicles) are expected to continue to grow at a high rate. By 2024, the hydrogen energy and fuel cell industry will enter a phase of rapid expansion and acceleration.

CITIC Securities forecasts that looking ahead to 2024, the effect of government policies is expected to accumulate steadily, and the development of both FCEVs (Fuel Cell Electric Vehicles) and the green hydrogen industry chain is likely to accelerate, with industry expectations potentially being revised upward. According to the goals of the medium and long-term hydrogen energy development plan, the market scale of the hydrogen vehicle industry chain is expected to double consecutively in 2024/2025. The gradual implementation of emerging green hydrogen applications could drive the CAGR (Compound Annual Growth Rate) of electrolyzer demand to reach 75% from 2025 to 2030. Additionally, the domestic manufacturing advantage is expected to help equipment companies achieve large-scale overseas expansion by 2024.

UBS Securities: Petrochemical analyst Guo Yifan indicates that growth in some emerging areas will drive the demand for hydrogen energy. This mainly includes the use of hydrogen in commercial vehicles, carbon reduction in the steel industry, demand in the shipbuilding industry, the energy storage sector, and other areas. By 2060, it is expected that hydrogen energy will account for 12% of the total energy consumption and will play a very important role in the entire energy system. Hydrogen refueling stations are an essential part of the hydrogen infrastructure. Currently, China has the most hydrogen refueling stations in the world, with over 200 stations nationwide. Improving profitability of hydrogen refueling stations hinges on increasing turnover. If the turnover rate reaches 70% to 80%, the stations can generally become profitable. The core reason for the unprofitability or difficulty in making a profit currently is the insufficient number of hydrogen vehicles. In the future, as the ownership of hydrogen vehicles continues to increase, it is estimated that after 2025, at least 60% to 70% of hydrogen refueling stations nationwide will be able to achieve profitability.