Most popular Bloomberg China's hydrogen economy is

2022-08-09
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Bloomberg: China's hydrogen economy is coming.

China's success in building the battery power industry has made it a strong competitor in the next stage of decarbonization transportation. On March 23, Bloomberg, a world-renowned financial information company, published the article "China's hydrogeneconomy is coming". Nengchain specially translated this article and shared it with you

The king of electric vehicles in the world is also seeking the leadership of fuel cells

when the State Council of China held a press conference on March 15 to announce and explain the 83 amendments to the annual government work report, one of them, "promoting the construction of charging, hydrogenation and other facilities" attracted great attention from investors

since it is Friday, the stock market will not open. So on Monday, Chinese investors were ready: in the first few minutes of trading, the market value of fuel cell related stocks increased by more than $4billion, and several of them reached the daily limit and couldn't shake back and forth too much. Bullishness lasts for a whole week. In fact, it may last longer

in less than a decade, the Chinese government has used subsidies and other policies to create the world's largest electric vehicle market. This market is not without problems and restrictions, so the government is seeking diversified investment in carbon free transportation

fuel cell is a popular technology in other East Asian countries (as well as the United States), which is their preferred means. The ratio between the difference and the average outer diameter of the cable standard should not exceed 15%. Investors saw the opportunities brought by the support of battery electric vehicles and began to start early

like batteries, the electric energy generated by fuel cells can drive motors and vehicles. However, the general battery is large and heavy, which needs to be recharged through renewable resources

fuel cells, like batteries, can generate electricity to drive cars. But the similarity is basically nothing more. The battery is large and heavy, and must be charged. The electricity used comes from renewable resources, or it may not be

these are not thin plastered external insulation systems. In contrast, fuel cells rely on the chemical reaction between hydrogen and oxygen to generate electricity. They don't need to be charged. They only need on-board hydrogen storage tanks. They are lighter and can store much more energy than batteries (so their endurance mileage is longer)

compared with the battery car, which often takes several hours to be fully charged, the car using hydrogen fuel cell can complete fuel filling in a few minutes, which is closer to the traditional internal combustion engine car

of course, if it were so easy, hydrogen fueled vehicles would have occupied the market of battery powered vehicles (as well as internal combustion engines). However, several key bottlenecks of fuel cells hinder their development

first of all, fuel cells are the most expensive components in cars, which is one of the reasons why they are less competitive than battery electronic devices. For example, Toyota Mirai, a Japanese company's iconic fuel cell vehicle, sells for about $70000 (without subsidies). At the same time, the price of electric vehicles in China is less than 10000 US dollars

secondly, fuel cells are clean burning, but the hydrogen required by fuel cells is usually produced by fossil fuels (including coal). If the goal is to reduce carbon emissions, this is also a problem

third, hydrogen infrastructure. Everything from pipelines to hydrogenation stations is expensive and rare. In China, the cost of hydrogen refueling stations is about $1.5 million. This is a huge investment, not to mention the current number of fuel cell vehicles operated in China is less than 5000

in the late 21st century, China's desire to become a battery power superpower faces the same severe obstacles

at that time, electric vehicles hardly existed in China, there was no charging infrastructure, and there were almost no independent technologies or companies

until 2009, the Chinese government launched the "ten cities and one thousand cars" plan to promote the sales of electric vehicles through promotion and demonstration. Ten years later, with tens of billions of dollars in subsidies and extensive policy support, China has become the king of batteries in the world

can China replicate the feat of electric vehicles on hydrogen fuel cell vehicles? This is definitely something to try

as early as 2015, the Chinese government stated that it would use 1million fuel cell vehicles on its roads by 2030. With the commitment of companies and cities to vehicles, technology and infrastructure, the ambition and power of fuel cells rebounded last year

the first sign of industrial change in 2019 came in January, when China Securities reported that the government was preparing to restart the "top ten cities" plan for fuel cell vehicles

although this is not easy, China has several advantages over its competitors

first, it has policy stability (due to changes in political leadership, South Korea's hydrogen drive wavered in the mid-2000s)

secondly, a large amount of waste energy generated by China's world leading renewable energy industry can be used for other purposes (for example, waste electricity can be used to produce hydrogen)

its mechanical performance is stable and reliable. Finally, China has abundant financial resources and is willing to invest in infrastructure without a direct market, which indicates that it can realize its commitment to hydrogen refueling stations and related facilities

of course, success requires overcoming major technical and market barriers. China's success in building the battery power industry ensures that in the next stage of decarbonization transportation, even if it is not the ultimate leader, it is also a strong competitor. For Chinese investors, this is an industry worth investing in

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