China has opened its first long-distance hydrogen trucking route, a 1,150-kilometer highway linking key industrial zones, in a move that underscores the country’s ambitions to dominate the emerging hydrogen economy. State-owned energy giant Sinopec (China Petroleum & Chemical Corporation) developed the corridor, which is supported by four hydrogen refueling stations to service heavy-duty freight vehicles.
The project highlights China’s push to decarbonize long-haul trucking, where battery-electric solutions face limitations due to weight and charging constraints. The regions along the route produce over 400,000 tonnes of hydrogen annually – enough to power an estimated 360,000 hydrogen fuel-cell vehicles (FCEVs), according to state news agency Xinhua (source: Xinhua, June 2023).
Hydrogen’s Role in the Global Energy Shift
Hydrogen – particularly “green” hydrogen made from renewable-powered electrolysis – is seen as critical for cutting emissions in shipping, steelmaking, and heavy transport. China has classified hydrogen as a strategic industry, targeting 50,000 FCEVs by 2025 (source: China Hydrogen Alliance, 2022).
However, challenges persist:
- Cost: Green hydrogen remains 2-3 times more expensive than hydrogen derived from fossil fuels (source: IEA, 2023).
- Infrastructure gaps: Refueling networks outside China and parts of Europe remain underdeveloped.
- Production methods: Over 60% of China’s hydrogen still comes from coal gasification, raising emissions concerns (source: BloombergNEF, 2023).
Sinopec’s Hydrogen Strategy
Sinopec, China’s largest oil refiner, is pivoting toward hydrogen as part of Beijing’s carbon neutrality goals. The company plans to build 1,000+ hydrogen stations by 2030 and is developing a 260,000-tonne green hydrogen facility in Inner Mongolia (source: Sinopec official release, 2023).
The new trucking route is projected to handle 220,000 twenty-foot equivalent units (TEUs) of cargo annually, potentially proving hydrogen’s viability in freight logistics.
Global Hydrogen Race: Key Markets
While China expands its hydrogen infrastructure, other major economies are also investing:
- European Union: Aiming for 10 million tonnes of renewable hydrogen by 2030, with Germany and France leading in subsidies (source: EU Hydrogen Strategy,2023).
- United States: The Inflation Reduction Act (IRA) offers $3/kg subsidy for clean hydrogen, spurring investments from firms like Air Products and Plug Power (source: U.S. DOE, 2023).
- Japan & South Korea: Prioritizing hydrogen imports for transport and power generation (source: IEA Hydrogen Reports, 2023).
Challenges Ahead
Despite growth, obstacles remain:
- Cost competitiveness: Green hydrogen must fall below 2 kg to rival diesel (currently 4-6 kg).
- Scaling infrastructure: More refueling stations and pipelines are needed globally.
- Policy risks: Subsidies and regulations vary widely, creating market uncertainty.
Sinopec’s hydrogen highway signals China’s aggressive infrastructure rollout, but the global hydrogen economy’s success hinges on cost reductions, technological advances, and consistent policy support.
Sources :
- AIE (World Energy Outlook 2023)
- China Hydrogen Alliance (White Paper 2022)
- BloombergNEF (Hydrogen Economy Outlook)
- https://commission.europa.eu