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Zhang Qingsheng's Proposal: Increase Support for Green Hydrogen to Promote High-Quality Development of the Industry Chain

JiGongMei Sat, Mar 09 2024 03:12 PM EST

In the modern industrial system, the development of the green hydrogen industry is of great significance for promoting green and low-carbon transformation and achieving sustainable development. On the occasion of the convening of the 2024 National People's Congress, Zhang Qingsheng, a national People's Congress representative and Executive Director of China Petroleum Exploration Bureau Central Plains Petroleum Exploration Bureau Co., Ltd., stated in an interview that he suggests the country to increase guidance and support for the development of the green hydrogen industry, formulate specific support policies for green hydrogen, enhance the independent development of the green hydrogen industry, standardize and streamline approval processes, and promote high-quality development of the industry chain.

Hydrogen energy is considered one of the most promising clean energy sources of the 21st century. The International Energy Agency (IEA) predicts that hydrogen will account for 10% of global energy consumption by 2050. According to the "Outlook for China's Hydrogen Energy Industry" by the Economic and Technological Research Institute of Sinopec, it is forecasted that by 2060, China's hydrogen consumption will reach 86 million tons under the baseline scenario, 102 million tons under the high scenario, and 75 million tons under the low scenario.

Zhang Qingsheng stated that compared to grey and blue hydrogen, green hydrogen has environmental advantages. However, overall, the development of green hydrogen is still in its early stages, facing challenges such as high production costs, weak market competitiveness, inadequate policy subsidies, and complex approval processes.

To address this, Zhang Qingsheng suggests the following:

  1. Introduce national subsidy policies specifically for green hydrogen to encourage and support its development, reflecting the decarbonization and clean value of green hydrogen, and encouraging the development of the green hydrogen industry chain. Provide tax incentives, explore the establishment of a national green hydrogen trading platform, include green hydrogen CCERs (Carbon Credits for Emission Reduction) in market trading varieties, and propose subsidies for green hydrogen projects with advanced technology and low energy consumption based on the actual sales volume of green hydrogen from the supply side.

  2. Support comprehensive localization research and development of green hydrogen equipment, introduce policies for renewable electricity surplus grid connection to reduce production costs of green hydrogen. Promote the independent research and development and large-scale application of green hydrogen technology, form competitive tens of thousands and hundreds of thousands of tons of renewable energy hydrogen production and industrial carbon reduction technologies, and reduce investment costs of green hydrogen equipment. Encourage the use of distributed photovoltaics and wind power for hydrogen production, propose policies for renewable energy hydrogen projects to enjoy "surplus green electricity grid connection with electricity supplementing hydrogen" and priority grid connection for self-generated green electricity, and guide more renewable energy quotas to tilt towards industrial transformation and development areas, such as imposing policy requirements on newly-built hydrogen projects for refining, stipulating that the usage rate of green hydrogen in raw material hydrogen shall not be lower than a certain level.

  3. Introduce national green hydrogen safety management measures to promote the construction of green hydrogen infrastructure. It is suggested to relax the safety permit policy for green hydrogen, change the management of green hydrogen from hazardous chemicals to energy management, introduce supervision standards and corresponding norms, and promote the healthy development of the industry. At the national level, clarify the competent authorities for hydrogen energy, coordinate the development of domestic hydrogen energy business and international hydrogen energy industry cooperation, streamline approval processes, reduce regional restrictions, encourage enterprises and social capital to invest in the construction of hydrogen refueling stations, and form a widespread network of hydrogen refueling stations.