Shanxi’s Lüliang hydrogen energy industry is advancing from “pilot‑driven breakthroughs” to “large‑scale scaling-up.”

Pengfei Hydrogen-Powered Heavy-Truck Fleet. Photo by Li Quanming, All-Media Reporter for Shanxi Economic Daily.

  “An assembly line capable of producing 6,000 hydrogen‑powered commercial vehicles annually has been completed; 14 hydrogen refueling stations have been put into operation; a hydrogen‑production capacity of 135,000 tonnes has been established; the clean, low‑carbon, high‑purity hydrogen project was selected as one of the first national pilot initiatives in the energy sector; and the number of hydrogen‑fuel‑cell heavy trucks in operation has surpassed 1,000, making Lüliang the only city in the province to be included in the national fuel‑cell vehicle demonstration cluster…” This array of figures vividly outlines the full‑chain development trajectory of Lüliang’s hydrogen industry—spanning technological R&D to production capacity deployment, and from infrastructure support to market‑driven application and promotion. Once a resource‑dependent city whose economy was anchored by black energy, Lüliang is now leveraging forward‑looking policy frameworks and robust market dynamism to stage a remarkable transformation on the hydrogen‑energy track.
Standing at the outset of the 15th Five-Year Plan, the city’s government work report explicitly calls for accelerating the construction of projects such as Pengfei’s 10,000 standard cubic meters per hour high-purity hydrogen facility, and striving to attract CIMC Group’s hydrogen‑energy equipment manufacturing project. The city will continue to expand application scenarios, systematically promote the replacement of conventional trucks with hydrogen‑powered heavy‑duty vehicles in road transport, develop green corridors for hydrogen‑based freight logistics, deepen the deployment of demonstration projects for municipal vehicles, and advance the substitution of hydrogen‑fuelled vehicles in urban sanitation services. These measures clearly underscore Lüliang City’s unwavering commitment to tackling the challenges of the hydrogen‑energy industry and driving a green transformation.

The favorable policy environment has given enterprises greater confidence in their transformation.

        As a major national coking‑industry hub, Lüliang boasts an annual coke production capacity of nearly 40 million tons, with hydrogen accounting for 55% of the by‑product coke oven gas—providing a stable, low‑cost hydrogen supply base for the hydrogen economy. “We are not engaging in blind herd behavior; instead, we are pursuing a diversified strategy centered on ‘coal‑coking‑derived hydrogen plus green‑hydrogen development,’ ensuring that our transformation rests on solid foundations while charting a clear long‑term vision,” said an official from the city’s Bureau of Industry and Information Technology. Lüliang has already released the “Medium‑ to Long‑Term Development Plan for the Hydrogen Energy Industry (2022–2035),” allocates no less than RMB 100 million annually in dedicated subsidies, and has established a dedicated task force to advance a full‑chain industrial layout spanning “production–refueling stations–transportation–vehicles–applications.” The plan sets ambitious targets: by 2030, hydrogen production capacity will exceed 500,000 tons, and the total output value of the hydrogen‑related industrial chain will surpass RMB 100 billion.
With the support of a series of policies, the industrial by-product that would otherwise have been vented at Pengfei Group’s coke‑oven gas‑to‑hydrogen plant is now purified and pressurized to produce high‑purity hydrogen with a purity of 99.999%. The overall production cost has been kept at around RMB 8 per kilogram, significantly below the national average. “This is not merely a technological upgrade; it is a fundamental reshaping of our production logic,” says Shi Zhilin, who has spent 15 years deepening expertise in coal‑coking informationization. Leading his team, he leveraged an industrial Internet platform to integrate data from siloed, “chimney‑style” systems, boosting production execution efficiency by 21% and achieving a 95% accuracy rate in AI‑driven equipment‑fault early warning.

The “chain‑leader effect” drives the agglomeration and development of enterprises within the supply chain.

      Amid the surging momentum of the hydrogen energy industry, Lüliang is achieving leapfrog breakthroughs through a full‑chain industrial strategy. Pengfei Group has established an end‑to‑end production line covering fuel cell stacks, power systems, and the final assembly of hydrogen‑powered heavy trucks; Meijin Group has launched a project to assemble 1,000 hydrogen‑powered commercial vehicles annually; and Hylan Technology is focusing on core power components, building a fuel cell engine production line to address critical gaps in key industrial parts. The successful commissioning of these flagship projects marks Lüliang’s achievement in seamlessly integrating the entire value chain—from R&D and manufacturing of core hydrogen‑energy components to complete vehicle assembly—signaling a pivotal step forward in localizing the industry.
To date, Lüliang’s hydrogen fuel cell vehicles have gradually achieved routine operations in trunk‑line transportation and mining‑site operations, fostering a robust, coordinated development across the entire “production–storage–transportation–use” value chain and injecting strong momentum into regional energy‑structure optimization and manufacturing‑sector upgrading.

A mature industrial system enables enterprises to establish a solid foothold in the market.

       Recently, at the Beiyao Hydrogen‑Recharging Integrated Energy Island in Xiaoyi City, a reporter observed four hydrogen‑powered heavy trucks, each fully loaded with coal, completing their hydrogen refueling. Driver Guo Chaohui said, “Hydrogen refueling takes just 15 minutes and provides a range of 600 kilometers—far more economical than diesel trucks—and it produces zero emissions!” At his command, the convoy slowly pulled away, heading for Tianjin Port, 760 kilometers away.
Shanxi Dahuatong Logistics Company has acquired 600 hydrogen‑powered heavy-duty trucks in a single procurement, establishing a dedicated hydrogen‑fuel‑cell freight fleet. According to the company’s head, Hao Guanbing, “Each hydrogen‑powered truck covers roughly 150,000 kilometers annually. When factoring in current hydrogen prices and operating costs—along with local government incentives for demonstration projects and special subsidies for highway tolls—each vehicle can save between RMB 80,000 and 100,000 per year compared to a conventional diesel‑powered heavy truck.” In addition, Shanxi Zefengda New Energy Co., Ltd. has developed an integrated natural‑gas‑based helium‑extraction and hydrogen‑production project, offering a new, economically viable and safe solution for long‑distance hydrogen transport. Meanwhile, in Lüliang’s urban area, the deployment of hydrogen‑electric shared bicycles has allowed ordinary residents to experience firsthand the convenience that hydrogen energy brings.
Wheels roll on, carrying Lüliang’s vision of transformation; hydrogen surges forward, illuminating the green future of this resource‑dependent city. Nestled at the foot of the Lüliang Mountains, this “Hydrogen Capital” is setting sail on the wave of the energy revolution, with policies as its sails and innovation as its oars, writing a new chapter of high‑quality development.

//Reporter’s Notes

Where the “hydrogen” wave is surging, transformation is at its peak.

      On January 20, at the venue of the Sixth Session of the Fourth People’s Congress of Lüliang City, when Mayor Xiong Yizhi mentioned the development of the hydrogen energy industry in his government work report, the ensuing round of enthusiastic applause left reporters deeply impressed by this resource‑dependent city’s unwavering determination to move forward on the path of hydrogen. Over three consecutive days of covering the Two Sessions, from the strategic visions outlined in the reports to the lively discussions and constructive proposals put forth by deputies and committee members, and from the practical explorations of leading enterprises in the industrial chain to the subtle yet tangible changes taking place in everyday life, reporters gained an increasingly clear understanding of the “Lüliang Logic” behind the transformation of a resource‑based city: guided by sound policies, driven by industrial development, and rooted in improving people’s livelihoods, it is riding the wave of the energy revolution to paint a new picture of high‑quality development.
During the Two Sessions, “hydrogen energy” remained a frequently discussed topic. The Government Work Report explicitly called for concerted efforts across three key areas—hydrogen, vehicles, and energy—while accelerating the construction of Pengfei’s 10,000 standard cubic meters per hour high-purity hydrogen project, striving to bring CIMC Group’s hydrogen‑energy equipment manufacturing initiative to fruition, and continuously expanding application scenarios for hydrogen‑powered heavy trucks, sanitation vehicles, and other uses. The policy measures and constructive proposals put forward at the conference outline a clear roadmap for Lüliang’s hydrogen‑energy industry as it transitions from “pilot‑driven breakthroughs” to “large‑scale advancement.”
Fueled by the policy consensus at the conference, a visit to the front lines of Lüliang’s industries further underscores the tangible results of its transformation. At Pengfei Group’s hydrogen‑production workshop, coke‑oven gas—once regarded as industrial waste—is purified and processed into high‑purity hydrogen with a purity of 99.99%, at a cost of just 8 yuan per kilogram, far below the national average. Meanwhile, Shi Zhilin’s team, which has been deeply engaged in coal‑coking‑related information technology for 15 years, has developed an intelligent production system in three years that achieves a 95% accuracy rate in predicting equipment‑related risks. The launch of Meijin Group’s project to assemble 1,000 hydrogen‑powered commercial vehicles annually, along with Hydrogen Lan Technology’s fuel‑cell engine production line, further demonstrates the agglomeration effect of a “dual‑chain‑driven, full‑value‑chain layout”—from core components to complete vehicle assembly, from hydrogen‑refueling station construction to real‑world applications. Lüliang has now established a fully integrated industrial chain, breaking free from the predicament of emerging industries developing in isolation.
With the conclusion of the Two Sessions, the momentum behind hydrogen energy is stronger than ever. The burgeoning hydrogen economy in the mountains of Lüliang stands as both a vivid demonstration of policy implementation and a resolute response to the transformation of a resource‑dependent city. As the integrated “fire–wind–solar–hydrogen” multi‑energy complementary system accelerates its development and more industrial‑chain projects take root, this “Hydrogen Capital” is sure to gain further traction during the 15th Five-Year Plan period, offering a replicable and scalable “Lüliang Model” for the nationwide hydrogen industry.

Li Quanming, All-Media Reporter, Shanxi Economic Daily

Source: Shanxi Economic Daily