NPC Delegate Discusses Hydrogen at the Two Sessions

The 2024 Government Work Report prominently emphasized: accelerating the development of cutting-edge emerging industries such as hydrogen energy, new materials, and innovative pharmaceuticals, while actively fostering new growth engines in areas like bio-manufacturing, commercial aerospace, and the low‑altitude economy. Notably, the inclusion of “accelerating the development of the hydrogen energy industry” in the Government Work Report marks the first time this has been stated, with hydrogen energy ranked first among emerging industries.

In tandem, according to Hydrogen Cloud Chain— which has been tracking hydrogen‑related proposals at the Two Sessions for six consecutive years—by the second day of this year’s National People’s Congress and Chinese People’s Political Consultative Conference, 15 suggestions on the development of the hydrogen energy industry had already been submitted. These cover four key areas: expanding the application of green hydrogen, broadening the scope of fuel‑cell vehicle demonstration city clusters, strengthening top‑level design, and fostering a robust industrial ecosystem. In addition, there are proposals addressing the refinement and implementation of regulatory and subsidy policies, the development of marine hydrogen energy, and the expansion of international cooperation in the hydrogen sector.

On the evening of March 10, during a live broadcast on the Two Sessions economic policy hosted by Beijing News’ Shell Finance, National People’s Congress deputy Li Huiyi—Vice Chair of the Shanxi Provincial Committee of the China National Democratic Construction Association, Vice Chair of the Lüliang Municipal Committee of the Chinese People’s Political Consultative Conference, and Chair of the Lüliang Municipal Committee of the China National Democratic Construction Association—stated that, as the world moves toward carbon neutrality, hydrogen energy is a crucial zero‑carbon secondary energy source with vast potential for development across power generation, industry, and transportation. As a major energy and industrial hub, Shanxi Province boasts abundant and cost‑effective hydrogen‑production resources, including coal, coke oven gas, natural gas, and renewable energy. In Lüliang alone, there are 160 million tons of coal, 38 million tons of coking capacity, and 3.5 billion cubic meters of unconventional natural gas production capacity, while the installed capacity of new‑energy “green electricity” stands at 283 megawatts. The region thus possesses distinct advantages for integrated development of four key pathways: coal‑gasification‑based hydrogen production, industrial‑byproduct‑based hydrogen production, natural‑gas‑based hydrogen production, and electrolysis‑based hydrogen production—characterized by rich resources, diversified methods, and low costs.

Li Huiyi proposed that the state expand the existing fuel-cell vehicle demonstration city clusters and support Lüliang City in leading a joint application, together with Taiyuan, Changzhi, Datong, and Linfen, to establish a national fuel-cell vehicle demonstration and application city cluster, thereby providing diversified pathways for national energy security and industrial development.

As a deputy to the National People’s Congress hailing from the Lüliang Mountains, Li Huiyi is a scholar‑turned‑official who combines grassroots experience with forward‑thinking vision and has long been committed to energy transition. Since China unveiled its new energy security strategy of “Four Revolutions and One Cooperation,” Li Huiyi has frequently visited the NPC deputies’ liaison station at the Lüliang City Clean Energy Base, using the hydrogen‑energy development trajectory of Shanxi Pengfei Group—one of China’s Top 500 enterprises and among the nation’s top 100 private firms—as a case study to conduct in‑depth research and hold roundtable discussions. In particular, by leveraging his role as Vice Chairman of the Lüliang Municipal Committee of the Chinese People’s Political Consultative Conference, he helped elevate “actively fostering the hydrogen energy industry to comprehensively promote high-quality development” to a key agenda item for both the provincial and municipal CPPCCs. At his initiative, within less than two years, the provincial and Lüliang municipal CPPCCs established dedicated task forces and organized more than a hundred CPPCC members to visit Pengfei Group for on-site research into hydrogen‑energy development. While commending Pengfei’s focused efforts to explore a transformative shift toward “hydrogen as a versatile enabler,” they also took proactive steps to review, steer, and guide the group’s strategic direction, planning, and implementation measures in the hydrogen‑energy sector, putting forward numerous insightful and far-sighted recommendations that have received high attention from the provincial Party committee and government, as well as from the Lüliang municipal Party committee and government.

Since 2021, Lüliang City has implemented a “One Core, Two Wings, Three Ports, Four Chains” strategy, aiming to build a complete industrial chain encompassing hydrogen production, storage, transportation, refueling, and end‑use applications. The “One Core” refers to establishing Lüliang as a hundred-billion‑yuan‑scale hydrogen hub and developing it into a northern hydrogen energy industry base. The “Two Wings” leverage the two leading enterprises—Shanxi Pengfei and Meijin—to vigorously advance the hydrogen energy sector. The “Three Ports” involve building ports for hydrogen supply, technological R&D, and equipment manufacturing. The “Four Chains” comprise four major value chains: hydrogen production from coke oven gas, natural gas reforming, coal gasification, and water electrolysis. At present, Lüliang has achieved an annual hydrogen production capacity of 75,000 tonnes, with 11 hydrogen refueling stations in operation, 500 hydrogen‑powered heavy‑duty trucks on the road, a production line capable of manufacturing 1,000 hydrogen‑fuel cell commercial vehicles per year now up and running, and six intercity hydrogen‑powered minibus passenger services already in service, marking the initial formation of a comprehensive “gas–station–transport–vehicle” industrial ecosystem. Meanwhile, the hydrogen energy industries in Taiyuan, Datong, Changzhi, and Linfen have also made significant strides, giving the province as a whole a strong competitive edge in this field.