(Originally published on 03/13/2015)

On March 13, UNDP China discussed a potential cooperation opportunity in Accelerating the Development and Commercialization of Fuel Cell Vehicles in China Project with representatives from Toyota and AirLiquid. The private sector is seen as being the primary driver of progress in facilitating fuel cell vehicles (FCVs)’s commercialization in China.

Given that China is the world’s top producer and consumer of primary energy and top greenhouse gas emitter and the transport sector accounts for 10 to 15 percent of the energy consumption, China is expected to become the world’s largest new energy vehicle (NEV) market. For the development of green, low carbon FCV, this is a challenging task but one full of possibilities.  

Compared with traditional clean ­energy like natural gas, hydrogen which fuels the FCV, has great advantages like energy efficiency and zero emissions. While only 13 percent of natural gas can be effectively converted to energy, more than 40 percent of hydrogen can be utilized with nothing but water emissions. Hence hydrogen can generate more power and protect the environment at the same time.

Mr. Zhang Weidong, UNDP Programme Manager, emphasized that, advancing fuel cell technology through the future roadmap of FCV development has become a government priority in the 13^th Five-Year Plan. This project is closely aligned with China’s national policy and so has great strategic importance.

However, to realize the commercialization of FCV in China, barriers such as lack of FCV technology, hydrogen infrastructure, policy, awareness and information as well as operation and manufacture (O&M) and financial sector capacity need to be addressed.

Professor Ouyang Minggao, a Standing Committee Member of the Chinese People’s Political Consultative Conference (CPPCC) who is in charge of the new energy vehicle’s strategic planning in the 13^th Five Year Plan, pointed out that active participation of domestic and international manufactures would give the local government stronger faith in the future of FCV. This includes participation from energy industry’s leading force Airliquid and China Shenhua.

 “We hope to introduce the advanced technology of FCV in China, in turn strengthening government and general public’s perception of FCVs,” said Mr. Zhang Jinhua, the National Expert of this project and Executive Vice President of Society of Automotive Engineers of China (SAC).

Recently Toyota announced that they allowed global manufactures to use about 5680 FCV-related patent license without royalty, in efforts to engage more car manufactures into the market. Mr. Taiyo Kawai, Project General Manager of Toyota, said that there were many lessons learned during the road testing process of the new FCV Mirai, and they are willing to share that experience with China through this project.

In addition to Toyota, international automobile manufactures like Mercedes-Benz, BMW and General Motors (GM) have been reached out to discuss about their participation in the project. Mr. Zhang Jinhua believes with support from the private sector, a successful business model for the FCV which is low carbon and low cost can be established. “We hope this project helps realize the benefits of FCVs.”