The Ministry of Industry and Information Technology and two other departments have launched a pilot program to promote the comprehensive application of hydrogen energy.

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Release time:

2026-03-18

Notice of the Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission on Launching Pilot Projects for the Comprehensive Application of Hydrogen Energy

  MIIT Joint Circular No. 59 [2026]

  To the industrial and information technology authorities, finance departments (bureaus), and development and reform commissions of all provinces, autonomous regions, municipalities directly under the central government, cities separately listed for planning purposes, and the Xinjiang Production and Construction Corps, as well as to relevant central enterprises:

  To implement the decisions and arrangements of the CPC Central Committee and the State Council, and in accordance with the work plans set forth in the “Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021–2035)” and the “Implementation Plan for Accelerating the Clean and Low-Carbon Use of Hydrogen in the Industrial Sector,” the Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission (hereinafter collectively referred to as the Three Departments) are organizing pilot projects for the comprehensive application of hydrogen energy. These initiatives aim to drive cost reductions through large-scale deployment across multiple application scenarios, foster breakthroughs in hydrogen‑related technologies and equipment, and promote the high-quality development of the hydrogen energy industry. Relevant matters are hereby notified as follows:

  I. General Requirements

  In accordance with the principles of application‑driven development, scenario‑based deployment, site‑specific adaptation, and coordinated collaboration, pilot projects in urban agglomerations will expand hydrogen‑energy applications from fuel‑cell vehicles to other eligible sectors such as transportation and industry, thereby enhancing the capacity for supplying clean, low‑carbon hydrogen. These initiatives will address key technological bottlenecks in hydrogen‑energy applications, break through industrial‑development constraints, and establish multiple replicable, scalable commercial deployment models. The goal is to build an economical, rational, and efficient integrated hydrogen‑energy system and foster a favorable industrial ecosystem. Through a “challenge‑based leadership” approach, three government departments will select urban agglomerations with strong industrial foundations, diverse application scenarios, robust hydrogen‑resource security, and complete value chains to spearhead comprehensive hydrogen‑energy pilot programs. This will enable the scientific, orderly, and proactive exploration of pathways toward the commercialization of integrated hydrogen‑energy applications, refine the policy framework supporting industry development, and promote the seamless, integrated advancement of the entire hydrogen‑energy value chain—covering production, storage, transportation, and end‑use.

  By 2030, hydrogen energy will achieve large-scale deployment across diverse sectors within urban agglomerations, with the average end‑use price of hydrogen falling below RMB 25 per kilogram and, in select leading regions, approaching RMB 15 per kilogram. Nationwide, the stock of fuel cell vehicles will double compared to 2025, aiming to reach 100,000 units. By scaling up applications, we will drive breakthroughs in hydrogen‑related technologies, processes, and equipment, enabling iterative upgrades of fuel cells, electrolyzers, storage and transportation systems, and key materials. This will help establish hydrogen energy as a new engine for economic growth and support a comprehensive green transformation of economic and social development.

  II. Pilot Tasks

  Each urban agglomeration should prioritize the selection of eligible application scenarios—such as fuel cell vehicles, green ammonia and methanol, hydrogen‑based chemical feedstock substitution, hydrogen‑based metallurgy, and hydrogen‑blended combustion—to launch pilot projects. At the same time, they should actively explore innovative applications of hydrogen energy, thereby establishing a comprehensive hydrogen‑energy ecosystem characterized by “one universal scenario for fuel cell vehicles, N industrial‑sector application scenarios, and X innovative application scenarios” (detailed requirements and baseline targets for each scenario are provided in Annex 1).

  (1) Fuel cell vehicles. Centered on the development of hydrogen‑powered highways and hydrogen corridors, this initiative will prioritize the large‑scale deployment of commercial vehicles in medium‑ and heavy‑duty applications, long‑distance transport, and cold‑chain logistics. It will also encourage the use of fuel cell vehicles in public passenger transport, urban logistics, municipal sanitation, and construction waste transportation, while exploring their adoption in private passenger vehicles such as official cars and ride‑hailing services.

  (2) Green ammonia and green methanol. Centered on enhancing the techno-economic viability of green ammonia and methanol technologies and expanding downstream consumption, we will innovate production technologies and processes, and promote large-scale production and application. We will integrate renewable‑energy‑based hydrogen production projects and, where appropriate, develop off-grid hydrogen production. Stable downstream channels for the absorption of green synthetic ammonia, green methanol, and other such products will be established. The construction of coal‑based ammonia and methanol projects under the guise of “green” is strictly prohibited.

  (3) Substitution of hydrogen-based chemical feedstocks. Centered on advancing carbon reduction in key hydrogen‑intensive sectors such as refining and coal‑chemicals, we will systematically develop renewable‑energy‑based hydrogen production projects to gradually replace existing fossil‑fuel‑derived hydrogen produced from coal and natural gas. We will also encourage the deployment of hydrogen storage and transportation infrastructure.

  (4) Hydrogen-based metallurgy. Centered on transitioning the steel industry from high‑carbon to low‑carbon processes, this approach leverages locally available clean, low‑carbon hydrogen sources—such as industrial by‑product hydrogen and hydrogen produced from renewable energy—to build low‑carbon metallurgical facilities that use hydrogen‑rich or pure hydrogen gas as the reducing agent. It also establishes stable downstream demand channels for low‑carbon steel and other related products.

  (5) Hydrogen‑blending combustion. With the overarching goal of advancing the green and low‑carbon transformation of industrial and residential heat supply, and while ensuring safety and reliability, we will promote the use of hydrogen produced from renewable energy as a high‑quality heat source, directly blending it into natural gas pipelines or into industrial boilers, kilns, and other equipment, and gradually increasing the hydrogen‑blending ratio.

  (6) Innovative Application Scenarios. Centered on exploring diversified applications of hydrogen energy, we will promote its innovative deployment in areas such as rail locomotives, marine vessels, mining trucks, forklifts, two-wheeled vehicles, aircraft, backup power systems, combined heat and power, next-generation energy storage, electronics, and pharmaceuticals.

  III. Pilot Application and Selection

  (1) Applying Entities. Pilot projects for the integrated application of hydrogen energy shall be submitted on a city-cluster basis. Applicant city clusters shall, in accordance with the principles of “geographic connectivity, industrial synergy, and ecological closed-loop,” form voluntary alliances and jointly designate a lead city through consultation.

  (2) Eligibility Criteria. The specific eligibility criteria are as follows:

  1. Urban agglomerations should have well-defined hydrogen‑energy application scenarios, robust capabilities to secure clean, low‑carbon hydrogen resources, a solid industrial‑chain foundation, a favorable policy and institutional framework, and relatively mature experience in hydrogen‑energy applications.

  2. Urban agglomerations should fully leverage the leading role of flagship enterprises in supporting and catalyzing the development of hydrogen energy infrastructure and application scenarios.

  3. The leading cities of urban agglomerations should strengthen resource integration, reinforce policy support, and ensure efficient organization and coordinated management of the agglomeration.

  4. Urban agglomerations should treat the deployment of fuel-cell vehicles as a mainstream application scenario, and, based on local industrial foundations and distinctive features, tailor application contexts to suit regional conditions, thereby fostering an application ecosystem characterized by coordinated synergy and complementary development across different scenarios.

  5. Urban agglomerations should leverage their own resource endowments, adopt approaches tailored to local conditions, and prioritize hydrogen where appropriate, while avoiding a rush to deploy across all sectors and preventing low‑level, redundant infrastructure development.

  6. Urban agglomerations shall ensure that the construction and operation of relevant projects comply with national laws and standards pertaining to safety, energy conservation, environmental protection, and quality.

  (3) Selection Process. The lead city shall convene the other cities to jointly develop a pilot work plan for the comprehensive application of hydrogen energy within the urban cluster, clearly defining the overall objectives for such applications, as well as detailed annual targets, city‑specific goals, and scenario‑based tasks (see Annex 2 for the outline of the work plan). The lead city shall sign cooperation agreements with the other cities, specifying their respective task assignments and functional roles. The other cities shall submit letters of commitment to the lead city, ensuring that they will fulfill their assigned objectives. The provincial departments of industry and information technology, finance, and development and reform in the lead city’s jurisdiction shall provide guidance on the submission process, oversee the optimization of the urban cluster’s composition, functional positioning, and task allocation, and ensure that the cluster’s structure, objectives, and supporting measures are scientifically sound, reasonable, and feasible. Eligible urban cluster work plans and submission documents shall then be submitted through the Hydrogen Energy Comprehensive Application Pilot Management Service Platform (www.hydrogen-china.org.cn) to the three ministries. The deadline for submitting pilot materials for 2026 is April 15, 2026.

  The three departments have commissioned third-party institutions to conduct a comprehensive review of eligible application proposals and issue review opinions. The applicant city clusters shall, based on these review opinions, revise and refine their proposals; upon approval by the provincial-level departments of industry and information technology, finance, and development and reform in the location of the leading city, the proposals shall be submitted to the three departments. The three departments will then review the revised proposals and, on a merit‑based basis, designate five city clusters, with implementation proceeding as each proposal matures.

  IV. Award Criteria

  The central government will adopt a “reward‑in‑lieu‑of‑subsidy” approach to provide incentive funding to urban agglomerations. The reward criteria will be tiered based on the deployment of end‑use hydrogen products in each application scenario or on the scale of hydrogen consumption (detailed funding standards are set out in Annex 3). Each urban agglomeration will undergo a four‑year pilot period, with a maximum annual incentive cap of RMB 1.6 billion per agglomeration. These funds shall be centrally managed by local authorities to support the comprehensive application of hydrogen energy and may not be used for budget balancing, repayment of government debt, settlement of outstanding payments to enterprises, or any other purposes. Each urban agglomeration is expected to maximize the effectiveness of the incentive funds, substantially reduce hydrogen‑related costs, and ensure that these cost reductions are effectively passed on to the end‑use market.

  V. Performance Evaluation and Fund Disbursement

  At the conclusion of each pilot year, the lead city of each urban agglomeration shall, within 30 days, compile and summarize the previous year’s progress, the status of task‑target completion, existing challenges, and future work plans, along with detailed information on the deployment of end‑use products in various application scenarios and the scale of hydrogen utilization, and prepare a self‑evaluation report. Following review and approval by the provincial departments of industry and information technology, finance, and development and reform where the lead city is located, the self‑evaluation report shall be submitted to the three ministries. The three ministries will commission third‑party agencies to conduct performance evaluations of the urban agglomerations through document review, on‑site inspections, field verification, expert assessments, and by integrating data from the Comprehensive Hydrogen Energy Application Pilot Management Service Platform, and will issue a corresponding performance evaluation report. In accordance with the “advance allocation followed by final settlement” approach, upon approval of a pilot urban agglomeration, the central government will allocate an initial tranche of incentive funds to support the launch of comprehensive hydrogen energy application pilot projects. At the end of each pilot year, the three ministries will calculate incentive points based on the annual performance evaluation results of the urban agglomeration (with a standard rate of RMB 80,000 per point). Upon completion of the policy implementation, the final settlement of incentive funds will be carried out according to the overall performance evaluation outcomes of the urban agglomeration. Projects that have already received fiscal support—such as ultra‑long‑term special treasury bonds, central budgetary investment, or government special-purpose bonds—in the hydrogen energy application phase shall not be eligible to reapply for funding under this pilot program.

  VI. Organization and Implementation

  Provincial-level authorities should assume a coordinating role, guiding urban agglomerations to clarify their functional positioning and division of labor, establishing mechanisms for inter‑city communication, coordination, and organization, and formulating internal oversight and performance‑evaluation systems along with appropriate punitive measures. They should also foster a favorable policy and institutional environment to ensure the effective implementation of pilot initiatives. Urban agglomerations, as the primary entities responsible for hydrogen‑energy integrated application pilots, are required to set up leading groups and dedicated task forces, clearly define responsibilities and assign specific tasks, and drive the timely completion of all project objectives. A robust safety management system must be established, with designated departments assuming specific accountability, so that pilot activities can proceed on the basis of ensuring safety. Pilot cities are encouraged to proactively introduce supportive policies and increase funding for research and development of key technologies and equipment in hydrogen production, storage, transportation, and utilization. Upon receiving central government financial incentives, local authorities should disburse these funds promptly in accordance with applicable regulations. Furthermore, the policy and institutional framework should be refined, with comprehensive measures for the construction and operation of hydrogen‑energy infrastructure put in place, and facilitative policies—such as those governing the cross‑city circulation of fuel‑cell vehicles—promoted. Local governments are also urged to strengthen coordination between fiscal and financial instruments and to encourage enterprises to align their efforts with policies such as interest subsidies for loans to service‑sector operators, thereby providing diversified financing support for hydrogen‑energy integrated application pilots.

  VII. Supervision and Management

  The three departments will strengthen process‑level guidance for the hydrogen‑energy integrated application pilot program, organizing third‑party institutions and industry experts to provide end‑to‑end technical support and ongoing oversight, while reinforcing performance management and implementing milestone‑based controls. City clusters are required to upload relevant data and information on hydrogen‑energy integrated applications to the pilot management service platform as mandated. For city clusters whose progress falls short of expectations, the three departments may, depending on the circumstances, take measures such as requiring adjustments to the work plan, reducing or suspending incentive funding, suspending participation by certain cities, or revoking the city cluster’s pilot status. Furthermore, the three departments will, taking into account technological advancements, pilot progress, and broader industrial development trends, regularly refine the technical specifications for each application scenario and, as appropriate, adjust the pilot objectives, application areas, and the composition of city clusters.

  Contact Information:

  Energy Conservation and Comprehensive Utilization Department, Ministry of Industry and Information Technology 010-68205354

  Economic Construction Department, Ministry of Finance 010-68554740

  Innovation and High-Tech Development Department, National Development and Reform Commission, 010-68502582

  Attachment: 1. Application Requirements and Baseline Targets for the Hydrogen Energy Comprehensive Application Pilot Project

  2. Outline for the Preparation of the Pilot Work Plan on the Comprehensive Application of Hydrogen Energy

  3. Funding Support Standards for Hydrogen Energy Comprehensive Application Pilot Projects

  Ministry of Industry and Information Technology

  Ministry of Finance

  National Development and Reform Commission

  March 6, 2026

  Original article link: https://wap.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2026/art_d2957277c4684eb59c0c0de01af59434.html

  (Source: Ministry of Industry and Information Technology)


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