Chinese coal hub emerges as hydrogen energy pioneer

Xiaoyi, a prominent coal hub in northern China, is evolving into a hydrogen energy pioneer as the resource-depleted city seeks new growth engines.

In late May, three hydrogen-powered trucks departed from Xiaoyi in coal-rich Shanxi Province, traveling over 700 kilometers before successfully delivering their coal cargo to Tianjin Port.

"This marks a milestone," said Zheng Peng, chairman of Pengfei Group, the manufacturer of these hydrogen-fueled heavy trucks. "They reopened the road transport route to Tianjin Port, which stopped receiving coal transported by road seven years ago due to environmental concerns."

Pengfei Group recently secured an order for 500 hydrogen-powered heavy trucks, each priced at 1.07 million yuan (about 150,400 U.S. dollars). From 2025 to 2028, the company plans to deploy at least 1,000 trucks annually.

Previously, Xiaoyi had introduced 200 hydrogen-powered heavy trucks to its key industrial enterprises, with each truck averaging over 100,000 kilometers in mileage.

Although hydrogen production, storage, and transport remain costly, hydrogen-powered heavy trucks are becoming more common in commercial use due to their fixed routes, which make it easier to establish refueling stations and thus more economically viable.

Local officials are optimistic that technological advancements and an improved industrial chain will reduce the production costs of hydrogen-powered heavy trucks, potentially reaching parity with diesel trucks within two to three years.

Home to fewer than 500,000 residents, Xiaoyi is a traditional industrial city with a coal production capacity of 31.3 million tonnes in 2022. Approximately 70 percent of its GDP was derived from industry.

"Hydrogen energy, as a representative of new quality productive forces in the energy sector, has strong momentum and promising prospects," said Guo Qingzhi, mayor of Xiaoyi.

"With the city's substantial industrial economy, the potential for expanding industrial applications of hydrogen energy is vast," echoed vice mayor Xue Zhiqiang.

Hydrogen energy was highlighted in China's government work report this year for the first time as a crucial emerging industry, as the country seeks to meet its carbon-emission targets.

According to a report by Sinopec Group, China's major oil refiner, the country's hydrogen energy consumption is projected to reach nearly 86 million tonnes by 2060, with an industry scale of 4.6 trillion yuan.

China aims to have 50,000 hydrogen fuel-cell vehicles on the road by 2025, a government plan on the hydrogen sector noted. And the number is estimated to rocket to one million by 2035, according to the China Society of Automotive Engineers.

Xiaoyi is not alone in promoting hydrogen energy. China's largest green hydrogen production and refueling station has been established in Changsha, Hunan Province, and the world's first hydrogen-powered urban train, developed by CRRC Changchun Railway Vehicles Co., Ltd., completed its inaugural run at a speed of 160 kilometers per hour in Jilin Province.

"As a coal-rich province, Shanxi has a natural cost advantage in hydrogen production," said an official from the provincial industry and information technology department.

Xiaoyi's hankering to harness the power of hydrogen has expanded to bikes and buses. In late April, 500 shared hydrogen-powered bikes were launched. They can travel 60 kilometers on just 60 grams of hydrogen. Additionally, five hydrogen buses were deployed for intercity transportation, with a 30-kilometer journey costing just three yuan.

"Hydrogen energy is indispensable in my life," said Xiaoyi resident Zhang Aisheng, who also drives a hydrogen bus. Every morning, he rides a hydrogen bicycle to work, drives the bus to transport commuters, and then rides the bike home after his shift.

The city is advancing projects worth a total investment of 78 billion yuan, including hydrogen production, refueling stations and hydrogen fuel-cell vehicle manufacturing. Upon completion, these projects are expected to generate an annual output value of 180 billion yuan and create 35,000 jobs.

"The city of Xiaoyi is committed to accelerating the development of the hydrogen energy industry by leveraging all available resources and expertise to achieve high-quality growth in this sector," said the city's mayor.