Due to the broad prospect of the industry, China actively encourages the introduction of policies to encourage the development of the hydrogen energy industry, and supports the development of fuel cell industry from the perspective of industrial planning, development routes and subsidies. For example, the Medium and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035) issued by the National Development and Reform Commission predicts that by 2025, there will be about 50,000 fuel cell vehicles and 100,000 to 200,000 tons of hydrogen produced from renewable energy sources. In addition, subsidies related to the hydrogen industry also play a role mainly through the fuel cell demonstration application policy. The main body of subsidies is mainly hydrogen-powered vehicles, but also includes related parts and components and hydrogen energy supply end. By the end of August 2021, the first batch of fuel cell demonstration application city clusters will be launched, corresponding to Guangdong, Shanghai and Beijing. Earlier this year, it expanded further, adding two new clusters centered on Zhangjiakou and Zhengzhou in Hebei province.
The development of hydrogen fuel cell vehicles is also favored by various institutions. Soochow Securities believes that the transportation sector is the main incremental source of hydrogen energy demand, and also the breakthrough to realize the large-scale expansion of hydrogen energy to other fields. The hydrogen energy Alliance estimates that the application of hydrogen energy in the transportation sector in 2050 will be 24.58 million tons, accounting for 41% of hydrogen energy demand. Huabao Securities believes that from the practice in the first half of 2022, with the intensive introduction of policies around the country, technological breakthrough and iteration maturity, and the improvement of hydrogen infrastructure, the cost of terminal hydrogen use will be significantly reduced, thus reducing the difficulty of downstream application and promotion. The combination of capital support and industrial capital integration can play an effective role in strengthening core technology and infrastructure construction to a certain extent, reduce terminal application costs, and boost hydrogen energy permeability.
The great development of hydrogen fuel cell automobile industry will also drive the rapid rise of a large number of enterprises in the industrial chain, especially the core key parts suppliers will continue to benefit. In the A-share market, listed companies such as Changying Precision, Yihuatong-U, Yeti and Xiongtao are all important participants in China's hydrogen fuel cell and automobile industries, as well as major hydrogen energy concept stocks in the A-share market.
Long Ying precision: Yingprecision has mastered core technologies in the field of metal bipolar plates for fuel cells. In the field of metal plates for hydrogen fuel cells, the company is undertaking related research and development tasks for major national equipment customers. It has basically mastered the key technologies of metal plates for hydrogen fuel cells, and has formed a talent team for equipment configuration, process conditions and related technology development required by research and development and production. It has been preliminarily recognized by some hydrogen fuel reactor enterprises.
Yihuatong-U: is the Dragon One hydrogen fuel cell system, with a market share of 34.8% in 2020. It has cooperated with Yutong Bus and Beiqi Foton, etc., and released fuel cell system products with rated power of 240kW by the end of 2021.
Xiongtao Shares: Its subsidiary Xiongtao Hydrorui owns the first fully automated production line of hydrogen fuel cell reactor in South China
Yeti Shares: In the industrial chain of hydrogen energy and fuel cells, two businesses have been laid out: one is related equipment for hydrogen production and hydrogenation station construction and operation; the other is hydrogen fuel cell engine system integration, including fuel cell reactor, fuel cell air compressor and hydrogen circulating pump.
