Industry Headline News: Notice of Launching Demonstration Applications of Fuel Cell Vehicles


Notice of Launching Demonstration Applications of Fuel Cell Vehicles





The Finance Departments (bureaus), Industry and Information Technology Authorities, Science and Technology Departments (commissions, bureaus), Development and Reform Commissions, and Energy Administration of all provinces, Autonomous Regions, municipalities directly under the Central Government, and cities under separate state planning:

The Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the National Development and Reform Commission, and the National Energy Administration (hereinafter referred to as “the five ministries and commissions”) have decided to carry out the demonstration applications of fuel cell vehicles in order to promote the sustained, sound, scientific and orderly development of China's fuel cell vehicle industry. The relevant matters are hereby notified as follows:


1.     Financial Supporting/Backing System

In accordance with the status of industrial development, the five ministries and commissions will adjust policy of the subsidy for purchasing fuel cell vehicles to demonstration applications support of fuel cell vehicles. Awards are given to eligible city clusters for the industrialization and demonstration application of key technologies of fuel cell vehicles to form new development model of fuel cell vehicles with reasonable layout, different emphasis and coordinated promotion.

The scheduled demonstration period will tentatively be four years. The five ministries and commissions will adopt the method of "reward instead of subsidy", and rewards are given to selected demonstration city clusters in accordance with the fulfillment of the targets during the demonstration period. Reward funds are coordinated by local governments and enterprises for the industrialization of core technologies, the talent introduction and team building, as well as the demonstration application of new models and new technologies. The funds should not be used for the support FCVs production investment projects and hydrogen refueling infrastructures.


2.    Demonstration Details

The demonstration city clusters should focus on technology innovation, seize application scenarios, and build a complete industrial chain. Firstly: creating fuel cell vehicle industry chain and promoting the technology R&D and industrialization of all links in the chain. Relying on leading enterprises, being customer demand-oriented, and building an industrial chain together with related enterprises to strengthen technology R&D, achieve breakthroughs in R&D and preliminary industrialization of basic materials, key components and vehicle products, and sharpen the technical skill. Secondly: carrying out demonstration applications of FCVs’ new technologies and models, promoting the establishment and improvement of technical index systems and testing & evaluation standards. It is necessary to clarify suitable application scenarios, focus on the promotion of the FCVs’ industrial application in the field of medium and long distance, medium and heavy-duty commercial vehicles. It is necessary to take advantage of information platform to realize the supervision of the entire process of fuel cell vehicle demonstration and the full industrial chain, accumulate vehicle operation data, and improve technical indicators and test standards. Thirdly: exploring effective business operation models and improving economic efficiency. It is needed to focus on the products promotion of advanced enterprises to form scale effect and to reduce the cost of FCVs. It is also needed to provide economical, safe and stable hydrogen source guarantee for FCV demonstration applications, explore the development of green hydrogen to effectively reduce the cost of hydrogen energy for vehicles. Fourthly: improving the policy and institutional environment. It is essential to establish relatively complete supporting policy system for the development of hydrogen and fuel cell core technology, the construction and operation of hydrogen refueling stations, and the demonstration application of FCVs. It is essential to clarify the energy positioning of hydrogen, establish and improve safety standards and supervision models to ensure the safety of production, transportation, refueling, and usage. It is essential to clarify the leading department and issue administrative measures for the approval of hydrogen refueling station construction.


3.    The Selection of Demonstration City Clusters


Demonstration city clusters are selected by local voluntary declaration and assessments by panels of experts. Declaring cities should break the administrative region restrictions and select cities where outstanding enterprises in the industry chain are located nationwide. The specific requirements are as follows: Firstly, signing of contract or letter of intent on cooperation between outstanding enterprises in the industry chain; then the city where the company is located (above the prefecture-level cities) form city cluster in line with the voluntary principle and negotiates the leading city; the leading city signs cooperation agreements with other cities, and jointly prepare the implementation plans, clarify the division of tasks, meanwhile other cities are to provide letter of commitment for demonstration tasks to the leading city, forming links in the whole industrial chain to coordinate the development and industrialization of key technologies; Finally after the approval of the five ministries and commissions in the province where the leading city locates, the province will submit the declaring to the five ministries and commissions of the central government(please refer to the declaration guidelines in the attachment).

The five ministries and commissions will conduct a comprehensive assessment of the eligible applications by experts committee. The demonstration city clusters will be selected by the five ministries and commissions. The plans will be implemented one by one when matured. The key focus of the demonstration application will be supporting city clusters with sound technical R&D foundation, well-organized funds, goals-oriented plans, clear application scenarios, and guaranteed policies and systems.


4.    Organization and Implementation

Fuel cell vehicles have a long industry chain with a great many of participants. The demonstration city clusters and the provinces where the cities are located should strengthen the interconnections and horizontal coordination; All provinces should coordinate their own resources, enhance the support for demonstration cities and companies; all relevant provinces should strengthen organization and coordination, jointly support the demonstration and application of demonstration city cluster.

The people’s government of the leading city of each city clusters should play an important role, jointly form a leading group with other participating cities, be responsible for the daily work of the leading group, strengthen communication and coordination between cities, as well as the promotion of demonstration works. The leading group should propose an annual implementation plan, clarify responsibilities and safety, be responsible for the organization and implementation of demonstration projects, as well as allocation of subsidies, ensure that all the industry chain links are well connected and coordinated. The leading group should submit the progress of the implementation plans, the completion of phased tasks, and the funds application reports to the five central ministries and commissions about at the end of each demonstration year.

Each city must focus on the division of tasks and detailing the implementation plan; strengthen the organization and implementation, increase the capital investment, ensure the timely and effectively application of the reward funds allocated by the central government; create a favorable policy environment for enterprises and help them solve specific problems and difficulties during projects implementations; it is necessary to strengthen supervision, detail assessments, and finish the demonstration tasks on the basis of ensured safety. The leading group should entrust a third party to supervise the demonstration works, and propose handling suggestions to the cities that are slow in progress and truly unable to complete the demonstration tasks, the implementation plan shall be adjusted after the approval by the five ministries and commissions of the adjustments submitted by the relevant departments of province where the leading city is located. All relevant enterprises should increase investment in research and development, improve R&D capacities, enhance the connections with upstream and downstream enterprises and ensure the completion of target projects with quality and quantity.

The five ministries and commissions will play their respective functions to strengthen the support, guidance and supervision of fuel cell vehicles demonstration and applications, organize experts committee to complete course tracking and guidance throughout the process, optimize technical indicators in time and release them in advance on the basis of comprehensive consider of technological progress and other factors. Each year the central finance will result-oriented allocate reward funds based on the results of the annual assessment. The central government will set total budget for the demonstration periods, and the awards criteria will be adjusted appropriately according to the progress during the demonstration periods. Two years after the implementation of the demonstration, the five ministries and commissions will organize mid-stage assessments. For city clusters that have not completed the targets on time, measures will be taken to adjust their implementation plans, deduct or suspense subsidy funds and demonstration qualifications etc. To promote the reasonable layout of the industry, it is not advisable to subsidize the promotion of fuel cell vehicles besides the demonstration areas.


Attachment: Application Guidelines for Fuel Cell Vehicle Demonstration City Clusters


The Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the National Development and Reform Commission, and the National Energy Administration



16th Sep. 2020