The Ministry of Industry and Information Technology and other three departments issued the "Implementation Plan for Accelerating the Clean and Low-Carbon Hydrogen Applications in the Industrial Sector," which mentions the development of high-power, high-efficiency, and long-life Fuel Cell Energy, high-efficiency hydrogen (ammonia) internal combustion engines, as well as high-pressure, high-hydrogen-density onboard hydrogen storage devices.

Encouragement is given for Fuel Cell Energy vehicle demonstration projects to utilize high-quality industrial by-product hydrogen and renewable energy for hydrogen production nearby, promoting the construction of hydrogen production and refueling integrated stations based on distributed renewable energy. Conditional industrial parks and industry clusters are supported to coordinate the promotion of "region-to-region" hydrogen logistics trunk lines and hydrogen refueling infrastructure construction along the routes, conducting large-scale applications of Fuel Cell Energy vehicles in steel plant logistics, mining bases, industrial parks, ports, and other scenarios, forming a complete, reliable, and high-flow hydrogen logistics network. High-quality promotion of Fuel Cell Energy vehicle demonstration city clusters construction is underway, accelerating vehicle promotion and hydrogen supply system construction while pushing for technological and product iterative development applications in the hydrogen Fuel Cell Energy vehicle industry chain.

Following ShanDong and Sichuan provinces, Jilin and Shaanxi provinces have announced that as of September 1, hydrogen energy vehicles will be exempted from highway tolls. Industry insiders pointed out that if the national top-level design implemented a countrywide toll exemption for hydrogen Fuel Cell Energy vehicles, it would help promote the transition of Fuel Cell Energy vehicles from regional demonstrations to nationwide promotion, accelerating the large-scale and commercial application of hydrogen Fuel Cell Energy vehicles.

CITIC SEC's research report analysis states that solid-state hydrogen storage is regarded as the most promising next-generation hydrogen storage technology due to its high hydrogen storage density, good safety performance, and lower costs. In recent years, China has highly supported the development of the hydrogen energy industry, and favorable policies have been frequently introduced since 2024. Driven by policies, the scale of hydrogen Fuel Cell Energy vehicles and refueling stations in China is growing rapidly. CITIC SEC believes that this will fully open the market space for solid-state hydrogen storage materials, and its industrialization process is expected to accelerate. CITIC SEC estimates that by 2030, the market size for China's solid-state hydrogen storage industry will exceed 60 billion yuan, recommending investment opportunities in the most mature magnesium-based and rare-earth-based solid-state hydrogen storage materials.

Hong Kong stocks related to hydrogen fuel concepts:

Reformed Energy (02570): According to Frost & Sullivan's data, based on the sales output power of hydrogen Fuel Cell Energy systems in 2023, Reformed Energy ranks first in China's hydrogen Fuel Cell Energy system market with a market share of 23.8%. Based on the total sales output power of hydrogen Fuel Cell Energy systems installed on heavy-duty trucks in 2023, the company ranks first in China's hydrogen Fuel Cell Energy system market with a market share of 42.4%.

SINOSYNERGY (09663): SINOSYNERGY stated that the company promoted the new generation products into the mass production stage in the first half of the year, but these new products are still in the small batch production stage, resulting in temporarily lower gross profits. Additionally, during the reporting period, the company continued to increase its research and development investment in key projects such as hydrogen fuel cell stacks, systems, power generation systems, and electrolytic hydrogen production, leading to a year-on-year increase in research and development expenses, and an extension of accounts receivable aging resulted in increased credit impairment provisions.

Weichai Power (02338): Weichai has an absolute leadership position in heavy-duty truck engines, especially natural gas heavy-duty trucks, along with business diversification and overseas layout. In the first half of the year, cumulative sales of natural gas heavy-duty trucks reached 0.1088 million units, +104% year-on-year, with a penetration rate of 36.3%, an increase of 11.5 percentage points compared to 2023. Sales of Weichai natural gas heavy-duty trucks reached 0.017 million units, +1344% year-on-year. Weichai launched a new generation of 13L/15L/17L gas engines with a maximum output of 700 horsepower, applying the latest high thermal efficiency and large horsepower assembly technology to reduce gas consumption, with a market share of 44.6% for engines above 500 horsepower in 6*4 tractors.

CIMC ENRIC (03899): The company has entered a performance growth period, with LNG and hydrogen energy equipment as the core. The energy transition brings dual opportunities for natural gas and hydrogen energy equipment. LNG seizes the present, and hydrogen energy lays out the future. As a leader in storage and transportation equipment, the company fully benefits from this growth cycle.

DONGYUE GROUP (00189): The company's holding subsidiary, DONGYUE FUTURE HYDROGEN, is the only company in the country with a mass production foundation for the entire industry chain of fuel cell membranes. The dominant product, hydrogen fuel cell membrane technology, is advanced, and the production line is stable, having received high recognition and application cooperation from leading domestic and international hydrogen fuel cell companies such as AFCC, Ballard, Yihua Tong, Reborn, and SAIC Jieneng.