A national hydrogen energy comprehensive application pilot program has recently been officially unveiled, with only five city clusters nationwide securing approval for the initiative. Among them, Chengdu, Deyang, and Panzhihua have been included in the Xinjiang-Chengdu-Chongqing Economic Circle pilot cluster.

So, what exactly gives Sichuan the edge to claim three spots on this prestigious list?

The Foundation: A Complete Hydrogen Energy Portfolio

The year 2026 is widely regarded as a pivotal moment for hydrogen energy to scale up, as it has been designated a key future industry in the 15th Five-Year Plan. The launch of this national pilot program serves as a clear signal that the blueprint is moving from paper to practice.

Sichuan, however, started its hydrogen energy push much earlier. Back in 2010, the centrally-administered state-owned enterprise Dongfang Electric Group began developing membrane electrode technology, targeting breakthroughs in core hydrogen fuel cell systems. Today, producing fuel cells is just one facet of the company's operations, according to Hu Jian, deputy director of the Industry and Market Development Department at Dongfang Electric (Chengdu) Hydrogen Energy Technology Co., Ltd. The company has established a full-chain layout spanning hydrogen production, storage, transportation, refueling, and application. Its products have also moved from laboratories to roads, with over 1,600 hydrogen-powered heavy trucks, sanitation vehicles, and buses deployed in Sichuan and Beijing, logging more than 73 million kilometers of safe operation. Additionally, plateau zero-carbon stations combining solar, hydrogen, oxygen, heat, and electricity have been built in Garzê and Aba, while 500 Nm³/h PEM electrolyzers and 2,000 Nm³/h alkaline electrolyzers have achieved commercial application.

As the leading enterprise evolves, the entire supply chain is also expanding. A provincial work conference in 2024 described Sichuan's hydrogen sector as being at a critical stage for rapid advancement. The unique strength lies in the complete industry chain, according to an official from the Automobile and Rail Transit Equipment Division of the Sichuan Provincial Department of Economy and Information Technology.

The advantages are particularly pronounced at both ends of the spectrum, said a representative from Xi'an Aerospace Science and Technology Industrial Co., Ltd. These ends refer to hydrogen sourcing and hydrogen application—one addressing where hydrogen comes from, the other where it goes. This year, the company's liquid hydrogen demonstration project landed in Panzhihua, drawn by the city's abundant industrial by-product hydrogen resources and road scenarios suitable for liquid hydrogen heavy truck trials.

In terms of hydrogen supply, Sichuan has formed a diversified landscape led by industrial by-product hydrogen with accelerating green hydrogen development. As a major clean energy province with substantial hydro, wind, and solar resources, the potential for producing green hydrogen from renewable electricity is vast. On the application side, Sichuan ranks among the regions with the richest hydrogen use cases nationwide. For hydrogen transportation, the province has planned a network of corridors, with the Chengdu-Chongqing Hydrogen Corridor and several green hydrogen routes already operational. Currently, the province has deployed 1,746 hydrogen vehicles and built 25 refueling stations, ranking first in the western region for demonstration scale.

The Challenge: Overcoming Hurdles in Hydrogen Application

Despite its solid foundation, Sichuan's hydrogen industry still faces a significant obstacle on its path to expansion. The core issue, as one industry insider put it, is a classic chicken-and-egg dilemma. High application costs undermine market competitiveness, but without scaled applications, innovation and cost reduction cannot be achieved.

Take the liquid hydrogen demonstration project in Panzhihua as an example. Liquid hydrogen boasts a density roughly three times that of 35MPa high-pressure gaseous hydrogen, meaning hydrogen-powered heavy trucks can travel farther with the same tank volume. However, the additional liquefaction process adds significant costs that directly impact competitiveness. Furthermore, liquid hydrogen is stored at a frigid minus 253°C, requiring real-world testing and fine-tuning of the technology.

To address this, Panzhihua has opened up valuable testing grounds. The hydrogen liquefaction equipment at the Madian refueling station successfully produced liquid hydrogen in 2025, and plans are underway for hydrogen heavy trucks to begin trial runs on the highway between the station and Pingdi Town by the end of September, collecting more operational data.

Sichuan is extending policy support and platforms beyond Panzhihua. The province's strategy focuses on strengthening key industrial chains and leveraging scenario applications as a breakthrough, the official explained. In recent years, Sichuan has issued multiple special policies and plans, including the Action Plan for Further Promoting the Development and Application of the Full Hydrogen Industry Chain (2024-2027) and the Medium and Long-Term Development Plan for the Hydrogen Industry (2025-2035). These policies have enabled green hydrogen production projects outside chemical parks, integrated hydrogen production and refueling stations, and free highway access for hydrogen vehicles. Cities like Chengdu, Panzhihua, Deyang, and Garzê have introduced local supporting policies, fostering a unified provincial push to accelerate the industry chain.

Looking ahead, Sichuan has built a certain level of readiness for the scale-up exam, but there is still room for improvement. Several interviewees noted that hydrogen application still faces common issues such as limited scenarios, scarce green hydrogen, high prices, and difficulties in storage and transportation, which constrain broader adoption and industry growth.

Yet, challenges also present opportunities. Hu Jian believes that joining the pilot program opens up at least three possibilities for Sichuan: an expanded market, a benchmark effect for technology, and accelerated industrial clustering. The advancement of demonstration projects will generate substantial demand for equipment procurement and application scenarios. To capitalize on this, Dongfang Hydrogen Energy will continue refining its fuel cell systems, electrolysis systems, and multi-energy supply equipment, while accelerating the creation of benchmark projects and developing a transferable Sichuan solution.

The Path: Leveraging Strengths to Expand the Pie

To forge this Sichuan solution, the three pilot cities—Chengdu, Deyang, and Panzhihua—will play key roles in promoting hydrogen fuel cell vehicles, tackling critical technology, and exploring innovative applications.

Leveraging respective strengths is not just a domestic focus. The three pilot city clusters, including the Northeast (with Eastern Inner Mongolia)-Yangtze River Delta and the Xinjiang-Chengdu-Chongqing Economic Circle, are geographically dispersed rather than clustered together. This design emphasizes cluster distinctiveness and linkage, preventing fragmented, low-level, and duplicative development. For instance, large-scale hydro, wind, and solar hydrogen projects in Xinjiang will supply abundant hydrogen to the Sichuan-Chongqing region, while the latter's industrial base and vast market will provide solid manufacturing and application support.

Hu Wanling, vice president of Houpu Clean Energy (Group) Co., Ltd., noted a shift in this pilot compared to previous hydrogen fuel cell vehicle demonstration city clusters initiated by five national ministries. The focus has expanded from a single point in transportation to a comprehensive ecosystem covering fuel cell vehicles, industrial applications, and innovative scenarios.

The pilot sets specific targets: by 2030, hydrogen should achieve scaled applications across multiple sectors in the city clusters, with average end-user hydrogen prices below 25 yuan per kilogram, and potentially around 15 yuan in some advantageous regions. Nationwide, fuel cell vehicle numbers should double from 2025 levels to reach 100,000 units.

Sichuan is gearing up for these tests. For Houpu Group, this has meant transforming from a single equipment supplier into a full-chain solution provider, expanding beyond refueling stations into hydrogen chemicals and hydrogen storage applications. The company now exports hydrogen refueling machines, complete refueling equipment, and containerized 1000Nm³/h alkaline electrolysis systems, while its solid-state hydrogen storage systems are gaining traction in industrial backup power and renewable energy integration, even entering the South American market.

The drive to expand the pie is a shared goal across enterprises. Hu Jian mentioned that while continuing to deepen transportation applications, Dongfang Hydrogen Energy will accelerate expansion into industrial green hydrogen decarbonization scenarios like metallurgy and chemicals, launching more combined heat and power, electrolysis, and integrated energy projects to drive supply chain synergy. Meanwhile, Xi'an Aerospace is preparing to test its self-propelled liquid hydrogen-powered carbonization weeder in Panzhihua's farmland soon.

The hydrogen breeze brings with it visions of the future. With a cluster-based approach and the pilot as an opportunity, Sichuan will accelerate innovation and coordinate the implementation of industrialization projects such as photolytic hydrogen production, multi-energy supply systems, and hydrogen fuel cell vehicles. The province will also scientifically deploy refueling infrastructure, expand its hydrogen corridors, consolidate its leading position in hydrogen transportation, and foster demonstration scenarios in hydrogen-based chemicals, drones, and locomotives—using multi-scenario, large-scale applications to drive cost reduction, efficiency gains, and innovation across the entire chain.