Hydrogen has become officially classed as an energy resource for the first time in a new Energy Law passed on Friday, giving H2 new rights and regulations in terms of planning, development, utilisation, emergency response and storage.
It had previously been classed as a hazardous chemical, making it legally bound by safety regulations rather than energy management regulations.
Recognising hydrogen as an energy resource will have at least five practical implications for H2 in China, according to the Shanghai-based hydrogen-focused Orange Club Research Institute:
1) Hydrogen will not be subject to a “formal management system, addressing the current gap in oversight for hydrogen energy management”.
2) Hydrogen energy will get “defined development plans” at the national, provincial and municipal levels, leading to more orderly growth.
3) The energy law prioritises renewable energy, “the clean and efficient use of fossil fuels”, promoting the replacement of fossil energy with non-fossil and low-carbon alternatives, and “reasonable development and utilisation of new fuels and industrial materials as substitutes for oil and natural gas” — all of which will help clean hydrogen development.
4) The price of hydrogen will be subject to government pricing or price guidance, just like all other types of energy, with companies required to provide “timely, truthful and accurate data on prices, costs and other relevant data”.
5) Hydrogen will be integrated into the national energy reserve and emergency response framework, “reducing the likelihood of prolonged regional hydrogen shortages”.
In an annex to the law, “hydrogen energy” is defined as “the energy released when hydrogen, as an energy carrier, undergoes a chemical reaction”.
The Energy Law of the People’s Republic of China was passed by the Standing Committee of the 14th National People's Congress on Friday afternoon, and it will come into force on 1 January 2025.
