During the 15th Five-Year Plan, hydrogen industry to focus on building a closed-loop, full-chain ecosystem

2026 marks the inaugural year of China’s “15th Five-Year Plan” period, during which hydrogen energy has been formally integrated into the top-level strategic framework of the new “wind-solar-hydrogen integrated energy system.” With the upcoming enforcement of the *People’s Republic of China Energy Law* in 2025, hydrogen’s official status as an energy source will be legally recognized. The *Medium- and Long-Term Development Plan for the Hydrogen Industry (2021–2035)* outlines phased development targets. After years of technological accumulation and demonstration projects, China’s hydrogen industry has now crossed the so-called “valley of death” in its development trajectory, and the next five years are widely seen as a critical window for achieving large-scale deployment and market-driven cost parity. Currently, hydrogen production bases powered by wind and solar resources in western China are expanding rapidly, yet regional imbalances between hydrogen supply and demand persist. If completed, Sinopec’s planned “West-to-East Hydrogen Pipeline” could help close this supply-demand loop between eastern and western regions. However, commercialization of the industry still faces significant challenges, including high costs, insufficient infrastructure, and reliance on imported core materials. To address cost barriers, it is essential to build a comprehensive ecosystem across the entire value chain. Specific measures include: developing inter-regional hydrogen storage and transportation corridors, advancing the “100 Stations, 10,000 Vehicles” demonstration program with innovative land-use models, and expanding diverse application scenarios. Additionally, public concerns must be addressed through enhanced science communication on hydrogen safety. To ensure sustainable industry growth, uncoordinated competition should be avoided, and a market-oriented operational model should be established under a carbon performance evaluation mechanism. The central task during the “15th Five-Year Plan” period will be to fully integrate and close the ecological loop across the entire hydrogen value chain—from production and storage/transportation to end-use applications—thereby enabling the hydrogen industry to enter a phase of self-sustaining, market-driven development.