Shanghai (ZXZC)- Chinese megacity Shanghai is ambitious to significantly boost the development of fuel cell vehicle (FCV) industry by offering generous incentives.

Maxus EUNIQ 7; photo credit: SAIC Maxus

By 2025, automakers, who have FCVs put into pilot operation in Shanghai and obtain credits by going through a national-level evaluation, will be given subsidies of 200,000 yuan ($31,280) per credit, according to a document co-issued by departments like Shanghai Municipal Development & Reform Commission and Shanghai Finance Bureau on Nov. 3.

Per the document, companies, who produce core auto parts like fuel cell stack, membrane electrodes, bipolar plates, catalysts, carbon papers, air compressors, hydrogen circulation system, and hydrogen storage cylinder valves, will be offered governmental grant of 30,000 yuan ($4,690) per credit if those components are used in FCVs running on roads in FCV demonstration pilot city clusters in China.

The government will encourage the pilot application of fuel cell buses in eligible regions with a volume no fewer than 50 vehicles. It will subsidize the cost for operating the additional FCVs in accordance with the standard designed for the operation of comparable diesel vehicles.

Besides, operators, who have completed the construction of hydrogen filling stations and are licensed to start business by 2025, will be awarded money equivalent to 30% of the approved investment in station building. For those who have received the operational permit in 2022, 2023, and 2024-2025, the amount of subsidies per station should not exceed 5 million yuan ($782,000), 4 million yuan ($625,600), and 3 million yuan ($469,200) respectively.

Policies in the document will be effective from Nov. 1, 2021 to Dec. 31, 2025.