Business Opportunities in Shandong Province’s Hydrogen Industry

Hydrogen energy is the new priority in battling the pressing issues of climate change. China Hydrogen Energy Alliance predicts that this industrial development will result in a hydrogen energy market demand of 35 million tons by 2030 and that hydrogen energy will be 10% of the total energy supply in China by 2050. Shandong Province launched on June 18th 2020 the guidelines for the upcoming 10 years regarding the medium- and long-term development of the hydrogen industry. In this article we elaborate on the tactical choice for Shandong Province, discuss the goals of the development plan and look at the opportunities this upcoming industry can have for you.



Why Shandong?

Shandong Province (山东省) lies on the east coast of China. With a population of around 102 million and a coverage of 157 square kilometres of land, it is the 3rd largest economic powerhouse in China. Only the Jiangsu Province and the Guangdong Province trump the Shandong Province. Knowing the facts, there are three arguments that the Shandong Province published the hydrogen plan.


  • Shandong Province has a solid foundation for green hydrogen production. With the largest installed capacity of photovoltaic power, the 4th largest installed capacity of wind power in China, and 5.7 million kilowatts of nuclear power, Shandong has the foundation to produce green hydrogen in the future utilizing these new and green energy systems.


  • Shandong Province is one of the frontrunners in China in terms of chemical, metallurgical and energy industries. Originating from the rich petroleum and coal reserves, and decades of large-scale mining and investment in petro-and coal-chemical facilities, Shandong holds a unique advantage in producing hydrogen as a by-product of fossil-powered industries. This so-called grey hydrogen is produced around 2.6 million tons annually in the Shandong Province, resulting in an opportunity for large-scale utilization with comparably low costs and maintaining high quality.


  • Shandong has deep collaboration with research institutes and leading universities across the country. More than 50 enterprises and research institutes in Shandong have been involved in the hydrogen industry and combine powers to make significant progress in aspects such as key materials, core components of fuel cells (FCs), system integration, high-end and efficient energy storage and more.




The plan argues to establish Shandong in the leader position in hydrogen development. Aspects under this denominator are constructing hydrogen and Fuel Cells (FC) demonstration zones by strengthening innovation and research, accelerating hydrogen applications and demonstrations, improving the manufacturing on the equipment level, as well as building and maintaining the industrial chain and ecology. This plan consists out of three stages.





The Rijksdienst voor Ondernemend Nederlands (RVO)  argues that there are opportunities on this market for companies and research institutes who “have developed advanced technologies and/or products for the hydrogen industry”. To carry out a joint venture in Shandong, strong R&D and innovation capabilities can be helpful. While Shandong has the competitive advantages in the production of grey hydrogen from their industrial activities, large-scale mining and coal and petroleum reserves, the main flow of innovation and R&D, is found in external institutions outside the province and even outside the country. Resulting in heavy dependence on these institutes. However, and obvious from their reliance, Shandong is openly welcoming new international parties, starting fruitful cooperation’s, and welcoming hydrogen talents. Shandong Province will keep focussing on strengthening their relation, cooperation and exchange with international organisations such as International Hydrogen Energy Association and the International Hydrogen Energy Commission. Further, Shandong enterprises will be encouraged to set up R&D platforms and create joint ventures (JV’s) abroad to facilitate cooperation. To maintain Shandong’s position in the case of the hydrogen industry, Shandong proposes to formulate standards for the hydrogen industry chain with the assistance of thorough cooperation with foreign standard organisations.


RVO argues about the major technical bottlenecks in the hydrogen industry. Acting upon these can enhance the Shandong hydrogen chain/systems and guarantee your place in the industry. Examples are hydrogen storage and materials for fuel cell vehicles (FV’s), fuel cell (FC) oil-free air compressor and/or hydrogen pump, transportation equipment, high-efficient production & storage & transportation of liquid hydrogen and pipeline transportation. Recommended sectors to adhere to are FC technology and application to commercial vehicles and equipment, green hydrogen technology utilizing solar, wind and nuclear energy in Shandong. To read all the bottlenecks and recommended sectoral perspectives, we kindly request to visit

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