China Risun launches 5 ton/day liquid hydrogen plant to fuel vehicle market

China Risun Group (1907.HK) has started operations at mainland China’s first commercial-scale liquid hydrogen project with a full industrial value chain, positioning the company as a first-mover in a sector central to the nation’s energy strategy. The 5 ton-per-day hydrogen liquefaction facility, located in the company’s Dingzhou Park, is now operational.

The project is the first in mainland China to create a complete "production-storage-transportation-refueling-application" ecosystem for civilian liquid hydrogen, according to a company announcement. The successful launch gives Risun scaled, independent operational capabilities across the entire liquid hydrogen value chain, a significant advantage as Beijing pushes for the wider adoption of hydrogen energy.

The facility, which commenced operations on May 18, is designed to produce, store, and transport liquid hydrogen for use in refueling stations. This end-to-end infrastructure fills a critical gap in the domestic market, which has been reliant on fragmented and smaller-scale projects.

The project’s completion provides the essential infrastructure needed to support China’s rapidly expanding hydrogen fuel cell vehicle (HFCV) market. This move aligns directly with China’s aggressive carbon-neutrality roadmap and strategic planning for hydrogen energy, creating a closed-loop system with significant commercial and industrial spillover effects.

Fueling China's Hydrogen Vehicle Market

The timing of Risun's project is critical, as China's HFCV market is forecast to grow at a compound annual growth rate of 22.9% to reach approximately $6.7 billion by 2035, according to a VynZ Research report. This growth is driven by strong government subsidies and the accelerated deployment of fuel-cell-powered commercial vehicles, a segment that automakers like FAW Group and Dongfeng Motor Corporation are heavily investing in.

Risun’s ability to provide a stable supply of liquid hydrogen directly addresses a key bottleneck for the logistics, public transportation, and industrial freight corridors that are transitioning to HFCVs. East China, with its mature industrial base and concentrated hydrogen demonstration city clusters, represents the largest regional market, offering a ready customer base for the new facility's output.

A National Push for Energy Independence

Risun’s project is part of a broader, state-supported industrial policy to build a dominant position in the global hydrogen economy, similar to the U.S. government’s strategic push to restore its leadership in nuclear energy. Just as Washington is using federal authority to de-risk new reactor technologies, Beijing is using national programs and state-owned giants like Sinopec to build out an end-to-end hydrogen value chain.

Landmark projects like the Sinopec Kuqa Green Hydrogen Demonstration Project are focused on the production side, but Risun's facility is a crucial midstream investment. By solving the complex logistics of storing and transporting liquid hydrogen, the project strengthens China's domestic energy security and reduces reliance on imported energy sources for its transportation sector. This positions the country to compete more effectively with other global players in the clean energy transition.

This article is for informational purposes only and does not constitute investment advice.