The Zhitong Finance App learned that Guotai Junan released a research report saying that the top-level design blueprint for beautiful China has been completed, that actions to reduce emissions, green hydrogen subsidies and specific action plans to promote green electricity and green hydrogen consumption are being mapped, and the green hydrogen project has entered the batch implementation period. Beautiful China's top-level design, shipping, building materials and other industries continue to strengthen emission reduction. Along with green hydrogen subsidies in the Ningdong region and the continuous catalytic three-level policy of promoting the consumption of new energy in Inner Mongolia, Ningdong and Inner Mongolia's regional policies with the largest production capacity/projects for green hydrogen have had the effect of leading the whole body. The recommended target is Cowell (688551.SH), benefiting from petrochemical machinery (000852.SZ), Huadian Heavy Industries (601226.SH), Huaguang Huaneng (600475.SH), Sinoma Technology (002080.SZ), and ice wheel environment (000811.SZ)

Guotai Junan's views are as follows:

Top-level design policies continue to be catalyzed, and it is hoped that local representative policies will be tested first to establish a national policy layout network.

The “Opinions of the CPC Central Committee and the State Council on Comprehensively Promoting the Construction of a Beautiful China” was released. This document is a top-level design for the construction of a beautiful China, showing that the construction of a beautiful China has officially changed from the Party's governing philosophy to a specific strategic road map with clear goals and measures. Earlier, green building materials and green ships announced high-quality development plans, Ningdong subsidized green hydrogen, and Inner Mongolia issued a statement that renewable energy consumption was not included in total energy consumption and intensity control to promote the consumption of green electricity and green hydrogen. The top-down policy plan continuously calls for energy saving and carbon reduction, increasing the application of green hydrogen replacement, and promoting green and low-carbon transformation and upgrading of “coal+green hydrogen” coupling, green hydrogen metallurgy, and green hydrogen to replace fossil energy raw materials in modern coal chemical, metallurgy, and green hydrogen. As the first green hydrogen project to be implemented and the largest regions, Ningdong and Inner Mongolia will provide a model for national action. Combined with the beautiful China construction plan, it is expected that the national green hydrogen market will be launched.

Domestic and foreign green hydrogen projects are full, and electrolyzers have entered the release period.

In 2023, a total of 32 domestic electrolyzer public tenders were issued. The winning bid volume was 1.7 GW, an increase of 135% over the previous year. There were 80 projects under construction, and 387 were planned. It is expected that in 24-25 electrolyzer shipments will enter a rapid implementation period, and the winning bid volume will continue to double year-on-year. The total number of projects under construction worldwide is 14.1 GW, and the total number of projects that can be developed is 275 GW. Export orders have entered the contract period, and emphasis is placed on project development in the Middle East/North Africa region. Beginning in 2024, the Xinjiang Junrui Wensu large-scale green hydrogen production project EPC tendered 40 sets of electrolyzers, and Sinopec's 100,000 ton green hydrogen project was approved. It is expected that 200 electrolyzers will be tendered within the year. After small-scale construction and operation in 2023, the green hydrogen project will enter the release stage of 1 to 10.

The infrastructure is constantly being improved, and central state-owned enterprises are taking the lead in planning the layout.

A total of 407 hydrogen refueling stations have been built in China, number one in the world. The dual-line layout of skid-mounted/fixed fueling stations meets hydrogen demand in different scenarios, and is mostly located in the five major urban demonstration zones and along highways; in 2023, the country's first integrated city-fuel-hydrogen storage and mixing demonstration project was completed and put into operation by Zhejiang Energy Group, with a hydrogen mixing ratio of 30%; the Zhangjiakou Kangbao-Caofeidian hydrogen long-distance pipeline project filing and the Sinopec Ulanqabu-Shijiazhuang pipeline has been extended. The total length of the pure hydrogen pipeline will reach 1,868 kilometers. Flexible piping and compressor-related businesses.

Risk warning: Fuel cell cost reduction and related supporting facilities fell short of expectations; green hydrogen project implementation fell short of expectations.