A. Overview

As China vows to cap its peak carbon emissions by 2030, the last two years has witnessed significant developments in the hydrogen energy industry. Hydrogen refueling stations offer a vital link between the production and use of hydrogen.

This article provides an overview of the current legal and regulatory environment for hydrogen refueling stations in China. In particular, it focuses on the planning, construction, and operation of hydrogen refueling stations.

B. Top-level Planning

Hydrogen refueling stations are important to the overall hydrogen energy industry. To propel the development of this sector, both national and local governments have set development goals and rolled out supporting policies to promote the deployment and application of hydrogen refueling stations.

In September and October 2021, respectively, China published the Guidance for Carbon Dioxide Peaking and Carbon Neutrality to Fully and Faithfully Implement the New Development Philosophy and the Action Plan for Reaching Carbon Dioxide Peak Before 2030. One of the soft goals set forward by these two documents is for China to promote the development of hydrogen refueling stations, as part of its attempts to lay a solid foundation for shifting to low-carbon transportation in the long run.

In March 2022, China published its Medium- and Long-term Plan for the Development of the Hydrogen Energy Industry (2021-2035), which officially incorporates the hydrogen energy industry into China’s national development plan, propelling the growth of the hydrogen sector to a new level. According to this plan, by 2025, the number of hydrogen fuel cell vehicles in use is expected to reach approximately 50,000, and it is expected that sufficient hydrogen refueling stations will be in place for these vehicles by that time. This document affirms China’s commitment to support the construction and expansion of hydrogen refueling stations, particularly those using site facilities of existing refueling stations. Furthermore, the document emphasizes the government’s aims of exploring new models for hydrogen refueling stations, such as those that integrate hydrogen production, storage, and refueling within a single station.

In July 2023, the Guidelines for Establishing the Hydrogen Energy Industry Standard System (2023) (the “Guidelines") was published. Standardization is justifiably crucial for any industry that requires a systematic framework. The Guidelines is thus carefully designed to guide and support a standardized system for developing each link in the full chain of the hydrogen energy industry, with specific reference to the production, storage, transportation, and use of hydrogen energy. Further, according to the Guidelines, ongoing regulatory work regarding hydrogen refueling stations will primarily center on ensuring the quality of the relevant equipment, technology, systems, operation and management, and safety management. With the implementation of such standards, the development of hydrogen refueling stations will be better standardized on a robust legal basis.

These invigorating policies, together with other national-level policies, offer a blueprint for the development of the hydrogen energy industry in China, including the development of hydrogen refueling stations.

C. Establishing Hydrogen Refueling Stations in China

In China, the planning, construction, operation, and safety management of hydrogen refueling stations are subject to a series of regulations. On top of the complexity of the process,  the rules governing relevant reviews and approvals tend to differ from one local government to another, and even from one governmental department to another within the same local government. Generally speaking, the following are critical steps for application for the establishment and renovation of hydrogen stations:

1. Site Selection

Site selection for a hydrogen refueling station project is a comprehensive process. The location should be in alignment with the local deployment plan for hydrogen refueling stations. In addition to economic factors, the main factors to be considered when selecting a site for a hydrogen refueling station project are as follows:

(i) Classification. The classification of hydrogen refueling stations, according to the Technical Specification for Hydrogen Fueling Stations (GB50516), falls into three classes based on the capacity of the hydrogen storage vessels installed in the stations.

(ii) Land and Location. The land should be suitable for commercial use, and, ideally, hydrogen refueling stations should be located in areas that are easily accessible.

(iii) Safety. Decision-makers should carefully consider safety in terms of the distance between the hydrogen stations and the surrounding buildings. It is also preferable to stay clear of crowded places, important buildings, scenic areas, critical infrastructure such as power plants and high-voltage substations, and areas with underground structures.

(iv) Ecology and Environment. It is always advisable to maintain a reasonable distance from reservoirs and drinking water sources.

2. Project Approval

Where a restriction applies depends on the nature of the individual project. Investing in hydrogen refueling stations is currently subject to filing with the government, and the department of development and reform at the local level is usually responsible for handling such filing based on the layout plans.

3. Planning Approval

In China, a land use planning permit and a construction engineering planning permit are the main planning approvals required for building a new hydrogen refueling station. These permits are usually issued by the local departments of planning and natural resources.

Notably, if no new building is to be constructed, then a new permit is not required for a project that involves the renovation or expansion of hydrogen refueling facilities within the redline boundaries of an existing fueling station. However, this is subject to local regulations.

4. Construction Approval

As with constructing an ordinary building, constructing a hydrogen refueling station must follow government review guidelines for fire protection design, and compliance in this regard may be manifested by obtaining a construction permit. The construction of hydrogen refueling stations should also comply with all appropriate national standards, such as the Safety Technical Specification for Hydrogen Refueling Stations (GB/T34584). Local departments of housing and construction issue the construction permits. Additionally, in light of the potential safety hazards of hydrogen refueling stations, the local departments of meteorology will regularly review the design of the lightning protection devices planned for a hydrogen refueling station. In practice, some local governments may also require construction companies to conduct additional lightning risk assessments.

5. Inspection and Acceptance

Upon completion of a hydrogen refueling station, the construction company must organize completion inspection and acceptance to be filed with relevant government agencies. In addition, special inspection and acceptance for fire protection, lightning protection devices, environmental protection facilities, occupational disease protection facilities, and any other local requirements must be filed with competent government authorities.

D. Operating a Hydrogen Refueling Station in China

Upon project acceptance, a hydrogen refueling station will be subject to different local regulations governing its operation. In general, however, hydrogen refueling station operators must obtain the licenses and meet the requirements as follows:

1. Hazardous Chemical Business License

Hydrogen is classified as a hazardous chemical, which means that a hydrogen refueling station operator should apply for the appropriate Hazardous Chemical Business License from the local department of safety supervision.

2. Hydrogen Cylinder Refueling License

As hydrogen refueling stations involve the use of special equipment such as pressure vessels (including cylinders), a hydrogen refueling station operator should apply for a Hydrogen Cylinder Refueling License from the local department of quality and technology supervision.

3. Business Qualifications

In addition to the required licenses noted above, some local governments may require hydrogen refueling station operators to obtain additional business qualifications. For example, operators in Foshan City, Guangdong Province, must apply for a hydrogen refueling station operation license from the local department of housing and construction, while companies in Hebei Province and Wuhan Economic and Technological Development Zone must apply for a gas operation license or approval. 

4. Special Licenses

If a hydrogen refueling station operator plans to sell food and cigarettes in the hydrogen refueling station, the Food Operation License and Tobacco Retail License are must-haves.

5. Other Requirements

Taking Guangdong Province as an example, according to the Interim Measures for the Construction and Management of Fuel Cell Vehicle Hydrogenation Stations in Guangdong Province, effective as of June 2023, hydrogen refueling stations must have in place a comprehensive safety production responsibility system, safety management system, and safety operating procedures for various positions before operations can start. In addition, hydrogen refueling stations in Guangdong Province should be equipped with qualified safety management personnel and hydrogen refueling operators. They should also have formal emergency plans for safety issues or accidents, and should be furnished with appropriate emergency equipment. These regulations are in line with China’s Safety Production Law.

E. Key Takeaways

1. Due to the absence of any national law governing hydrogen refueling stations in China, regulations on hydrogen refueling stations differ from one local government to another. Companies should familiarize themselves with local regulations as well as the competent authorities that issue requisite approvals.

2. In the construction phase, operators should note that any construction is legal only after all the required permits, licenses, and approvals are obtained, without which, the government may halt the project no matter what stage the construction is at. The operators may also face the additional risk of administrative penalties.

3. In the operation phase, the operation must follow all local regulations, as well as any investment agreements (if any) with the local government. Local governments may also have requirements regarding staff qualifications (e.g., the qualifications of and the number of full-time staff), operation and management rules (e.g., applicable work duty policy, operation flow and service specifications, and facility and equipment management policy), safety management rules (e.g., safety training and emergency plans for safety accidents), etc.