Renewable and Sustainable Energy Reviews 47 (2015) 912–923

Contents lists available at ScienceDirect

Renewable and Sustainable Energy Reviews

journal homepage: www.elsevier.com/locate/rser

Focus on fuel cell systems in China

Tan Zhongfu a, Zhang Chen a, Liu Pingkuo a,n, Brent Reed b, Zhao Jiayao a
a
School of Economics and Management, North China Electric Power University, Beijing 102206, China
b
East Carolina University, East 5th Street, Greenville, NC 27858, USA

art ic l e i nf o a b s t r a c t

Article history: There are three systems and applications of fuel cells in China, namely transportation fuel cells, stationary
Received 14 May 2014 systems and portable fuel cells. It is important for China to analyze the supply and the cost of fuel cells in
Received in revised form the context of the energy crisis. After introducing the current situation of three systems, this article
10 August 2014
classified the existing policies, and made some analysis of the policy effects. Then a PEST–SWOT model
Accepted 8 March 2015
was employed to summarize the strengths and weaknesses for fuel cells. Considering the own features of
Available online 31 March 2015
the three applications, different development strategies were put forward. Based on the above strategies,
Keywords: some conclusions were drawn about the development direction and framework of whole fuel cell systems
Fuel cells in China. Finally, we proposed some prospects and suggestions on the fuel cell systems.
Policy analysis
& 2015 Elsevier Ltd. All rights reserved.
Market analysis
Development framework design

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 913
1.1. Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 913
1.2. Literature reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 913
2. Market situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 913
2.1. Transportation fuel cells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 914
2.1.1. Case study: SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 914
2.2. Stationary systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 915
2.3. Portable fuel cells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 915
2.4. Methane fuel cells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916
3. Policy tools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916
3.1. Current policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916
3.1.1. Industrial planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 917
3.1.2. Investment policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 917
3.1.3. Subsidy policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 917
3.1.4. Tax policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 917
3.2. Policy effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 917
4. Discussion and analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918
4.1. External environment of development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918
4.1.1. Political environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918
4.1.2. Economic environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918
4.1.3. Social environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918
4.1.4. Technical environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918
4.1.5. Natural environments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919
4.2. Possibilities and challenges of development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919
4.2.1. Advantages and strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919
4.2.2. Disadvantages and weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919
4.2.3. Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919
4.2.4. Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919

n
Corresponding author. Tel.: þ 86 10 51963118; mobile: þ 86 130 1116 8395.
E-mail address: pingoforever@sina.com (L. Pingkuo).

http://dx.doi.org/10.1016/j.rser.2015.03.057
1364-0321/& 2015 Elsevier Ltd. All rights reserved.
 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923 913

5. Development framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919

5.1. Basis of trend forecasting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919
5.2. Framework design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 920
6. Conclusions and prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 920
Acknowledgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 922
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 922
Further reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 923

1. Introduction
1.1. Background
With the development of economy, energy crisis and environ-
mental pollution have been grand challenges in the world.
Environmental protection is one of the enormous factors which
impacts energy planning and technology development. In the 21th
century, irrational consumption of energy can cause a serious
constraint for sustainable development of national economy.
Energy development is required to be efficient, clean, and safe.
Therefore, the increasing energy utilization rate and the alterna-
tive energies attract more and more attentions in China. Among
them, fuel cell becomes one of the new energy sources.
Fuel cells rely on external fuel delivered continuously without
burning, and turn chemical energy of fuel into electrical energy
directly. Without the restriction of Carnot cycle, the conversion
efficiency can reach 85–90% theoretically. This generation process
can not only reduce the fossil fuel scarcity and the pollution, but also
improve the reliability and flexibility of electricity. It is significant for
China to develop fuel cell systems, and there are broad application
prospects and potential markets especially in the areas of fuel cell
vehicles, power stations, mobile power supply, uninterruptible power
supply, submarines and space power, etc. On the one hand, an in-
depth study on fuel cells can promote energy's sustainability and help
make full use of the extensive fuel sources; on the other hand, the key
technology of fuel cells can be used to improve high-tech industry
chain in China, such as the performance of electronic products. Only in
a mature form of fuel cell application can national economy promote
the rapid development. Facing with such a revolution in energy field
brought by fuel cells, the Government, the relevant enterprises and
some research institutes should not only pay attention to the fuel cells
systems but also put enough human, material resources and financial
resources into R&D to serve the energy security in China.
Currently, there are few studies or researches on fuel cell systems
in China. Fuel cell system is at the initial stage without comprehensive
evaluations on its development. Among them, most of the literatures
are about the field of fuel cell vehicles, and there are few researches on
entire systems or industry planning. In addition, due to the different
development characteristics of each field, there are no development
strategies or planning objectives for each application.
1.2. Literature reviews
The development of fuel cell systems has been concerned widely
by scholars in recent years. The research and development of fuel cell
systems started earlier in foreign countries. So, it is a great inspiration
to analyze the development status of foreign fuel cell systems and help
propose some development strategies for China. Wang et al. investi-
gated the input, production and commercialization demonstration
stage of fuel cell vehicles in U.S. in last five years, and introduced the
technology, cost and hydrogen facility construction of fuel cell vehicles.
Their result showed that the light duty fuel cell vehicles did not have
the commercial condition [1]. Pu analyzed the technical problems in U.
S. fuel cell systems and the change of energy strategy influenced by
the fuel cells, and then made some recommendations [2]. Li described
the market prospects and obstacles of fuel cell in EU, U.S., Japan and
other countries from the cost of production, infrastructure and
security, and distinguished the technical bottleneck and non-
technical bottleneck [3].
In China, there are some literatures on the applications of fuel cell
systems, including applications in the aerospace, submarines and
demonstration applications, such as fuel cell vehicles, fuel cell power
station, and portable fuel cells. Hou thought it was useful to solve the
fuel cell life and cost problems by technology. Promoting the
commercialization of civilian fuel cell products was one of the
development directions for fuel cells [4]. There were similar conclu-
sions got by Xia after introducing the current situation of proton
exchange membrane fuel cells (PEMFC), direct methanol fuel cell
(DMFC) and so on [5]. There were some researches aiming at the sole
application and making a deeper analysis. For example, Chen intro-
duced the portable fuel cell system [6], and Li summarized the
situation of fuel cell distributed generation and its significance [7].
In the aspects of policy research and future planning of fuel cell
systems, most existing literatures focused on the overall new energy
vehicles. Gu analyzed the new energy vehicles industry from the
perspective of fiscal policies, broke out the traditional concept of single
environmental protection policy and put forward some support
policies for new energy vehicles [8]. Zhao used a conceptual model
to study the development strategies of new energy vehicles, and
pointed an appropriate direction in the future through product
positioning strategy [9]. Wang summarized the current situation of
fuel cell vehicles policy using System Failure Method, made an in-
depth analysis of the existing system failures of fuel cell vehicle
industry and built the industrial development policy framework [10].
Overall, there were few policies for fuel cell systems in China, Shen put
forward the optimal strategy of industrialization through the analysis
of fuel cell materials and technology, which adapted to different fuel
cell applications according to different development periods [11]. In
terms of the fuel cell systems, Su compared China with Japan from
technology, human resources, cost and so on, and made the choice of
fuel cell systems development depending on the advantages of China
[12]. Ma summarized the strategic planning related to fuel cell systems
in China, but there was no classified analysis on existing policies [13].
Based on the above-mentioned literatures, this article will form
a systematic analysis for fuel cell systems from the current
situations and the related applications. And the policies in fuel
cell systems will be classified to analyze the effects. Combined
with the own characteristics and the external environment, the
development strategies of fuel cell systems will be proposed
through a PEST–SWOT model, and the economy planning and
policy framework of fuel cell industry will discussed. Finally, we
recommend some prospects for fuel cell systems in China.
2. Market situation
As a clean energy, fuel cells have been concerned by the entire
world in the 19th century. With the development of the technology,
the applications of fuel cells are broadening gradually and entering a
914 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923

Stationary Transport Portable

period of rapid growth. As shown in Fig. 1, in 2013, the global installed
capacity of fuel cells is 215.3 MW. The capacity of fuel cell power 250
0.3
station grows more rapidly than the others.

Capacity(MW)
200 28.1
Compared with developed countries, the research and devel- 0.5
150 41.3
opment of fuel cell systems in China started late. In the last two 0.4
100 0.4 27.6 186.9
decades (1990–2010), the fuel cells were subjected to a wide range 1.5
49.6 55.8 124.9
of support and concern, Fig. 2 shows the development timeline for 50 81.4
35.4 35
fuel cell in China. The domestic fuel cell companies are included 0
Sunrise Power Company, Shanghai Shen-Li High Tech Company, SAIC 2009 2010 2011 2012 2013

Motor (market value: 164.502 billion RMB), Tongji Technology Fig. 1. Global fuel cell capacity distribution diagram.
(market value: 5.142 billion RMB), Honda A (market value: Source: authors, 2014.
27.31 million RMB) and so on.1
Comparing with the developed countries, there are still some gaps
in terms of the cost and technical level in fuel cell system. In Japan,
PEMFC power station installed capacity has reached 2.1 million kW by
2011. The total thermal efficiency of 1kW-class family station is up to
80% now, which has a large-scale production. In the United States,
some related researches on fuel cell systems started earlier. The
American government invested $150 million for fuel cell research
and development (R&D) in 2013. In addition, platinum as a catalyst for
a fuel cell system is the most expensive material. Reducing the
platinum content is one of the effective ways to reduce the cost of
the fuel cell systems. The United States has decreased the platinum
content to 0.2 g/kW or less, so that the cost of fuel cell declined to $49/
kW (according to our investigation, the platinum content in China is
about 0.9 g/kW).
In all fuel cell types, proton exchange membrane fuel cell,
phosphoric acid fuel cell and molten carbonate fuel cell have entered
the production phase tentatively, the solid oxide fuel cell which started
late also becomes popular to large-scale clean power station gradually
[14]. This Chapter will focus on the status of research and development
for fuel cell in the transport, the power station and the portable.

2.1. Transportation fuel cells

Fuel cell vehicles, pure electric vehicles and hybrid vehicles belong
to the new energy vehicles. China's fuel cell vehicles and pure electric
vehicles do not have much market competitiveness because of some
indicators (Table 1). Therefore, Chinese auto industries are still based
on traditional vehicles, the sales volume of new energy vehicles
remain at a low level, as shown in Fig. 3.
With respect to the supply-side, in 2011, the China's vehicle
enterprises had invented the net output of 40 kW and net output
of 100 kW fuel cell engines which were provided to electric
vehicles and city buses respectively [15]. Because of the lack of
fuel cell vehicle integration technology, SAIC Motor Company, FAW
(market value: 17.138 billion RMB), Chang An (market value:
53.018 billion RMB), Chery and other companies are stuck in
restructuring the traditional internal combustion engine vehicles,
and there is a big gap or difference in vehicle development, vehicle
dynamics, driving range and other aspects between China and the
foreign countries2 [16]. The performance comparison of fuel cell
vehicles produced by different brands for domestic and foreign
manufacturers is shown in Table 2. Therefore, the supply of fuel
cell vehicles is still in research and demonstration phase in China.
As to the costs, the fuel cell vehicles are based on proton
exchange membrane fuel cell technology, which requires a high
materials quality [4]. The cost of vehicles can reach 7.96–14.93 mil-
lion RMB (about $1.28–2.4 million). As for operating costs, the fuel
consumption of traditional cars is 7 l per 100 km, and the cost is
about 27.88 RMB ($4.48). The hydrogen fuel cell cars consume
Fig. 2. Fuel cells development timeline in China.
Source: authors, 2014.
1.2 kg of hydrogen per 100 km, and only need about 7.16 RMB
($1.15), which is one-quarter of the former [17]. For the sales costs,
fuel cell vehicles are high-tech products, which need input more at
early stage to open the market. Now this part is shared by vehicle
companies and the government.
In addition, the auxiliary facilities of fuel cell vehicles are not
perfect, which results in the low demand. By the end of 2011, there
were two hydrogen refueling stations in Beijing Yong Feng (the one
was used at the Olympic Game), and Shanghai Anting has built a
hydrogen refueling station and a mobile hydrogen vehicles. But
there is no sound infrastructure network across the country or
overall planning for the layout [18]. Compared to other countries
in the world, the construction of ancillary facilities extent still has
a long way to go for China. As of October 2012, the united States
have a total of 58 vehicles hydrogen filling stations, which sets up
a good example to China.

1
2.1.1. Case study: SAIC
The current exchange rate: $1 ¼6.2223 RMB.
2
The stable life of hydrogen fuel cell produced by Chinese vehicle enterprises
In SAIC Motor, Shanghai Volkswagen launched fuel cell PASSAT
is about 2000 hours, the international advanced technology has reached Ling Yu which served for Beijing Olympics in 2008. At the same
8000 hours. time, Roewe, Chevrolet and other brands also had fuel cell concept
 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923
Table 1
Pure electric, fuel cell and the traditional vehicles comparative analysis.
Source: authors, 2014.
Cold starting temperature (1C)
Traditional vehicles  30
Blade electric vehicles 5
Fuel cell vehicles  30
vehicles independently. Now Fuel cell vehicles are required to do a
lot of reliability and durability tests, SAIC had 5 kinds of fuel cell
vehicles in the test in the first half of 2013, and would have a small
batch production after the test. In the second half of 2013, the
kinds would be increased to 20. According to SAIC plan, by 2015,
the fuel cell vehicles equipped with metal bipolar plate will reach
the thousand production scale. For the cost, it will decrease by
around 603,000–697,000 RMB ($97,000–112,000) when the fuel
cell vehicles can be volume-produced, and reduce to 311,000 RMB
($50,000) continually with expanding the scale. In the 2014 Beijing
Auto Show, SAIC released the Roewe 950 new plug-in fuel cell
vehicle. Driving force of the car is hydrogen fuel cell mainly and
assisted with the battery. The maximum endurance capacity can
reach 400 km and start at minus 20 1C ambient temperatures.
2.2. Stationary systems
Power station construction is another application of fuel cell,
PEMFC and SOFC are always used to small or medium sized power
stations. In China, the distributed power stations are mainly based
on photovoltaic power and wind power. The fuel cell power
station is still in the experimental stage. Fig. 4 shows the
distributed power stations in China. The data in Fig. 4 means the
fuel cell capacity in each site. The fuel cell power stations in Beijing
and Shanghai are the research projects, so the cost information of
these stations cannot be collected for the present. The station in
the Qinghai Province is a substation equipped with a hydrogen
fuel cell system.
Compared with conventional power generation, the fuel effi-
ciency of stationary power plant is higher than that of the super-
critical generating units. Due to the cleaning feature, stability and
reliability, the fuel cell power station has become a new-gene-
ration application in low-carbon development. Compared with
other renewable energy, the fuel cell power stations are affected
by the electricity loading rate slightly. It can supply electricity
continually and steadily, which is suitable for urban load centers
[19], as shown in Table 3:
From the view of cost, when fuel cell power stations put into
operation, the generation cost can be at least 0.8 RMB ($0.13) per
kWh. There are still cost differentials between the thermal power
and fuel cell power [20]. From the view of overall economy, the
entire grid investments, such as transmission consumption, dis-
tribution facilities construction, additional pollution control and
etc., should be taken into account. So, the comprehensive cost of a
thermal power plant is about 13,000–15,000 RMB ($2090–2410)
per kilowatt, while the construction cost of a fuel cell power
station is about 7000 RMB ($1125) per kilowatt [21]. In addition, as
a small and medium sized distributed power station, mass
productions of fuel cell power stations have considerable advan-
tages with its low maintenance costs.
China's fuel cell power stations cannot form the bulk supply. In
2009, the first 10 kW natural gas-proton exchange membrane fuel cell
power station developed successfully. South China University invented
a 300 kW proton exchange membrane fuel cell demonstration power
station independently, which had put into operation in 2010. That fuel
915
Energy supply rate (min) Integrated vehicle cost (RMB) Basic facilities
5 100,000 Complete
Rapid-charge: 30 300,000–500,000 Lack
Trickle-charge: Z300
Exchange: 10
5 800,000–1,500,000 Scarcity
Fig. 3. Vehicle sales distribution diagram in 2010–2013.
Source: authors, 2014.
cell power station is the biggest fuel cell station in China, and its
energy efficiency can reach 90%. The electricity can be transport to
school 380 V low voltage line directly [22]. The cost of that station has
decreased to 6000 RMB ($965) per kilowatt, so some power genera-
tion companies have been making further discussions about the
possibility of building a larger installed capacity station. Some research
departments forecast that the comprehensive sales price in the market
of 200 kW fuel cell power stations can fall to around $0.3 million after
general adoption of the market principle, the generating benefit can be
up to $92,000 [19].
From the perspective of demand, with the commercialization of
technology, small distributed fuel cell power station markets have
great potentials. The demand of distributed fuel cell capacity can
reach 1000 MW. The fuel cell power stations have a good prospect,
however, they still need a long time to test and construct the
facilities.
2.3. Portable fuel cells
The fuel cells can be used as portable power resources in
various fields, mainly for replacing the types of instrumentation
and batteries of communications equipment at normal tempera-
ture. Portable fuel cell power supply has some advantages in terms
of transportation and storage, typically using the direct methanol
fuel cells and PEMFC. Portable fuel cells have wide applications, as
illustrated in Fig. 5. It is convenient for miniature equipment with
direct methanol fuel cells to add fuels. So there is a great space to
develop electronic applications. The proton exchange membrane
fuel cell is mainly used as power supply of the small portable
devices in the military and aerospace.
In the fuel cells market, there are a number of companies
supplying portable fuel cell products in China. Among them, the
supply quantity of small sized fuel cells has reached 0.1 million
kilowatts already. In 2014, the average price of 300 W proton
exchange membrane fuel cell for military field backup power is
about 6000 RMB ($964), and the average price of 30 W hydrogen
fuel cell for fuel cell bike is about 2000 RMB ($320).
The prepared cost of portable fuel cell in China is around
3110 RMB ($500) per kW, which is slightly higher than normal
batteries cost. With a mass production of products, the cost will
continue decreasing. Beijing GH2 Power Technology Company
916 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923

Table 2
Comparison of fuel cell vehicles between China and foreign carmaker (2013).
Source: authors, 2014.

Vehicle manufacturer parameter SAIC Shanghai brand Daimler AG Class F-Cell Honda clarity Toyota FCHV adv GM Provoq

Complete vehicle kerb mass (kg) 1833 1700 1625 1880 1978
Hundred kilometers acceleration time (s) 15 10 11 / 8.5
Maximum speed (km/h) 150 170 160 155 160
Driving range (km) 3001 6002 570 8303 483
Fuel cell engine maximum power (kW) 55 80 100 90 88
Hydrogen storage system pressure (MPa) 35 70 70 70 70
The motor torque/power (kW/Nm) 90/210 100/290 100/260 90/260 150/Na

Note: 1 – Chinese urban driving conditions; 2 – NEDC conditions; 3 – EPA conditions.

Fig. 4. Distributed power stations in China.

Source: authors, 2014.

launched the first commercial methanol fuel cell in China.
Although the acquisition expense is high, the operating cost of
this product is only 1.5 RMB ($0.25) per kWh and the service can
work up to 10 years [23].
From the demand perspective, the annual production of battery
reaches 16 billion units in China. 100 W small electronic products
with fuel cells have a strong competitiveness. In addition, because
of the new function of electronic products, the performance of
existing lithium batteries cannot meet some end-users. Compared
with the secondary battery, micro-DMFC has a high energy density
and a long cycle life, and it can avoid the problem of battery
memory effect. These excellent performances will provide a strong
driving force to open the fuel cells market [24]. At present, there is
no fuel cells electronic products market in China, primarily due to
the complicated structure design in micro-fuel cells and low
integration compatibility with other electric appliances [25].
Therefore, micro-fuel cells have a big expected demand. Because
of the technique and product specifications, however, there is still
a long way to go.
2.4. Methane fuel cells
The main component of biogas is methane and carbon dioxide.
As the largest agricultural country, China has abundant biomass
resources which can be transformed into biogas. By the end of
2013, annual production of biogas in rural areas has reached
1.4 billion cubic meters [25].
The utilizations of biogas are usually divided into three appli-
cations: direct gas combustion, biogas generation and biogas fuel
cells. Among them, the direct gas combustion has been used
widely, but does not produce the best possible results.
Compared with biogas generation, biogas fuel cell is a new
development trend of China's biogas utilization, and its realized
economy is much higher than traditional biogas generation [26].
Table 4 shows the comparison of the two applications.
Biogas fuel cell is still in its infancy in China. There was a
200 kW biogas fuel cell device in Guangdong Panyu ShuiMen pig
farm which was built by the cooperation of the Chinese Academy of
Sciences and the Energy Research Institute in Japan. This device is
the first biogas phosphate fuel cell demonstration projects in the
world. It means the beginning of the practical studies of biogas
fuel cell systems [27]. Therefore, using biogas fuel cells is becom-
ing a new trend for energy and environment. However, the biogas
fuel cell in China mainly depends on the cooperation with foreign
projects. The technology has not yet reached the level of produc-
tion and independent supply.
3. Policy tools
3.1. Current policies
In China, because of the lack of fuel cells market, most support
policies are focused on research and development investment.
With respect to fuel cells' applications, the fuel cell vehicle is the
only field in which industry has formed and market's have a
certain size. So the policies for fuel cell systems designed by the
Government are mostly for the development of fuel cell vehicles.
 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923
Table 3
Comparative analysis on main generation methods.
Source: authors, 2014.
Composite Efficiency Transmission loss
cost
Common coal-fired $1812.5/kW 35–40% High-voltage long distance transmission losses
power plants (6–8%)
Fuel cell power station $964/kW 70% Multi-established, power transmission loss is small
(energy loss 3%)
Photovoltaic power $9750/kW 75% Small transmission loss, but have requirements for
station site
3.1.1. Industrial planning
In the period of “Tenth Five-Year” (2001–2005), the national
electric vehicle projects proposed “three vertical and three hori-
zontal” strategy-map which has a great significance at that time
(“three vertical” refers to hybrid vehicles, pure electric vehicles,
fuel cell vehicles, and “three horizontal” refers to multi-energy
powertrain control system, motor and control system and the
battery management system). This route clearly indicated the idea
of development and industrialization of fuel cell vehicles.
In 2003, the commercialization demonstration project of
China's fuel cell bus was jointly supported by the Government,
the Global Environment Facility and the United Nations Develop-
ment Program with a total funding of 202 million RMB ($32.36
million). In addition, the “new energy and renewable energy
development program” issued by the State in 2005 considered the
fuel cell development as priority development project [28]. During
that period, the target of those related policies are for broadening
new-energy vehicles, but not the fuel cell vehicles (Table 5).
In the “Eleventh Five-Year” period (2006–2010), the Major
Project Group for energy-saving and new energy vehicles was
established. With the support of the Group, fuel cell vehicles made
great progresses in the area of passenger cars and buses [28]. In
2012, “Energy-saving and new energy automotive industry develop-
ment plan (2012–2020)”, issued by the State Council, claimed that
it was important to run FCV demonstration project continually and
improve the reliability and durability of the fuel cell system [29].
In the “Twelfth Five-Year Plan” period (2011–2015), the “theme
project of 863 Energy Fields” presented that the main task of the
fuel cells is to solve the technical bottleneck such as SOFC high-
power pile and poor tolerance of CO in PEMFC, and to explore the
small-scale application demonstration of independent power
generation system. In January 2012, the “fuel cells and key
technologies of distributed generation system” project workshop
was held by the Ministry of Science. This meeting indicated that
the development of distributed power generation systems could
contribute to the industrialization pace of fuel cell systems.
3.1.2. Investment policy
During the period of “Tenth Five-Year Plan” and “Eleventh Five-
Year Plan”, China has put 2 billion RMB ($0.3 billion) into scientific
R&D through the sub-item of “Electric Vehicles Major Projects” and
“Energy-saving and New energy vehicles Projects” in the “theme
project of 863 Energy Fields”.
There are similar investment policies in local areas. For exam-
ple, GUANGSHUN fuel cell core components Industrial Park in
Guangdong province have had 16 million RMB ($2.6 million)
supported by the government funds. Taiwan government have
given 62 million RMB ($10 million) grant to fuel cell enterprises in
the last three years, and promoted the marketization of fuel cell
systems through the development of fuel cell vehicles. This policy
brought more than twice investments for fuel cell industry [30].
917
Auxiliary service Stability
Need peak regulation and frequency Stable, bear the main
modulation load
Strong ability to adapt to changes in Short life, for area-
load based grid
Be used to separate power or join the Stable
grid
Fig. 5. Applications of portable fuel cells.
Source: authors, 2014.
3.1.3. Subsidy policy
In the “Interim Measures for financial assistance of new energy
vehicle demonstration promotion”, each fuel cell vehicle can get
250,000 RMB ($40,180) financial subsidy from the Government
[31]. Table 6 presents the subsidy circumstances for new energy
vehicles promulgated by the Government. In the “Notice of
promoting energy conservation and new energy vehicle demonstra-
tion pilot work”, public domain was encouraged to take the lead in
purchasing new energy vehicles including fuel cell vehicles.
Among them, the acquisition cost is digested by the Central
Government subsidies, the cost of related facilities construction
and maintenance is handled by the local financial subsidies [10].
3.1.4. Tax policy
Currently, there is no specific tax policy for fuel cell vehicles.
Definite measures are usually reflected in ordinary auto consump-
tion tax policy. According to the “vessel tax policy notice of saving
energy and using new energy vessel and vehicle” stipulated by the
Ministry of Finance, the vehicle and vessel tax of seven kinds of
fuel cell vehicles are not levied.
3.2. Policy effects
There are some supporting policies for the development of fuel
cell systems in China in terms of industrial planning, investment,
taxes and subsidies, which provide a policy environment in
general level [32].
Based on the national support, the government purchase has
become a major driving force for the development of fuel cell
vehicles. Governments at all levels and public bodies will expand
the scale of procurement gradually. The purchase proportion of
new energy vehicles can be expected to reach 10% in 2015. In fuel
cell bus demonstration projects, the cumulative kilometers of nine
fuel cell buses can run 201,196 km, and reduce 216 ton carbon
dioxide emissions. Shanghai's six fuel cell buses have served for six
months in Shanghai World Expo, which picked more than 0.1 mil-
lion visitors.
918 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923
Table 4
Contrast between biogas generations and biogas fuel cell generation.
Source: authors, 2014.
Generating Generating Production rate
efficiency capacity
Biogas 27–30%, internal 2.1 kW/Nm3 Slow combustion
generation combustion engine of biogas generator
loss
Biogas fuel cell Up to 40–60%, the 2.8 kW/Nm3 Without the
generation heat recovery combustion
system total process, adding
energy efficiency is fuel instantly
70–90%.
But there are still a lot of problems in the existing policies. First,
the targeted policies of fuel cells are few, even in the most widely
using field of transport. The policies are mostly about the overall
planning of new energy vehicles. For example, China encourages
the purchase of new energy vehicles in the public domain;
however, the production quantity of fuel cell vehicles cannot meet
the demand. Therefore, many local governments can only choose
other types of new energy vehicles such as pure electric vehicles.
Under such circumstances, the policy effects are always insuffi-
cient. In addition, due to the poor targeted policies, the existing
policies do not apply to the fuel cell industry. Second, the Govern-
ment is not clear on the development direction of the fuel cell
industry. Because of the wide applications of fuel cells, there are
great demands of technology investment. The lack of development
strategies will lead to a waste of financial investment. Third, the
government subsidies are insufficient sometimes. Fuel cell pro-
duction relies on the introduction of foreign technology initially.
And the battery materials are expensive in small production scale.
The subsidies for fuel cells from government cannot meet the huge
cost difference. Finally, the development of fuel cell is based on
governmental organizations. There are few relevant policies about
innovation encouragement. In other countries, the organizations
are mostly self-organized and co-organized, which have a great
coordination between governments, research institutions and
companies.
4. Discussion and analysis
4.1. External environment of development
The development of China's fuel cell systems cannot be separated
from the environment analysis. The PESTþ N model can be used to
analyze the specific environment of fuel cell systems from five
dimensions of political (P), economic (E), social (S), technology
(T) and nature (N), as shown in Fig. 6 [9]. Through this model,
strategies can be got for fuel cell systems development, and a macro
background can be provided to reference conveniently.
4.1.1. Political environment
In recent years, especially under the pressure of energy-saving
and emissions reduction, the fuel cells, as a new energy, get great
attentions by the Government. Overall, under this background,
there are already many policies about technology investments,
industrial planning, price subsidies and taxes. Now, the applica-
tions of the fuel cells are relatively simple, most policies are
aiming at the fuel cell vehicles, while other fuel cells applications
can also be carried out by such policies. So from the point of
political aspect, fuel cell systems are the choice which follows the
Construction cost Environmental Applied range
implication
$695.8/kW Small amount of Rural based on 3–10 kW
nitrogen oxides biogas engine turbine;
from combustion, medium-sized green energy
sulfur oxides and projects based on 50–200 kW
noise biogas generation unit.
$705.6/kW The reaction Module structure, both
product is clean centralized power supply,
water, low emitted also suitable for
nitrogen oxides decentralized power supply.
and noise
trend. It is able to enjoy preferential policies and reduce
enterprise costs.
4.1.2. Economic environment
China is in the rapid stage of economic development. From the
view of macroeconomic environment, the GDP shows an increas-
ing tendency. And per capita consumption level is increasing
synchronously. As to fuel cells systems, consumers will prefer to
the fuel cell vehicles when the cost differences between fuel cell
vehicles and ordinary fuel vehicles can make up the price
differences among oil and fuels. With the start of many electronics
industries, the customers in developed areas have a large demand
of portable fuel cells. Therefore, either in the fuel cell vehicles field
or in portable fuel cells field, the economic strength determines
the level of their consumption, the purchasing power of consu-
mers determines the size of the market.
4.1.3. Social environment
The population of China is huge and has a stable trend. On the
one hand, it brings a wealth of labor resources. On the other hand,
it causes a lot of energy consumption. Meanwhile, the develop-
ment is unbalanced throughout the country. It is difficult for
underdeveloped rural areas to form a certain scale centralized
distribution network, thus China should require some investment
in building power generation in a few kilowatts to hundreds of
megawatts of distributed power supply system. The fuel cell
power stations, as the main target, have a small scale of invest-
ment and a short construction period. It will become the main
distributed power supply system gradually. The population quali-
ties of China, however, are different. As an emerging technology,
fuel cells will meet the development bottlenecks because of the
consumers' conservative ideas. As a result, the 'ommercialization
process will slow down.
4.1.4. Technical environment
China is keeping an increasing investment in fuel cell technol-
ogy. The applicability of fuel cell products is strengthened con-
stantly. From the view of the materials composition of fuel cells,
the discovery of new materials can improve the performance of
the fuel cells in terms of multifunction, shape, durability and
safety. The fuel cells will have the great competitiveness in the
future than the similar products with excellent performances now.
It is can be seen that the current technology level of fuel cells is
still in developing stage with some technical bottlenecks in the
fields of electrode, separator materials, production processes and
system integration.
 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923 919

Table 5
Planning policies of the fuel cell vehicle industry.
Source: authors, 2014.

Time Policies of fuel cell systems industry

The “Tenth Five-year Plan” Major projects proposed for electric vehicles, “three vertical and three horizontal” development path
(2001–2005)
February, 2006 “Long-term Science and Technology Development Plan (2006–2010)”: the enroll fuel cell into eight cutting-edge technology, which laid
the basic direction of fuel cell vehicles development
2009 “Automobile industry restructuring and revitalization plan” promote fuel cell vehicles of new energy vehicles for cities
The “Eleventh Five-year Plan” Established “Energy-saving and new energy vehicle major project” and “Ten City 1000 vehicles” plan
(2006–2010)
2012 “Energy-saving and new energy automotive industry development plan”

4.1.5. Natural environments
With respect to the natural environment, fuel cells as an
alternative new energy have an important role in the geographical
environment of scarce resources. Compared with other equipment
using non-renewable energy, fuel cell systems can obtain energy
by direct chemical reaction. The chemical products do not pollute
the environment. It also has a great development prospects from
the perspective of sustainability.
4.2. Possibilities and challenges of development
The SWOT model is employed to analyze the advantages,
disadvantages, opportunities and threats of fuel cell systems. It is
a comprehensive analysis of the current development strategies
and difficulties to put forward the future strategies and provide
the theoretical supports [33].
4.2.1. Advantages and strengths
Internal strengths of the fuel cells lie in three aspects. First, a
good policy environment is important. There are several invest-
ment subsidies. It is beneficial to the development of industry.
Second, fuel cells have a number of excellent features, such as the
long battery life of direct methanol fuel cells, which is the
foundation of the fuel cell portable device. Third, the fuel cells
have a wide range of fuel sources, which can be obtained in many
ways. So the fuel cell is suitable for long-term sustainable
development.
4.2.2. Disadvantages and weaknesses
With respect to the operation management, fuel cells have the
several disadvantages. First, the high-tech human resources are
scarce. Although China has rich labor resources, there are few
technical personnel engaged in extreme technology. This is not
beneficial to mass production. Second, the fuel cell technology is
not mature. The technical problems lead to the insufficient quality.
It is difficult to seize the market share under the competition with
similar products. Third, products standards and production stan-
dards of the fuel cells are difficult to unify, which results in the
inconvenience of using fuel cell products. Finally, infrastructure
construction of the fuel cell systems is not complete. For example,
the construction of hydrogen refueling station is crucial for the
availability of fuel cell vehicles, but it needs urgent perfection.
4.2.3. Opportunities
Fuel cell industry will face the following opportunities through-
out the life cycle. First, it has a lot of potential customers and a
strong market demand. As an environmentally friendly energy, the
fuel cells are able to get the majority of consumers and easily to be
accepted. After the formation of fuel cell industry, fuel cell
products can become a symbol of high-end and fashion. Second,
fuel cell systems have a great possibility of integration. Combining
R&D with production and sales, the whole industrial chain can be
more competitive and coordination. Third, the fuel cells applica-
tions have space for further expansion.
4.2.4. Threats
First, the applications of fuel cell systems, such as transporta-
tion and distributed power stations, are difficult to enter the
market. Due to the existing economies of scale, there is a large
advantage of cost for some big enterprises, but the cost of the fuel
cells is rather high, which is difficult to open the market in the
early stage. Second, the international technology of fuel cell
products is mature. With the better performance and lower cost,
the China's fuel cell products face significant threats from the
foreign alternatives. Third, the subsidies stipulated by the national
policy have the possibility of declining. The subsidies have been
the basis for the fuel cells development for years. If the fuel cells
rely on the subsidies to a large extent, the decreasing of financial
subsidies can bring out serious effects on them. The fuel cell
products will face a threat of covering the cost.
Based on the PEST–SWOT analysis, the following results can be
concluded in Table 7.
According to the analysis of internal and external environment,
there are four types of strategy combinations, namely SO strategy,
WO strategy, ST strategy and WT strategy. Although there are
some bottlenecks, the fuel cell systems are on the rise phase in
China. So the SO strategy can be chosen to catch the opportunities
and improve the deficiencies. The fuel cell systems must jump out
of the research stage as soon as possible, and enter the market
with a diversified development.
5. Development framework
5.1. Basis of trend forecasting
At present, the main applications of fuel cells include fuel cell
vehicles, fuel cell distributed power stations and portable fuel cell
devices. Accordingly, three different development strategies should be
made in terms of their own advantages and disadvantages. According
to CCID statistics (2012), as displayed in Figs. 7 and 8, China's fuel cell
applications focused on the transport area is about $287.6 million,
which accounting for the total amount about 74%, the power station
system is $38 million accounting for about 10% and the portable power
supply is $60.54 million accounting for 16%. The largest investment in
China's fuel cell researches goes to the field of proton exchange
membrane fuel cells, which costs $211.9 million. The research invest-
ment of fuel storage and infrastructure construction is just $56.7
million and $30.3 million respectively accounting for 15% and 8%.
Under the background of the entire fuel cell industry, the
related developments of three systems are with different com-
mercialization problems. Table 8 is a comparative analysis of three
applications.
920 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923

Table 6
Purchase subsidy of new energy vehicles.
Source: authors, 2014.

New energy vehicles Subsidies

RMB (yuan) USD ($)

Small cars and commercial vehicles Hybrid electric vehicle 50,000 8035
Blade electric vehicles 60,000 9642
Hybrid electric vehicle 250,000 40,175
Bus Hybrid electric vehicle 420,000 67,494
Blade electric vehicles 500,000 80,350
Hybrid electric vehicle 600,000 96,420

From Table 8, we can see that the cost of fuel cell vehicles is
higher than the similar products. The fuel cell vehicles have a high
requirement of hydrogen filling stations. Fuel cell power stations
can run independently and require minimum facility construc-
tions. But the existing technology is hard to meet the demand of
production. Portable application has a great advantage of cost
compared with the other two applications. It is easy to obtain and
save the liquid methanol fuel. The biggest problem is lack of
reliability. Based on the PEST–SWOT analysis in previous section,
we should make market segmentation for fuel cell applications
based on their advantages and disadvantages, regional consump-
tion patterns and market demand. And it is significant to form
correct product positioning and market goals depending on the Fig. 6. PESTþ N analysis for fuel cells environment.
different development strategies. Source: authors, 2014.

With respect to the sources of fuel cell, the energy conversion

5.2. Framework design
As to the transport field (Fig. 9), there have been high-quality
hydrogen sources and policy support conditions already. Under
the influence of policy supports and technology advance, China
should continually reduce the cost and build ancillary facilities to
expand demand of the fuel cell vehicles. According to the related
study [7,22], the fuel cell vehicles will be put into operation with
small quantities by 2015, and then enter a rapid growth phase in
2020.With the expansion of the market, the fuel cell vehicles will
come into a stable growth phase in 2025 (Fig. 10). Therefore, the
transport field is expected to be the first fuel cell applications
market in China. And a growth-oriented strategy can be chosen to
promote the industry development.
In the field of distributed power stations (Fig. 11), there will be
a great demand of distributed power station in the construction
planning of the national power grid, but there are competitions
from other energy stations simultaneously. Under the combined
effects of the three applications, the fuel cell power stations need
focus on overcoming the disadvantages of both technology and
cost. And the external opportunities should be used to overcome
the weaknesses. Therefore, a reverse strategy can be chosen for
fuel cell power station planning.
In terms of the portable (Fig. 12), its application with excellent
performance has a huge market demand. But the portable applica-
tions of fuel cells also require a higher degree of standardization,
so that multiple devices can be compatible with the common type
of fuel cells. Portable fuel cells are closer to the civilian, so the
effects of marketing tools are greater than other two applications.
Therefore, a diversification strategy can help open and occupy the
market quickly.
From the overall development of the fuel cell systems, the most
efforts should be made on the transportation field. But Table 8 also
presents a conclusion that the cost of the fuel cell vehicles is
difficult to decrease and the ancillary facilities need a long time to
complete.
efficiency and the fuel acquisition costs become the major factors
affecting the development of fuel cell industry. When choosing solar
photovoltaic to electrolyze the water for hydrogen production, the
utilization rate of solar energy can get to 94% with less energy loss.
The hydrogen generates through the fuel cell storage power systems,
and the conversion efficiency in this process can reach about 90%.
When choosing wind power to electrolyze the water, the energy
conversion rate is only about 25% although there is abundant wind
energy. For distributed power stations, there is less difference
between efficiency of natural gas fuel cell station and combined
cycle power plant, but there is a large gap about $ 600 / kW between
the costs of the natural gas fuel cell station and the combined cycle
power plant. Consequently, the development of fuel cell power
stations needs further improvement for the energy conversion rate
to reduce the cost.
In the contrast, in the field of the portable applications, the
direct methanol fuel cell system has a low cost with simple
structure. And in the rapid development of the electronics indus-
try, portable fuel cells have a good opportunity to attract con-
sumers. Therefore, it is necessary to develop the portable
applications at the early stage of fuel cells. The development
structure is as follows (Fig. 13).
6. Conclusions and prospects
The applications of fuel cells are transformed from military and
aviation to civilian. The commercial operation of fuel cell systems
relies more on the mass consumers. Only with the stimulus of
large demand, can the fuel cell systems develop faster and better.
In the past 20 years, fuel cell applications in China have made
great progress through the continuous efforts, but they still fail to
form an industrial system. The main reasons are as follows:
First, the technology of fuel cells in China has not yet reached
the commercial requirements. With the high production cost, the
fuel cells are lack of market competitiveness.
 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923 921

Table 7
Fuel cells development strategy matrix.
Source: authors, 2014.

Strategic choice Strength Weakness

(1) policy environment (1) High-tech human resource scarcity
(2) production performance (2) Lack of technology
(3) broad fuel sources (3) Low unification degree
(4) Uncompleted auxiliary facilities

Opportunity SO strategy WO strategy

(1) Potential Seize the development policy, product high quality products, form the Depend on the market demand, encourage the combinations of
customers, core competitiveness of products research institutes and vehicle enterprises, improve auxiliary
demand growth facilities construction
(2) Forward and
backward
integration
(3) (3)Wide
development space

Threats ST strategy WT strategy

(1) Difficulty of Implement diversification strategies, develop fuel cell systems from Adopt defensive strategies, develop in the existing market steadily,
market access multiple angles, reduce the threat of competitors and the dependence improve the technical problems, encourage independent innovation
(2) Foreign on subsidies
competition threat
(3) Subsidy amount

Fig. 7. China's fuel cell investments applications distribution.

Source: CCID, 2012.

Fig. 8. China's fuel cells investments type distribution.

Second, the uncompleted facilities lead to the inconvenient
using of fuel cells, which limits the commercialization process.
Third, policy support cannot be carried out exactly and fully. It
is unable to mobilize the enthusiasm of the whole society to focus
on the fuel cells development.
Therefore, according to the current economic situation and
social needs in China, there are some suggestions about the fuel
cell systems:
(1) The Government needs to provide policy supports continually
and refine the policy objectives to improve the pertinence of
industrial policy. China should pay attention to combining
research institutions and enterprises, and lay the foundation
for the products research. It is important to build core
competitiveness by breaking through the key technologies.
In addition, the fuel cell systems should be adjusted according
to different regions and different times, and then choose the
right development strategy and direction.
(2) The fuel cell facilities need to be improved, including hydrogen
stations and battery replacement stations. China must estab-
lish a complete set of auxiliary facilities, and then consider
reducing the industrial stages of introduction of fuel cell
systems. Meanwhile, the battery standards need to be further
unified including basic terminology standard and cells
Source: CCID, 2012.
standard in different applications to establish an impeccable
standard system of fuel cells.
(3) The fuel cell systems must be geared to international stan-
dards, and increase the introduction of foreign advanced
technology to shorten the differences with developed coun-
tries. Combined with the development situations of fuel cell
systems, China should participate in international exchanges
and cooperation actively to accelerate the industrial develop-
ment. Only in this way, can the fuel cell products in China be
competitive in the world as soon as possible.
The fuel cells are the most promising clean energy in 21st
century, which can be the best choice of replacing traditional
fossil energy. Many developed countries, such as the United
States, Japan and the EU, are also continually increasing invest-
ment in R&D of fuel cells, the fuel cells will become one of the
development trends of the world energy. For China's future
energy strategies, although other renewable energies have a
rapid development speed, the fuel cell systems have their own
superiority. The fuel sources of fuel cell systems are extensive,
which can be obtained by conversion of solar, wind and other
clean energy. In addition, the fuel cell systems can be used in the
922 T. Zhongfu et al. / Renewable and Sustainable Energy Reviews 47 (2015) 912–923

Table 8
Comparative analysis of the three applications.
Source: authors, 2014.

Fields item Transport (fuel cell vehicles) Power station-distributed generation systems Portable applications

Cost High High Low

Reliability and life High Medium Medium
Auxiliary facilities request degree High Medium Medium
Policy support Many Many few
Market demand Many Medium Many
Technology satisfaction Good Lack Lack
Fuel obtaining and saving Difficult (hydrogen) Difficult (hydrogen, methane) Easy (methanol)

Fig. 12. Development framework of portable application field.

Fig. 9. Development framework of transport field. Source: authors, 2014.
Source: authors, 2014.

Fig. 10. Sales proportion forecasting of all types of vehicles.

Source: authors, 2014.

Fig. 13. Development structure of the fuel cell systems.

Source: authors, 2014.

Acknowledgment

This paper is supported by the National Natural Science

Foundation of China (Grant no. 71273090) and the CRG Project:
G-YK60 (RGC Reference: PolyU 5237/11E) .

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