A domestically built hydrogen-fueled bus is exhibited at China (Shanghai) International Technology Fair on Thursday. The environment-friendly bus is the product of a collaborative project between Japan, a forerunner in hydrogen energy vehicle development, and China. Photo: VCG

Shanghai plans to build a world-class "hydrogen energy harbor" in its Jiading district, the center of its automobile industry, to cultivate a sound industrial chain for hydrogen fuel cell vehicles (HFCV), the Xinhua News Agency reported Tuesday.

The hydrogen energy harbor will form an industrial cluster with a planned area of 2.15 square kilometers. The district has set a target that its whole HFCV industrial chain will exceed 50 billion yuan ($7.23 billion) in annual production by 2025, according to Xinhua.

The automobile industry center in Shanghai offers favorable conditions for the HFCV industry, said the report, adding that Shanghai will help to establish special funds for HFCV-related work and improve the sector's financial service system. 

"Shanghai leads the development of NEVs in China, so the move to build a hydrogen energy harbor could help it obtain more market share in the industry," Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Tuesday. Also, it could provide more practical applications of the new technology, Cui noted.

Jiading district launched 20 support measures including assistance with new business development, promotion of scientific and technological innovation, financial support and others, which cover the entire HFCV industry chain, Shanghai-based news outlet Xinmin Evening News reported Tuesday.

Hydrogen energy is considered a clean source of energy due to its environmentally friendly and renewable features, and China plans to have 2 million HFCVs on its roads by 2030, Xinhua said.