(Yicai Global) March 19 -- Foshan, the southern Chinese city with the most hydrogen fuel cell vehicles in the country, is facing a shortage of hydrogen as it fails to keep up with growing demand.

The tight supply of hydrogen, both locally and in other places, is greatly affecting the normal operation of hydrogen fuel cell vehicles in the city, Lin Junfeng, president of Foshan Hydrogen Industry Association and general manager of Foshan Gaoming District Qingyu Public Transport, told Yicai Global.

Foshan, a large manufacturing base in southern Guangdong province, relies on hydrogen to run 448 zero-emission delivery trucks and 1,000 green buses that serve 56 bus routes across the city. Many vehicles have no fuel to run on, Lin said.

“Hydrogen supply is not stable,” a hydrogen fuel cell bus driver said. “Sometimes I can refuel my vehicle, sometimes I can’t,” he added.

However, the shortage should only be temporary, Lin said, adding that the problem will be resolved once a new plant in neighboring Dongguan city opens.

Costs have jumped to CNY80 (USD12) per kilogram from CNY70 last year. Even so, hydrogen refueling stations can barely make a profit, the head of one such station, surnamed Chen, said. Some stations are even operating at a loss to keep the vehicles on the road, he added.

Buying from neighboring provinces incurs high transport costs. “It costs around CNY10 (USD1.54) per kg for distances within 150 kilometers and more for longer routes,” Chen said.

The root of the problem is that Foshan cannot meet demand, an industry insider said. The number of hydrogen fuel vehicles has climbed five-fold since 2018 yet the city only has 17 functioning refueling stations. They are expensive and difficult to build as the country still relies on imports for the core components, such as storage tanks and compressors, the person said.

The shortage throws a cloud over Guangdong province’s ambitions to lead China in the use of this cleanest of renewable energies. As of the end of last year the province had 34 stations, a quarter of the country’s total, which it plans to increase to 300 by 2025.

Editors: Tang Shihua, Kim Taylor