(Yicai Global) June 27 -- Hydrogen, which is currently a rare energy source in China, is estimated to make up around 10 percent of China's energy mix by 2050, according to a national hydrogen alliance.

Demand for hydrogen will be nearly 60 million tons each year, which will yield an annual economic output of CNY10 trillion (USD1.5 trillion) by 2050, the China National Alliance of Hydrogen and Fuel Cell said in a report published yesterday.

In March, China's government started promoting the clean fuel for long-distance transport in the world's largest electric vehicle market. However, most of the 23 hydrogen refueling stations (as of late last year) do not meet the demand of commercial operation due to their design and technology, according to the alliance. Chinese hydrogen stations still take up 6.2 percent of the global total, according to public data.

China will make 5.2 million fuel cell vehicles each year and have more than 10,000 hydrogen refueling stations by 2050, the report predicted. Fuel cell vehicles are electric cars that use fuel such as hydrogen instead of batteries.

In a shorter range, between 2020 and 2025, China's hydrogen industry will yield an output worth CNY1 trillion, the report forecast. The country will have 50,000 hydrogen vehicles and 200 hydrogen refueling stations, it added.

Editor: Emmi Laine