(Yicai Global) Nov. 4 -- Shanghai is preparing to heavily subsidize hydrogen fuel as well as key players in the fuel cell industry, such as carmakers, parts manufacturers and refueling station builders, over the next four years to realize its green targets.

The city will subsidize the sale of hydrogen by CNY20 (USD3) per kilogram for retail prices up to a maximum of CNY35 (USD5.50) per kg, the municipal government said yesterday. This equates to an allowance of at least 57 percent of the price of the fuel, but the amount will drop each year until 2025, it added.

To realize its goal of building 100 hydrogen refueling stations between now and 2025, the city will reimburse 30 percent of the investment in stations that are completed and fully licensed before 2025 to a maximum of CNY5 million (USD781,800).

Carmakers that meet the specified criteria will be given CNY200,000 (USD31,280) per point, on a scale set by the government that has a maximum of six points. Manufacturers of core parts, such as membrane electrodes, catalysts, carbon paper, air compressors, hydrogen circulation systems and hydrogen storage cylinder valves, will be granted CNY30,000 (USD4,690) per point.

Editor: Kim Taylor