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[SMM Hydrogen Energy Policy Update] Sichuan Provincial Budgetary Funds Prioritize Support for Hydrogen Energy Projects

  • Aug 11, 2025, at 9:16 am

Recently, the Sichuan Provincial Development and Reform Commission issued a notice regarding the "Special Management Measures for Provincial Budgetary Capital Construction Investment in Energy Conservation, Carbon Reduction, and Energy Structure Optimization in Sichuan Province."

The document specifies that this special fund primarily supports key industries and critical areas, including energy efficiency improvement, comprehensive utilization of resources and circular economy, low-carbon initiatives, clean coal utilization, energy efficiency upgrades and clean utilization of coal-fired power units, new-type energy storage and hydrogen energy applications in the energy sector, ultra-low emission upgrades for waste-to-energy plants, green and low-carbon transformation on the energy consumption side, and rural power grid upgrades in designated townships.

Key support areas for hydrogen energy include:

Low-carbon projects. Major low-carbon, zero-carbon, and negative-carbon technology demonstration and promotion projects such as carbon capture, utilization, and storage (CCUS), hydrogen-based metallurgy projects, key supporting projects for zero-carbon industrial park construction, major energy-saving and low-carbon technology industrialization demonstration projects, key environmental protection industry development projects, and ecological product value realization initiatives.

New-type energy storage and hydrogen energy projects in the energy sector. Independent new-type energy storage systems, renewable energy-based hydrogen production, and hydrogen energy application projects in the energy field.

The provincial budgetary investment stipulated in these measures allocates funds as follows: for energy efficiency improvement projects, comprehensive resource utilization and circular economy projects, low-carbon projects, new-type energy storage and hydrogen energy projects in the energy sector, and energy efficiency upgrades and clean utilization projects for coal-fired power units—each project may receive up to 15% of its total investment, with a maximum allocation of 20 million yuan per project. Green and low-carbon energy-saving renovation projects for provincial-level public institutions are generally fully funded.

It should be noted that this special provincial budgetary investment must be allocated to planned new projects or ongoing projects that comply with relevant policies and planning requirements, have complete preliminary procedures, and meet construction readiness conditions. Funds cannot be used for completed projects (including trial operation phases).

Policy details:

Notice on Issuing the "Special Management Measures for Provincial Budgetary Capital Construction Investment in Energy Conservation, Carbon Reduction, and Energy Structure Optimization in Sichuan Province"

(Chuan Fa Gai Huan Zi Gui [2025] No. 362)

To: Development and Reform Commissions of various cities (prefectures), relevant provincial departments and units:

To standardize and strengthen the management of provincial budgetary capital construction investment for the special fund on energy conservation, carbon reduction, and energy structure optimization, ensure the standardized and efficient use of provincial budgetary funds, and effectively leverage fiscal guidance for promoting green, low-carbon, and circular development across the province, the Commission has formulated the "Special Management Measures for Provincial Budgetary Capital Construction Investment in Energy Conservation, Carbon Reduction, and Energy Structure Optimization in Sichuan Province" based on relevant central and provincial budgetary investment management regulations and practical considerations. The measures are hereby issued for implementation.

Sichuan Provincial Development and Reform Commission

Aug 4, 2025

Special Management Measures for Provincial Budgetary Capital Construction Investment in Energy Conservation, Carbon Reduction, and Energy Structure Optimization in Sichuan Province

Chapter I General Provisions

Article 1 These Measures are formulated to standardize and strengthen the management of provincial budgetary capital construction investment in energy conservation, carbon reduction, and energy structure optimization, enhance its guiding role in promoting green, low-carbon, and circular development across the province, and advance carbon peaking and carbon neutrality in an orderly manner, in accordance with the Administrative Measures for Central Budgetary Investment Subsidies and Interest Discount Projects (NDRC Order No. 45, 2016), the Special Management Measures for Energy Conservation and Carbon Reduction Central Budgetary Investment (NDRC Resource Conservation and Environmental Protection Regulation [2024] No. 338), the Administrative Measures for Sichuan Provincial Budgetary Capital Construction Investment (Sichuan Development and Reform Investment Regulation [2019] No. 463), and relevant laws and regulations.

Article 2 These Measures apply to the management of projects in energy conservation, carbon reduction, and energy structure optimization funded by provincial budgetary capital construction investment (hereinafter referred to as "provincial budgetary investment") allocated by the Sichuan Provincial Development and Reform Commission (including the Provincial Energy Bureau) (hereinafter referred to as "the Provincial Development and Reform Commission," the same hereinafter). The provincial budgetary investment under these Measures primarily takes the form of investment subsidies or direct investment.

Article 3 Provincial budgetary investment under this special program shall be allocated to planned new projects or ongoing projects that comply with relevant policies and planning requirements, have complete preliminary procedures, and meet the conditions for commencement. It shall not be used for completed projects (including trial operation).

Chapter II Scope and Standards of Support

Article 4 This special program focuses on supporting key industries and sectors in energy efficiency improvement, comprehensive resource utilization and circular economy, low-carbon initiatives, clean coal utilization, energy efficiency upgrades and clean utilization of coal-fired power units, new-type energy storage and hydrogen energy in the energy sector, ultra-low emission upgrades for waste-to-energy plants, green and low-carbon transformation on the energy consumption side, and rural power grid upgrades in reformed townships. Key support areas include:

(1) Energy efficiency improvement projects. Energy-saving upgrades in key industries such as power, steel, nonferrous metals, building materials, petrochemicals, chemicals, coal, coking, textiles, papermaking, printing and dyeing, and machinery, as well as energy substitution projects; comprehensive energy efficiency enhancements such as energy cascade utilization and system optimization in key energy-consuming units and industrial parks; centralized heating and combined heat and power generation in industrial parks; clean production upgrades; and energy-saving renovations in provincial-level public institutions.

(2) Comprehensive resource utilization and circular economy projects. Circular transformation of industrial parks, upgrades to resource recycling demonstration bases, construction of waste material recycling systems, recycling of steel scrap, nonferrous metal scrap, glass scrap, rubber scrap, end-of-life vehicles, waste batteries, discarded electrical and electronic products, used textiles, and decommissioned wind and PV equipment; comprehensive utilization of solid waste such as tailings (co-associated ores), coal gangue, fly ash, metallurgical slag, industrial by-product gypsum, construction waste, and waste slag from dumping sites; and production of biodegradable plastics, recyclable express packaging, and bamboo-based plastic substitutes.

(III) Low-carbon projects. Major low-carbon, zero-carbon, and negative-carbon technology demonstration, promotion, and application projects, such as carbon capture, utilization, and storage (CCUS), hydrogen metallurgy projects, key supporting projects for the construction of zero-carbon parks, major energy-saving and low-carbon technology industrialization demonstration projects, key projects for the development of energy-saving and environmental protection industries, and projects for the realization of the value of ecological products.

(IV) Projects for the clean utilization of coal. Projects for the efficient and clean utilization of coal, projects for the large-scale extraction and utilization of coalbed methane (mine gas), projects for the utilization of ultra-low concentration methane (below 8%), projects for the utilization of waste heat and pressure, projects for the industrialization of coal-based clean fuels and high-end materials, projects for the resourceful utilization and near-zero emission of bulk solid waste in mining areas, and projects for the coupling construction of smart energy management and new energy in mining areas.

(V) Projects for energy-saving, efficiency-improving, upgrading, and clean utilization of coal-fired power units. Projects for the upgrading and transformation of coal-fired power units to reduce coal consumption for power supply or pollutant emissions from in-service coal-fired power units, such as the transformation of turbine flow passages, the deep utilization of waste heat from the cold ends of boilers and turbines, the cascade utilization of energy from coal-fired power units, the comprehensive upgrading of high-temperature subcritical units, and the clean utilization of coal-fired power units.

(VI) Projects for new-type energy storage and hydrogen energy in the energy sector. Independent new-type energy storage projects and projects for hydrogen production from renewable energy and its application in the hydrogen energy sector.

(VII) Projects for the ultra-low emission transformation and upgrading of domestic waste incineration power plants. Projects for the transformation of facilities such as deacidification and denitrification in existing domestic waste incineration power plants, as well as projects for the upgrading of flue gas systems.

(VIII) Projects for the green and low-carbon transformation of energy consumption. Projects for the construction or transformation of charging infrastructure that meet the requirements for high-quality development.

(IX) Projects for rural power grids in towns and villages undergoing reform. Projects for the construction or transformation of rural power grids in towns and villages undergoing reform that meet the requirements for high-quality development.

(X) Projects in our province that require provincial matching funds as arranged by the state.

(XI) Other projects determined to be supported by the provincial party committee and provincial government.

Article 5 When the Provincial Development and Reform Commission organizes the annual application for provincial budgetary investment projects, it shall determine the specific scope and requirements for supported projects in that year based on the relevant work arrangements of the state and the provincial party committee and provincial government, as well as the needs of work tasks, and clarify them in the annual application notice.

Article 6 The specific arrangement standards for the provincial budgetary investment funds stipulated in this measure are as follows:

(I) Energy-saving and efficiency-improving projects, resource comprehensive utilization and circular economy projects, low-carbon projects, new-type energy storage and hydrogen energy projects in the energy sector, and projects for energy-saving, efficiency-improving, upgrading, and clean utilization of coal-fired power units: The funds arranged for a single project shall not exceed 15% of the total investment, and the amount arranged for a single project shall not exceed 20 million yuan in principle. Provincial government agencies' green, low-carbon, and energy-saving renovation projects shall, in principle, receive full funding allocations.

(II) Coal Clean Utilization Projects: The funding allocated to a single project shall not exceed 30% of the total investment, with the maximum amount per project capped at 20 million yuan in principle.

(III) Ultra-Low Emission Upgrading Projects for Waste Incineration Power Plants: The funding allocated to a single project shall not exceed 60% of the total investment, with the maximum amount per project capped at 20 million yuan in principle.

(IV) New or Renovated Charging Infrastructure Projects Meeting High-Quality Development Requirements: For new projects, the funding allocation shall not exceed 40% of the total investment; for renovation projects, it shall not exceed 50% of the incremental investment, with the maximum amount per project capped at 1 million yuan in principle.

(V) New or Renovated Rural Power Grid Projects in Townships Meeting High-Quality Development Requirements: The funding allocation shall not exceed 10% of the total project investment (as audited in the financial settlement), with the maximum amount per project capped at 1 million yuan in principle.

(VI) Projects designated by the Provincial Party Committee or Provincial Government requiring provincial budget investment support shall be allocated funds in accordance with the methods and amounts determined by the Provincial Party Committee and Government. Projects requiring provincial matching funds as stipulated by the state shall be arranged in compliance with national and provincial requirements.

(VII) The calculation base for project investment subsidies or direct investments shall exclude costs arising from newly allocated land.

Article 7: The development and reform departments of the relevant cities (prefectures) and counties (cities/districts) shall strengthen preliminary project work, reasonably determine the construction scale and main components, and propose appropriate investment demands based on project reserves, local fiscal capacity, and prioritization, adhering to the principles of doing their best within their means. Exaggerated investment demands or issues such as "over-reporting with under-construction" or "unfinished projects" are strictly prohibited.

Chapter III: Investment Plan Application

Article 8: Applications for provincial budget investment under this special program shall meet the following basic conditions:

(I) Comply with the funding support scope specified in this program.

(II) Have not received central budget investment support (excluding projects requiring provincial matching funds as arranged by the state).

(III) Have not received provincial budget investment or other provincial fiscal funding support.

(IV) The project has completed the required preliminary work in its respective sector, is included in the project reserve database and three-year rolling investment plan, and has undergone approval, verification, or filing via the online investment project regulatory platform (government-funded projects must complete feasibility study reports or preliminary design approvals). Planning permits, land approvals, energy conservation reviews, environmental impact assessments, and other preliminary procedures must be complete and compliant (if certain procedures are not required, a written explanation from the competent authority must be provided). Basic construction conditions must be met, with new projects ready for commencement and ongoing projects not exceeding 50% completion at the time of application.

(5) Effective supervision measures and performance management measures shall be in place.

Article 9 The municipal (prefectural) development and reform commissions, relevant provincial departments (units), and provincial-owned enterprises shall serve as the project aggregation and declaration entities for this special program. They shall organize the annual declaration of provincial budgeted investment plans in a timely manner in accordance with the arrangement principles, support scope, and declaration requirements specified in these Measures and the annual declaration notices issued by the Provincial Development and Reform Commission.

Article 10 For projects applying for provincial budgeted investment under this special program, the project entities shall submit fund application reports to the aggregation and declaration entities through proper procedures. The fund application reports shall include the following contents:

(1) Basic information of the project entity.

(2) Basic information of the project, including the project code generated by the National Investment Project Online Approval and Supervision Platform, construction content, and implementation status of construction conditions.

(3) The project has completed the approval (verification, filing) process through the National Investment Project Online Approval and Supervision Platform.

(4) The main reasons and policy basis for applying for investment support.

(5) Project construction plan, including the necessity of the project, site selection, construction scale, construction content, process plan, product plan, equipment plan, and engineering plan.

(6) Project investment estimate, including the main quantity table, main equipment table, and investment estimate table.

(7) Project construction funding guarantee, including the sources and methods of project funding.

(8) Project implementation progress, including the overall schedule of the project, as well as the completed construction content and investment.

(9) Project performance effects, such as energy-saving and carbon reduction results, comprehensive utilization of resources, and reduction of pollutant emissions, with the calculation process provided.

(10) Relevant attachments, including copies of preliminary procedures such as project planning permits, land use approvals, energy-saving reviews, and environmental impact assessments (if required), as well as the status of fund availability.

(11) The project entity shall be responsible for the authenticity and compliance of the materials submitted and make a written commitment.

Article 11 The aggregation and declaration entities shall review the fund application reports, including on-site verification, and shall be responsible for the review results and the authenticity and compliance of the declaration materials. The review shall focus on whether the project complies with the funding direction specified in this special program, whether the main construction conditions are met, whether the construction content is economically feasible, whether the declared investment meets the arrangement standards, whether there is duplicate investment arrangement, whether the project has been included in other central or provincial budgeted investment or other provincial fiscal fund support programs, whether the project has completed the approval (verification, filing) process through the National Investment Project Online Approval and Supervision Platform, and whether the project entity is listed as a seriously dishonest entity or involves safety hazards affecting security and stability.

Article 12 The unit responsible for consolidated reporting shall submit the approved projects to the Provincial Development and Reform Commission, along with the funding application report and investment plan request.

Chapter 4 Issuance and Management of Investment Plans

Article 13 The provincial budgetary funds for basic construction under this special program are allocated directly to specific projects.

Article 14 After receiving the funding application report, the Provincial Development and Reform Commission organizes an evaluation and review based on the specific circumstances. The content of the assessment and review includes, but is not limited to:

(i) Whether it complies with the support directions clearly stated in these measures and the annual application notices, and whether the portion of the investment that aligns with the investment direction accounts for more than 50% of the total investment.

(ii) Whether the relevant documents and preliminary procedures submitted are complete and valid, and whether there is any unapproved construction.

(iii) The rationality and feasibility of the project implementation plan.

(iv) The advanced nature and applicability of the project's process technology.

(v) Whether the construction progress exceeds 50% at the time of application.

(vi) The energy-saving, carbon reduction, comprehensive utilization of resources, and pollutant emission reduction effects after the project is completed.

(vii) Whether the project entity is listed as a seriously untrustworthy subject.

(viii) Whether there are safety hazards affecting safety and stability.

Article 15 Based on the evaluation results, the Provincial Development and Reform Commission selects projects for the issuance of investment plans, taking into comprehensive consideration the construction tasks in various fields, the execution of the special program in the previous year, performance evaluations, supervision, and inspection results.

The investment plan is issued once or in installments according to the project implementation and annual funding arrangements. For projects with installment investment plans, the provincial budgetary investment should be determined in one go in principle, with 50% of the funds arranged in the first instance, and the remaining funds will be allocated based on the progress of the project.

Article 16 Projects supported by this special program must strictly comply with national and provincial laws, regulations, and policy requirements. They must be implemented according to the overall and performance goals officially confirmed after the review and evaluation, without arbitrarily changing the main construction content and standards. Any changes must be approved through the proper procedures. It is strictly forbidden to transfer, misappropriate, or divert the special funds. Strict adherence to safety production requirements is mandatory.

Article 17 For projects with installment investment plans, the unit responsible for consolidated reporting shall conduct a progress evaluation of the project by the end of the year when the first investment plan is issued. For projects with good construction progress and satisfactory performance targets, the unit responsible for consolidated reporting shall submit a request to the Provincial Development and Reform Commission for the issuance of the second investment plan. After accepting the request, the Provincial Development and Reform Commission allocated follow-up funds in accordance with procedures.

Article 18 The project aggregation and reporting unit shall, in conjunction with relevant industry management departments, comprehensively strengthen project implementation supervision according to their respective responsibilities. It shall organize project units to accurately, completely, and timely submit information such as project approval, commencement status, investment completion, construction progress, and completion through the Sichuan Provincial Investment Project Management Service Platform by the 10th of each month. Relevant project documents shall be uploaded promptly in line with construction progress.

Article 19 The direct management unit or competent industry department of a project, as the entity responsible for daily supervision, shall fulfill its oversight duties. Through measures such as self-inspections, review checks, and on-site inspections, it shall intensify supervision and inspection of provincial budget-funded projects regarding fund utilization and construction progress.

Project units shall implement the project legal person responsibility system, tender and bid system, construction supervision system, contract management system, and relevant regulations for central budget-funded investment projects. For provincial budget-funded investments under this special program, independent accounting and earmarked use of funds shall be ensured.

Article 20 A project adjustment mechanism shall be implemented. Projects meeting any of the following conditions shall be promptly adjusted and removed from the support scope:

(1) Failing to commence construction within one year after the provincial budget-funded investment plan is issued.

(2) Experiencing a construction period extension exceeding six months.

(3) Undergoing significant changes in total investment, construction scale, standards, or content, making it impossible to achieve the planned construction objectives on schedule.

(4) Provincial budget funds not being disbursed in line with project progress and remaining idle for over six months.

(5) Substantial changes occurring in the project’s responsible entity.

(6) Special funds being misused, left idle, or other reasons causing failure to complete the planned construction objectives on schedule.

For projects requiring adjustment, municipal (prefectural) development and reform departments shall, in coordination with finance departments, promptly recover funds. Eligible replacement projects shall be selected, and adjustment applications shall be submitted to the Provincial Development and Reform Commission for approval. Removed projects will no longer receive provincial budget-funded support. Adjustments for provincial-level projects shall follow relevant regulations. Adjustment results shall be promptly updated and reported on the National Investment Project Online Approval and Supervision Platform or the Sichuan Provincial Investment Project Management Service Platform.

Article 21 A project completion reporting system shall be implemented. For projects where construction is completed and conditions for acceptance are met, the project unit shall submit a completion report to the local development and reform department and promptly update information on the Sichuan Provincial Investment Project Management Service Platform. The project aggregation and reporting unit shall organize relevant parties to conduct acceptance inspections (which shall generally be completed within six months after project completion) and report the results to the Provincial Development and Reform Commission. The provincial budget investment allocated to relevant provincial-level units shall have their completion reports and acceptance results submitted by the respective units to the Provincial Development and Reform Commission, with updates made to the Sichuan Provincial Investment Project Management Service Platform. The completion report primarily includes: project construction progress, fund utilization, implementation of construction plans, and achievement of expected outcomes.

During the acceptance process, if a project fails to meet the task objectives or performance targets as required by the investment plan, the project unit shall complete rectification within six months and apply for re-inspection. For projects that still fail to pass inspection after the rectification period, the full amount of provincial budget investment shall be reclaimed.

Chapter V Supplementary Provisions

Article 22 The interpretation of these Measures shall be the responsibility of the Provincial Development and Reform Commission.

Article 23 Matters not covered in the declaration, review, and allocation of fund plans, as well as project implementation management, project performance management, and supervision and inspection, shall be handled in accordance with the "Sichuan Provincial Budgetary Capital Construction Investment Management Measures" and other relevant regulations, as well as the annual declaration notices for this special program.

Article 24 These Measures shall come into effect on the date of issuance and remain valid for five years. The "Sichuan Provincial Budgetary Capital Construction Investment Management Measures for Pollution Control and Energy Conservation and Carbon Reduction" (Chuan Development and Reform Environmental Resources Regulation [2022] No. 597) shall be repealed simultaneously.

Source: Sichuan Provincial Development and Reform Commission

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