China courier cradle bets big on hydrogen future with RMB 10.62B fuel cell hub

  • First 10-billion-yuan new energy manufacturing project breaks ground in courier-industry stronghold.
  • Hydrogen push aims to link logistics demand with next-gen commercial vehicle power.

A 10.62 billion yuan ($1.5 billion) fuel cell manufacturing base broke ground in Zhejiang’s Tonglu on March 31, marking the county’s largest-ever new energy industrial investment.

The ground-breaking event also signaled Tonglu’s deeper push into hydrogen-powered transport solutions.

The project, led by Zhongke Huayue (Zhejiang) New Energy Technology Corporation, will build a corporate headquarters alongside production lines capable of manufacturing 10,000 hydrogen fuel cell systems annually, covering power ranges from 80kW to 250kW.

Once operational, the first phase of the project, which stretches across 82,952 square meters of land, is expected to generate cumulative output worth 18 billion yuan within five years.

Tonglu has long been recognized as China’s “stronghold of private courier companies,” serving as headquarters of the largest five express logistics firms STO Express, ZTO Express, YTO Express, Yunda Holdings and Best Express.

The county is now positioning hydrogen as a natural extension of its logistics ecosystem. “Fuel cells are particularly suited to commercial vehicle scenarios such as freight transport,” Zheng Bo, CEO of Zhongke Huayue, was quoted as saying in local media reports. “We aim to use the county as a launchpad for a broader hydrogen industry ecosystem.”

Hydrogen energy, widely viewed as one of the cleanest power sources due to its high efficiency and low emissions, is increasingly being deployed in heavy trucks, maritime transport and building energy systems.

Authorities envision future autonomous delivery vehicles operating across Tonglu powered by locally produced hydrogen fuel cells.

A missing piece

The fuel cell project fills an important missing piece in Tonglu’s growing renewable energy cluster, which already hosts companies spanning photovoltaics, hydropower and energy storage but previously lacked a hydrogen segment.

With the introduction of the fuel-cell facility, local officials are setting their sights on a bigger goal.

“The investment is expected to create a multiplier effect, attracting upstream suppliers and downstream applications while strengthening the region’s manufacturing chain,” said Zheng Hao, deputy chief of Tonglu’s Economic and Information Technology Bureau.

According to him, a single anchor project by a so-called “industrial chain leader” could catalyze an integrated new energy ecosystem spanning solar, hydro, lithium and hydrogen.