40 state-owned capital entities in cities including Chengdu, Hefei and Qingdao are making intensive investments in the hydrogen energy sector, a track where 40% of the enterprises once faced the risk of disappearing is now being re-priced.

As the domestic hydrogen energy industry hits a low ebb, state-owned capital is accelerating its deployment into the hydrogen energy track.

Foresee Energy learned that recently, Chengdu Jiaotou Capital acquired a 3.23% equity stake in Xie Hydrogen New Energy for 30 million yuan. In the same month, Hefei Industrial Investment, in partnership with Luyang Science and Technology Innovation Group, invested in Han Hydrogen Power. Looking back earlier, Xiamen Torch Venture Capital entered Luda Hydrogen Energy, Qingdao Xinbo Holdings invested in Shanghai Anchi Technology, and Sinopec Capital made a 300 million-yuan strategic investment in Faurecia Hydrogen Energy.

This is just the tip of the iceberg.

According to incomplete statistics from Polaris Hydrogen Energy Network, more than 25 equity financing and strategic investment events occurred in the domestic hydrogen energy sector in the first half of 2026; 12 new hydrogen energy-related enterprises were established nationwide in the first quarter, with a total registered capital of over 440 million yuan. Chongqing's state-owned enterprises released 37 hydrogen industry projects in one go, with a total investment exceeding 8.3 billion yuan; the Jiyu Hydrogen Energy Industry Development Fund with a total scale of 20 billion yuan was launched.

On one hand, the production and sales of fuel cell vehicles fell by 62% and 43.7% respectively; on the other hand, state-owned capital is accelerating its aggressive acquisitions.

This is far from bottom-fishing. It is a complete re-pricing of the hydrogen energy track.

Acquiring companies and opening new markets: State-owned capital is "enclosing territory" in the hydrogen energy sector

Let's first take a look at what these state-owned capitals are buying.

Xie Hydrogen New Energy is the earliest domestic team to develop air-cooled hydrogen fuel cell systems, and holds the first domestic invention patent for air-cooled hydrogen fuel cells for drones. It completed three financings in the first half of this year, and in May, it secured a drone supply order from China Post Shanghai Branch. Chengdu Jiaotou's main business focuses on transportation infrastructure such as expressways, railways, and airports, but it also owns hydrogen refueling stations, battery swapping stations, and city-wide low-altitude operation management resources. Investing in Xie Hydrogen is not about acquiring a financial statement, but a scenario puzzle of "hydrogen-powered drones + hydrogen refueling facilities".

Han Hydrogen Power, whose core products support over 200 satellites, was founded by Dr. LIU Yanjie, former deputy director of the 801 Institute of Shanghai Academy of Spaceflight Technology. Hefei Industrial Investment's investment in it aims to achieve "dual-track" synergy between commercial aerospace propulsion systems and hydrogen energy technologies. Luda Hydrogen Energy is a PEM water electrolysis hydrogen production enterprise incubated by Tan Kah Kee Innovation Laboratory, and its equipment has been approved as the first (set) of major technical equipment in the national energy sector. Xiamen's state-owned capital's entry is a bet on the commercialization inflection point of green hydrogen production technology.

In Shandong, Qingdao's state-owned capital invested in a Shanghai-based company — Anchi Technology. Although it is a Shanghai company, Anchi Technology is relocating its headquarters and core production lines to Qingdao, with a total investment of 500 million yuan and a planned annual output of 10,000 sets of hydrogen fuel cell systems. This is not a financial investment, but a variant of investment attraction: using equity to "lock" the enterprise and its production capacity within its own jurisdiction.

Another path is to directly set up new companies.

In the first seven months of this year, there were nearly 10 cases where state-owned capital established hydrogen energy subsidiaries or launched related businesses. In April, Linyi Steel Investment Hydrogen Technology was established with a registered capital of 100 million yuan, relying on the steel industry resources to develop the "steel-coking-chemical-hydrogen" integration model. In the same month, China Coal (Suide) New Energy was established with a registered capital of 150 million yuan, whose business scope includes the sales of hydrogen refueling and hydrogen storage facilities for stations. Huaneng joined hands with the local finance bureau of Ningdu to establish Huaneng Dengfeng Industrial Investment. Sinopec and Chongqing Shaxing Energy jointly established Shaxing Ju Neng Energy. In June, Guang'an Energy Investment Hydrogen Energy was established with a registered capital of 20 million yuan. In the same month, Yangzhou State-owned Capital and Tianhe Yuan Hydrogen jointly established Jiangsu Yu Hydrogen Energy. Weifang Gas Group and private enterprises jointly established Guohe Energy.

Foresee Energy notes that the business scope of these new companies almost all includes "sales of hydrogen refueling and hydrogen storage facilities for stations". The new company established by China Energy Engineering Corporation in Jiuquan is no exception. State-owned capital is collectively heading in the same direction — hydrogen energy infrastructure.

The logic is very clear. In the electrochemical energy storage sector, there are CATL and BYD; in the photovoltaic sector, there are LONGi and Tongwei, but state-owned capital largely missed out on the early infrastructure investments in these fields. Hydrogen energy is different. Hydrogen refueling stations, hydrogen transmission pipelines, and hydrogen storage facilities are inherently infrastructure-related, featuring large investment scales and slow return cycles, which private enterprises are reluctant to undertake and cannot handle. State-owned capital entering the market now is seizing the "pricing power of hydrogen energy infrastructure".

Why now? The tougher the industry, the more aggressive state-owned capital becomes

The timing for state-owned capital to enter the market collectively coincides with a low ebb in the hydrogen energy industry.

In the first half of 2026, the number of filed green hydrogen-ammonia-alcohol projects decreased by 43%, and the filed production capacity dropped by 38%. The production and sales of fuel cell vehicles continued to weaken. The electrolyzer sector faces severe overcapacity, prices have plummeted, and gross profit margins have fallen below the break-even point. The entire industry is permeated with a sense of "disillusionment" — expectations are high, but reality is harsh.

Yet the logic of state-owned capital never centers on short-term financial returns.

Since 2024, China Energy Investment Corporation has increased its capital in hydrogen energy companies twice, raising the registered capital from 50 million yuan to 661 million yuan. China Energy Engineering Corporation has established a professional platform covering the entire hydrogen energy industry chain with a registered capital of 5 billion yuan. Jidian Co., Ltd. directly changed its name to "Power Investment Green Energy". The decision-making cycles for these moves are measured in five or ten years.

More crucially, there are changes on the demand side. The 15th Five-Year Plan has for the first time included hydrogen energy and green fuels in the non-fossil energy supply system, setting a clear goal of achieving 2 million tons of renewable energy hydrogen production capacity by 2030. After the national carbon market is expanded to the petrochemical and chemical industries, leading enterprises have real incentives to purchase green hydrogen to reduce carbon emissions under the pressure of the "dual carbon control" assessment.

In other words, the policy "starting gun" has already gone off, but the players on the track are not yet in position. State-owned capital entering the market now is not here to be a spectator.

But don't get too excited: State-owned capital is never a "free lunch"

The entry of state-owned capital is a good thing for the industry, but not necessarily a good thing for all enterprises.

Enterprises selected by state-owned capital, such as Xie Hydrogen, Han Hydrogen Power, Luda Hydrogen Energy, and Anchi Technology, have obtained not only funds, but also credit endorsements and scenario resources. After receiving equity investment from Chengdu Jiaotou, Xie Hydrogen has already laid out a hydrogen fuel cell and drone production base in Chengdu. After obtaining investment from Qingdao's state-owned capital, Anchi Technology directly secured the landing policies of the Qingdao Hydrogen Energy Industrial Park.

But what about those that are not selected?

The industry is accelerating its differentiation. Technologically leading private enterprises are "locked in" by state-owned capital, gaining opportunities for accelerated growth; small and medium-sized enterprises lacking core competitiveness are inherently at a disadvantage in project bidding led by state-owned capital. Some experts predict that by the end of 2026, about 40% of enterprises in the hydrogen energy industry chain may disappear. This sounds cruel, but the photovoltaic and new energy vehicle industries have both experienced a similar "valley of death" — less than one-tenth of the enterprises ultimately survived.

The entry of state-owned capital has also brought a hidden change: industry standards are being redefined. State-owned capital-backed projects are large in scale, with higher requirements for product reliability, consistency, and cost-effectiveness. This will force upstream equipment suppliers of electrolyzers, membranes, valves, and compressors to improve their manufacturing levels. While it brings short-term pressure, it acts as a long-term catalyst for industrial upgrading.

Foresee Energy believes that state-owned capital often spans multiple sectors such as energy, chemicals, transportation, and steel. Their entry will naturally break down industry barriers and promote the substantial implementation of integrated business models such as "hydrogen energy + chemicals", "hydrogen energy + steel", and "hydrogen energy + transportation". This is something that no single enterprise can accomplish alone, requiring cross-industry resource integration capabilities — which is precisely the strength of state-owned capital.

The hydrogen energy industry is at a peculiar juncture: the industry as a whole is losing money, but its strategic value is rising; private enterprises are contracting, while state-owned capital is expanding; there is no short-term return in sight, but no one dares to hold back investment in the long run.

This is a misaligned resonance.

The signal of state-owned capital entering the market collectively is clear: there is nothing wrong with the hydrogen energy track, the problem lies in the short-term business model. And what state-owned capital has in abundance is exactly the patience to "wait it out".

When names like "China Coal", "Huaneng", and "Sinopec" appear on the shareholder lists of hydrogen energy companies, the rules of the industry game have already changed. The next question is no longer "can hydrogen energy succeed", but "who can survive until the day it succeeds".

This grand drama has only just begun.