Hydrogen Refuelling Stations

A hydrogen refuelling station refers to dedicated infrastructure that provides hydrogen dispensing services for fuel cell electric vehicles (FCEVs). By managing pressurisation, storage, and metering, it safely delivers hydrogen into on-board fuel cylinders—playing a role akin to petrol stations in conventional internal combustion engine vehicle ecosystems, and serving as a critical pillar for commercialising hydrogen mobility.

Basic Composition and Classification

The core equipment of a hydrogen refuelling station comprises hydrogen compressors, hydrogen storage vessels, and dispensers, with their performance directly dictating the station's overall refuelling capacity. Among these, the compressor is the most critical component, accounting for roughly 32% of total station construction costs; historically reliant on imports, its domestic localisation rate has seen substantial gains in recent years.

Hydrogen refuelling stations can be categorised in several ways. Based on the hydrogen supply source, they are divided into off-site delivery stations (where hydrogen is transported from external facilities) and on-site generation stations (where hydrogen is produced directly on premises). By construction form, they are split into permanent fixed and skid-mounted types; by dispensing pressure, they operate at either 35 MPa or 70 MPa ratings, with the latter offering vehicles a significantly longer driving range.

Current Construction and Operational Status

China has established the world's largest hydrogen refuelling network, with 560 stations built and operational nationwide as of June 2025. Nevertheless, this still falls short of provincial aggregate targets exceeding 1,000 stations, alongside noticeable regional disparities in distribution.

However, most stations currently face severe profitability challenges. At present, the average station caters to merely around 43 vehicles, leading to extremely low facility utilisation rates. Consequently, the vast majority operate at a loss and remain heavily reliant on government subsidies.

Cost Breakdown and Core Pain Points: High Capex vs High Fuel Costs

The root cause behind the operational struggles of hydrogen stations lies in persistently high cost structures, broadly categorised within the industry as two main pain points: high construction capital expenditure (capex) and expensive hydrogen fuel.

Construction Costs ("High Station Capex"): For a fixed station with a daily dispensing capacity of 500 kg, equipment expenditure alone stands at roughly RM5,000,000 to RM7,000,000. Factoring in land acquisition and ancillary expenses, total investment often reaches RM10,000,000 to RM30,000,000. Complex regulatory approval processes, steep land costs, and past dependency on imported key components have been the primary drivers inflating capex.

Hydrogen Fuel Costs ("Expensive Hydrogen"): The retail pump price of hydrogen is pivotal to station commercial viability and end-user running costs. In October 2025, the national average retail price for fuel-cell grade hydrogen hovered around RM35.80/kg, exceeding RM40/kg in unsubsidised regions. By comparison, only when the pump price drops below RM25/kg can hydrogen commercial heavy-duty trucks achieve operational cost parity with conventional diesel vehicles. With storage and logistics accounting for nearly half of the retail hydrogen cost, transport bottlenecks continue to severely inflate end-user pricing.

Future Development Trends

To navigate these headwinds, the industry is pursuing solutions across several fronts.

Reducing Capex and Operational Expenditure (Opex): On one hand, accelerating domestic manufacturing of core machinery such as compressors to curb upfront capex; on the other hand, promoting models like integrated petrol-hydrogen stations and on-site hydrogen generation and refuelling stations. The former leverages established petrol station footprints to cut land acquisition costs, while the latter circumvents costly logistics and transport overheads.

Exploring New Business Models and Policy Support: Various regions are adopting collaborative rollouts where infrastructure development and fleet deployment occur hand-in-hand to boost pump utilisation rates. At the same time, regional subsidies (such as Nanhai in Guangdong providing an RM18/kg subsidy) remain a crucial lifeline sustaining daily station operations.