Chinese authorities in August approved five regional hydrogen city clusters under the country's four-year comprehensive hydrogen application pilot program. Following the approval, Impact Coatings is seeing increased orders and customer forecasts for coatings of PEM fuel cell bipolar plates in China. To meet the demand, the company’s Coating Service Center in Shanghai has resumed full one-shift operation and expects to transition to two-shift production toward the end of 2026.
The hydrogen pilot program was announced in March 2026 by China's Ministry of Industry and Information Technology (MIIT), Ministry of Finance (MOF), and National Development and Reform Commission (NDRC). With the five regional clusters approved during August 2026, the program is moving into implementation.
The five approved clusters comprise Beijing–Tianjin–Hebei, the Greater Bay Area, Northeast China/Eastern Inner Mongolia–Yangtze River Delta, Xinjiang–Chengdu–Chongqing, and the Yellow River/Central Plains region. Together, the clusters extend the program across several of China's major industrial regions, with effects throughout the hydrogen industry supply chain, including component suppliers that are customers of Impact Coatings.
The five regional clusters will be eligible for combined central-government funding of up to RMB 8 billion (approximately USD 1.1 billion) over four years. Funding will be front-loaded, with the highest level of support in the first year and then gradually decreasing.
The development is in line with Impact Coatings’ assessment in its Q2 2026 interim report, published on August 21, that the anticipated increase in fuel cell market demand following the announcement of the pilot program in March had been delayed, rather than reflecting a change in underlying market conditions.
“The approval of the five regional clusters provides the clarity the market has been waiting for. We are now seeing customers moving ahead with increased production, which is translating into increased orders for Impact Coatings. We believe customers are positioning themselves to secure market share, and we expect demand to grow as the program moves into implementation,” said Jonas Nilsson, CEO of Impact Coatings.
The program aims to scale hydrogen applications across industries and sectors and covers the hydrogen value chain from production and storage to transportation and end use. The four-year pilot program is in line with China's increased focus on hydrogen under the 15th Five-Year Plan (2026–2030).
China's strong policy support for hydrogen reflects the country's ambition to develop a globally leading hydrogen industry. The scale and long-term potential of the Chinese market were key reasons for Impact Coatings' early establishment in China. Through its local presence and Coating Service Center in Shanghai, the company has since established a leading position in the Chinese market for PVD coatings of fuel cell bipolar plates.
