Citic Securities: It is expected that the "15th Five-Year Plan" may become the main period for the industrialization of green hydrogen and ammonia.

The report from CITIC Securities pointed out that on June 25th, the National Development and Reform Commission and the National Energy Administration issued the "15th Five-Year Plan for the Construction of a New Energy System", which for the first time included hydrogen energy and green fuels in the national energy overall plan as part of the non-fossil energy supply system. The plan sets a target for renewable energy hydrogen production to reach 2 million tons by 2030, and includes the construction of green hydrogen and ammonia production bases, inter-provincial hydrogen transportation networks, dedicated green methanol pipelines, and international shipping green fuel refueling centers as key projects in the new energy infrastructure. CITIC Securities believes that this plan marks the transition of hydrogen energy and green fuels from demonstration and exploration to full chain industrialization in terms of production, storage, transportation, and use, which could potentially replicate the driving effect of the "14th Five-Year Plan" on wind and solar power systems. It is expected that the "15th Five-Year Plan" could be a period of significant growth for the industrialization of green hydrogen and ammonia, and is optimistic about operators of green hydrogen and ammonia projects, electrolysis tank manufacturers, the fuel cell vehicle industry chain, and equipment companies benefiting from hydrogen transportation networks.