The country has been investing heavily in new energy in recent years. According to a global trend in renewable energy investment report by the UN Environment Programme and Bloomberg New Energy Finance, China was the world's leading investor in renewable energy in 2017.

Many insiders expressed optimism about the future of hydrogen fuel cell vehicles, which are believed to have long cruising ranges and can be refueled within three to five minutes.

According to Li Jianqiu, deputy director of the department of automotive engineering at Tsinghua University, China has mastered the core technologies of the hydrogen fuel cell and produced more than 1,000 hydrogen fuel cell vehicles last year, the most made by any country in a single year.

Despite a late start, China has made rapid progress in hydrogen energy development, he said.

Han Xiaoping, chief information officer of China Energy Net Consulting, also regards hydrogen as a promising alternative fuel as China has become the world's largest producer and consumer of energy.

Some analysts, however, also warn that companies should be rational while developing or investing in the hydrogen sector, and the government should come up with detailed plans and coordination to prevent companies from wasting time and resources.

"The government has encouraged the development of hydrogen energy, but there are no specific policies to give the industry clear guidance," said Kou Nannan, a senior associate with Bloomberg New Energy Finance's advanced transport sector.

According to the Revolutionary Innovation Plan on Energy Technology from 2016 to 2030 released by the National Development and Reform Commission, the development of hydrogen energy and fuel cell vehicles is considered as one of 15 tasks designed to facilitate the country's energy transition. However, no detailed plans or guidelines to coordinate and manage resources in the industry have been released.

"While large sums of money have already been invested in developing electric vehicles, very little has been spent on hydrogen energy," said Kou.

"Hydrogen vehicles, despite being more promising compared with electric vehicles, still lack a mature standard and are far from commercialization either in production, transportation or refueling, and development is not a matter of three or five years," he said.

It's necessary that companies continuously conduct relative research instead of seizing a chance to seek private gain for national subsidies, like those in the initial stages of the solar and wind sectors, he said.

Kou also suggested companies invest more in research to further boost the sector, as China is still lagging behind other countries with insufficient experts and researchers.

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