The Liuheng administrative committee of the Zhoushan Archipelago New Area partners with YC Synergy (Hong Kong) Co Ltd. [Photo/zj.zjol.com.cn]

A hydrogen fuel cell system funded by the Hong Kong branch of YC Synergy Co Ltd, a fuel cell system and solution provider based in Taiwan, recently broke ground on Liuheng Island, Zhoushan, local media reported.

It is the first project in the hydrogen energy industry to be carried out in the city. 

With an investment of 100 million yuan ($14.49 million), construction the project will be divided to two phases.

In the first phase, the New Taipei City-based company will assist local bus operators in developing the city's first hydrogen-fueled bus line.

The second phase will see YC Synergy construct a R&D center as well as a production & testing base for hydrogen fuel cell system in Xiaoguoju Lingang Industrial Park on the island. 

In addition, it will also explore industrial chain expansion by seeking the application of hydrogen fuel cells in fields such as logistics, shipping and energy storage. 

China has been actively developing hydrogen energy in recent years and included the development of hydrogen stations for new energy vehicles in its government work report for the first time last year.

Relying on its stable supply of LNG, Zhoushan plans to coordinate with YC Synergy to construct Liuheng into a national demonstration island for hydrogen energy development.