China Petroleum and Chemical Corp, or Sinopec, the world's largest refiner, is continuously laying out its hydrogen industry plans, taking advantage of its extensive network of gas stations nationwide and its chemical by-products.

The company, which owns the largest number of gas stations nationwide, will mainly focus on the construction of hydrogen refueling stations for vehicles.

Ma Yongsheng, president of Sinopec Corp, said the company has already conducted related research on hydrogen fuel cells.

The company is one of five Chinese members and the only Chinese oil and gas member so far that has joined the Hydrogen Council, a global initiative of leading energy, transport and industry companies with a united vision and long-term ambition for hydrogen energy development.

As a zero-emission and pollution-free new energy, hydrogen fuel is considered an inevitable choice for China to conserve energy, cut emissions and develop the automobile industry in the long term.

Tong Dejian, president of Sinopec's Beijing subsidiary, also said the development of the hydrogen industry is in accordance with the company's industry position and Sinopec enjoys an advantage thanks to its gas station network and chemical products.

With current annual hydrogen production of 2 to 3 million metric tons per year, mostly from by-products of petroleum refining, ethylene production and hydrogen manufacturing, the company is seeking further cost reductions to 20 to 30 yuan ($3-4.5) per ton.

Analysts said the costs for producing hydrogen-powered vehicles can decrease through mass-production and the substitution of expensive metals.

Mao Zongqiang, a professor at the institute of nuclear and new energy technology of Tsinghua University, said he believes China is capable of pushing forward hydrogen industry development, lowering costs while ensuring product quality.

Many European companies are already seeking hydrogen industry development opportunities in China, as the country is expected to become the world's largest market for fuel cells by 2030, he said.

To push forward the development of hydrogen vehicles in the country, Huang He, president of the Hunan subsidiary of Sinopec and a deputy to the 13th National People's Congress, China's top legislature, suggested that the government should come up with detailed hydrogen vehicle industry development plans to avoid overheated investment, blind development and vicious competition.

He also suggested that supportive government policies would help companies carrying out research on key technologies for hydrogen energy utilization and fuel cell hydrogen storage and transportation.

Hydrogen energy should be promoted as a national development strategy to aid its industrial development, he said.

According to Huang, China is expected to see some 1,000 hydrogen refueling stations by 2030, but there is no detailed national network plan yet. He suggested the government attract investment from various fields to boost the industry's development while providing preferential financial policies.