Hyundai Motor Group plans to expand operations at its HTWO Guangzhou facility -- its first overseas hydrogen fuel cell system production plant -- by initiating pilot projects for commercial hydrogen fuel cell vehicles this year.

Lee Hyuk-joon, executive vice president of Hyundai Motor Group China, detailed the initiative Tuesday at the 10th Annual Guangzhou International Investment Conference. Hyundai HTWO is a dedicated brand created by the Hyundai Motor Group to represent their hydrogen fuel cell technology.

The focus of Hyundai's efforts in Guangzhou is to elevate the city to become one of the world’s major centers for hydrogen energy, working in close partnership with local stakeholders. Hyundai plans to disclose further details of upcoming projects with the Guangzhou government to enhance the worldwide hydrogen energy network.

HTWO Guangzhou is already making strides with its pilot projects aimed at promoting hydrogen fuel cell vehicles. In the past year, it announced plans to deliver 1,500 hydrogen-powered commercial vehicles, including trucks and cleaning vehicles, to public enterprises in Guangdong Province and Guangzhou City.

The initiative is supported by the Guangdong provincial government’s introduction of investment-friendly policies. These reforms are designed to boost the manufacturing sector's competitiveness and enhance the overall investment climate.

Foreign direct investment in Guangzhou reached 48.22 billion yuan ($666.3 million) last year, and over 1,000 new foreign-invested companies were established in just the first two months of this year, marking an increase of 56.7 percent compared to the previous year.

The demand for hydrogen vehicles in China has grown rapidly, with Guangzhou leading the surge. It is projected that by 2035, China will host one of the largest hydrogen electric vehicle markets globally. In line with this, the China Society of Automotive Engineers released the Energy-saving and New Energy Vehicle Technology Roadmap 2.0 in October 2020, which targets the deployment of 1 million hydrogen electric vehicles, primarily commercial, by 2035.

HTWO Guangzhou began operations in June last year and is capable of producing 6,500 hydrogen fuel cell systems annually.