On the second half of year 2005, The Demonstration for Fuel Cell Bus Commercialization in China Project Phase II officially applied for approval by Global Environment Facility (GEF). Through UNDP China, Asia-Pacific Department, MOST, international and national experts, national PMO efforts, the project phase II has received the approval from GEF already. Currently, national PMO organize the preparation for project phase II inception.

The main objectives of project phase II is to purchase new generation FCBs for Shanghai and construct one hydrogen refueling station, consequently demonstrate in Shanghai; while continue Beijing FCBs demonstration. The project undertaking in different climate, geography and traffic situations in Beijing and Shanghai aims to analyze and assess the different technologies of FCB and hydrogen production. It will be assistance for improving the development of national FC technology.