The main activities of Demonstration for Fuel Cell Bus (FCB) Commercialization in China Part I had been implemented. An evaluation of Part I of this project was conducted from November 15th to 26th, 2004. The objectives were to assess the efforts made and results achieved in partnership building among the respective agencies and companies, and to review the approaches to access to potential partners and the methodologies in selection of proper fuel cell bus technologies and relevant supporting infrastructure for commercializing the environmental friendly public transportation in the Chinese cities.

      The evaluation mission consisted of Mr. Roland Wong (Team leader) and Dr. Yi Bao-lian (National expert). They visited UNDP Beijing Representative, Ministry of Finance, Ministry of Science and Technology, Beijing and Shanghai Project Offices, Beijing Sinohytec Co. Ltd. The evaluation mission gave high appraisement for the project achievement, as the evaluation report said, “Considering the achievement of Part I to date, project efficiency has been very good due to good management.” “Outputs have been already produced in a timely manner and with good quality.”

      Although this project faced technical regulations, standards and national policies constraints, which caused some difficulties on project implementation and coordination, the Part I project performance and results were satisfactory. Through analysis operational basis for project management established, commercially relevant demonstration of the technical feasibility of FCBs and their refueling station infrastructure in Beijing, the evaluation mission considered that project management office had implemented project immediate objectives effectively and achieved good effects, especially contracted with DC to procure 3 units of its FCBs and signed agreement with BP to construct a hydrogen refueling station in Beijing.

      In the report, evaluation mission suggested that Shanghai procures a newer generation FCB in part II. Because of the current active state of FC development in China and abroad, a new generation of FCBs will likely be available within 2 years with improved durability and reliability characteristics as well as lower costs. Thus introducing new FCBs in Shanghai different with Beijing will help to enlarge the benefits. Furthermore, this would better meet the project objectives of advancing FCB towards commercialization.

      Additionally, the report pointed out “The project has effectively built capacity within various Chinese academic and government agencies; the main positive impact of the project thus far has been to create a wider awareness of FCBs and the use of hydrogen fuel.” The evaluation mission visited with a large number of direct beneficiaries of the project, including municipal transportation companies, fuel cell and bus manufacturers and suppliers. Their views included a very positive view of the project and that the project was necessary for China to solve air pollution and energy problem.

      Finally, the report considered “The overall impact of a successful FCB demonstration in China is enormous both on reducing GHG emissions and sustainability, considering China has the world’s largest public transit sector, and is rapidly becoming the one of the world’s largest energy consumers of fossil fuels. Furthermore, there is a very good opportunity to showcase FCBs during the 2008 Olympics. The China FCB project can take the global lead amongst other UNDP/GEF FCB projects, thus the success and experiences from China project can be more relevant and effective for other developing countries.”