(Yicai Global) June 10 -- Shanghai plans to build a hydrogen fuel cell industry cluster in the city's Jiading district, which is expected to generate CNY50 billion (USD7.2 billion) a year by 2025.

The 2.15-square-kilometer cluster will center on the suburban district's Anting town,  where Shanghai International Automobile City is located, the Shanghai Observer reported. Jiading district, which released a draft planning document today, will support corporate development and tech innovation as well as provide financing.

Hydrogen is seen as one of the world's most promising clean energy sources, and appeared in China's government work report for the first time this year with the aim of having 2 million hydrogen vehicles on the roads by 2030.

Jiading district has developed a complete industry system spanning hydrogen energy, fuel cells, power systems and related infrastructure, said Deputy Governor Shen Huadi. It will continue to promote the healthy and rapid development of the hydrogen energy industry and strive to achieve an annual output value of more than CNY50 billion from the industry by 2025, he added.

Under its new plan, Jiading aims to support and subsidize firms that prioritize local procurement and can pull off hydrogen fuel cell bus operations. It will also encourage firms to develop key materials for fuel cells and build technical centers at all levels, grant finished product sales incentives to patent holders and help them protect their rights.