CHINA is drafting a technical standard on fuel cell back-up power source which has advantages over conventional batteries and it is also more friendly to the environment, according to industry insiders.

The standard, with input from domestic firms, including China Mobile, China Telecom and telecom equipment producer Huawei Technologies Co, has been under scrutiny after it was submitted to the Ministry of Industry and Information Technology, a source told Shanghai Daily yesterday.

It is expected to be released as early as the end of this year, the source said.

Fuel cell back-up power source is becoming more popular as it is light, can generate more power and has better durability compared to lead-acid batteries. It is also more environmental-friendly without risks of lead pollution.

Many countries have adopted the new technology in telecom companies' base stations in hospitals and banks.

Shanghai Peal Hydrogen Power Source Technology Co Ltd, which is involved in the draft of the standard, is testing most of its power source to ensure that it meets standards, Shi Tao, an official of the firm, said.

"A national standard is needed to direct industrial development in China and also regulate international cooperation," said Shi.

The Shanghai-based company, which has received a US$3 million investment from venture capital firms, plans to boost the capacity to 1,000 kilowatts per year by February 2011, up from the existing 500 kilowatts.

Some analysts said despite the national standard, the green technology also faces other challenges, such as high costs, before market demand can take off. The United States government offers a subsidy of US$3,000 for each kilowatt to US producers.