Hexagon Purus and Chinese energy equipment manufacturer CIMC Enric have joined forces to accelerate zero-emission hydrogen transportation in China and Southeast Asia.

Two joint venture agreements have been signed today (2nd March) that encompass cylinder and systems production for fuel cell electric vehicles (FCEVs) and hydrogen distribution.

Under these agreements, Hexagon and CIMC Enric will jointly establish facilities for manufacturing cylinders and systems to serve the fast-growing demand of the Chinese and Southeast Asian market for safe, lightweight and cost-efficient compressed hydrogen storage solutions.

The Chinese market for FCEVs is expected to grow to become the largest global market over the next decade and beyond.

The cooperation will be organised around two joint ventures, a Cylinder JV and a Systems JV, both registered in Hong Kong.

The Cylinder JV will be majority-owned by Hexagon Purus (Hexagon Purus will own 51% and CIMC Enric will own 49%) and the Systems JV will be majority-owned by CIMC Enric (CIMC Enric will own 51% and Hexagon Purus will own 49%).

The JVs will form operating subsidiaries in 2021 and a joint sales and marketing team.

Production of high-pressure Type 3 fuel storage is expected to start in 2021.

Hexagon Purus said production line capacity will be designed to accommodate approximately 100,000 cylinders per annum, in a first stage towards the middle of the decade.

Construction of the new facility is expected to commence as early as the second quarter 2021.

“China is on the rise to become the most significant global market for fuel cell electric vehicles,” said Morten Holum, CEO of Hexagon Purus.

“Its successful energy transition to hydrogen requires safe, advanced and cost-efficient high-pressure Type 4 fuel storage solutions that are proven in the global market.”

“By joining forces in China, CIMC Enric and Hexagon Purus together contribute state-of-the-art Type 4 know-how, as well as the market presence of a top, trusted Chinese brand.”

Leo Yang, Executive Director and General Manager of CIMC Enric, added, “China always thinks big – and China has decided that hydrogen will be the next big thing, within this decade.”

“The CIMC-Hexagon joint ventures are set up to offer what the Chinese market for hydrogen storage will demand – safe and proven products made by a team renowned for their integrity and world class designs and manufacturing processes.”

“Together, CIMC Enric and Hexagon Purus have the financial backbone to scale up to serve the expected demand for both Type 3 and Type 4 cylinders as well as high pressure hydrogen transportation in China and Southeast Asia.”

“Together, we will drive the energy transformation with a joint vision of a zero-emission transportation sector.”

Chinese market

China, the world’s largest auto market with more than 28 million vehicles sold annually, has set its sights on creating a world-leading market for fuel cell electric vehicles (FCEVs) within two decades.

According to Chinese policymakers’ planning, the market will grow from more than 7,000 FCEVs by end of 2020, to 1.3 million FECVs by 2035.

It is also expected that hydrogen will account for approximately 10% of primary energy consumption in China by 2050.

The initial focus of the Chinese hydrogen strategy is on fuel cell electric buses and commercial vehicles.

This will improve public awareness and showcase the safety of hydrogen.

The Association of Southeast Asian Nations (ASEAN) announced its collective ambition to achieve 23% renewable energy integration into its energy system by 2025, and even more by 2035.

The shift to zero emission vehicles is driven by the desire to improve air quality and reduce CO2 emissions, as well as to increase energy independence by utilizing large amounts of hydrogen already available in China.

In addition, hydrogen provides cost-efficient storage for surplus renewable energy from wind and solar.

This article is reproduced at www.h2-view.com