Two Giant Companies in China Have Launched a Joint Venture to Produce Affordable Green H2

In a move that will put China on a global map as the world transitions to the use of green H2, two companies recently launched a joint venture that seeks to explore hydrogen. More precisely, China Petrochemical Corporation, a renowned company under Sinopec Group, and Cummins Inc. are working on a project that might change things soon. The two companies are looking to help in accelerating the production and availability of affordable green H2.

The areas of focus during the period of their project will be technological innovation, boosting manufacturing capacity, and research & development activities related to green H2. Experts and green H2 enthusiasts have hailed the move as a game-changer for China and the rest of the world. Some see it as a breakthrough for the world in the efforts to realize net-zero emissions. While the project is in its early stages, there is no doubt that new technologies or improvements of those already existing will happen soon.

In the agreement, Cummins will make an initial investment of $47 million. The funding will facilitate the siting of a manufacturing plant. The plant will be producing proton exchange membrane (PEM) electrolyzers. It is projected that per year, the plant will be making 500 megawatts of electrolyzers beginning 2023. The capacity will increase gradually over the coming years with the target already set to one gigawatt of manufacturing capacity yearly. If achieved, such a great capacity will certainly change hydrogen production systems in China and even globally.

“We will use the resources…to achieve greater progress,” said the chairperson of the joint venture between the two companies as he expressed his views regarding the move. He further added that the green H2 technology that’s being explored will help come up with a wide array of energy solutions that can be used in various applications, including meeting the ever-increasing demand for clean energy in industries. More specifically, the newly launched plant will offer electrolyzers for small-scale green H2 production as well as large-scale installations that can produce hydrogen for large-scale industrial use.

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At Foshan, Guangdong Province of China where the plant is located, plans are underway to ensure that the site meets all the requirements for hydrogen production. The place has already been set aside as the national ecological main area for green H2 energy. It enjoys the support of the government and in no time, it will undoubtedly be driving the country’s hydrogen economy henceforth. It is for this reason that there is a lot of hope regarding the outcomes of the proposed joint venture between Cummins Inc. and CPC. Notably, this is one of China’s flagship projects regarding the production and use of clean hydrogen both for small and large-scale energy needs.

Overall, it is expected that the facility and the activities that will be carried out will aid in the transition to the use of eco-friendly green H2. Most importantly, it will help in realizing the ultimate goal of zero carbon emissions from industries.

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