Hexagon Composites and Chinese energy equipment manufacturer Cimc Enric are joining forces to accelerate zero emission hydrogen transportation in China and Southeast Asia.
The two companies will jointly establish facilities for manufacturing cylinders to serve the fast-growing demand of the Chinese and Southeast Asian market for safe, lightweight and cost-efficient compressed hydrogen storage solutions.
“China is on its way to becoming the largest market globally for hydrogen mobility and distribution,” said Jon Erik Engeset, CEO of Hexagon.
“We wanted to team up with a strong Chinese industrial partner to secure the leading role in this development.”
“Together we can become the largest provider of hydrogen storage and distribution solutions in China and Southeast Asia.”
Xiaohu Yang, General Manager and Executive Director of Cimc Enric, added, “Cimc Enric has a long history of remarkable performance and breakthroughs in alternative fuel storage and transportation. And now hydrogen will take the lead as the ultimate solution for the future needs of the mobility sector in China and on global scale.”
“As a clean energy enterprise, our strategic alliance with Hexagon will accelerate the adoption of zero emission transportation by fast tracking the introduction of all-composite Type 4 Hydrogen storage and transportation in China.”
Production in the new venture is expected to start as early as 2021.
China, the world’s largest auto market with over 28 million vehicles sold annually, has set its sights on creating a world-leading market for fuel cell electric vehicles (FCEVs) within a decade.
Chinese policymakers expect the market to grow from 5,000 vehicles by the end of next year, to 50,000 by 2025, and one million by 2030.
The initial focus is on fuel cell electric buses and commercial vehicles. This will improve public awareness and showcase the safety of hydrogen.
The Alliance of Southeast Asian Countries (ASEAN) announced its collective ambition to achieve 23% renewable energy integration into its energy system by 2025, and even more by 2030.
The shift to zero emissions 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.
Additionally, hydrogen provides a cost-efficient storage for surplus renewable energy from wind and solar.