Shell, Shenergy Form JV to Establish Hydrogen Distribution Hub in China

Shell (China) Ltd. and Shenergy (Group) Co. Ltd. have agreed to form a joint venture to build a network of hydrogen refueling stations in Shanghai, Shell’s first hydrogen refueling network in Asia.

The joint venture plans to build up to 10 hydrogen refueling stations in Shanghai and the Yangzte River Delta in the next five years and scale up to 30 stations across the Yangzte River Delta by 2030. These 30 stations could provide hydrogen supply to approximately 3,000 fuel cell trucks or buses every day.

“Hydrogen will play an important role in reducing emissions of hard-to-abate sectors such as transport and heavy industry in China,” Jason Wong, executive chairman of Shell Companies in China, said. “It is also expected that hydrogen will scale up significantly and make up at least 5% of China’s energy system by 2030. We see opportunities across the hydrogen value chain in China.”

Once built, the hydrogen refueling network will help accelerate the fuel cell vehicle adoption in road freight, public transportation, municipal services, and ports areas in Shanghai and Yangzte River Delta, and support the development of Shanghai National Fuel Cell Vehicle Demonstration City Cluster.

The stations will use low-emission industrial by-product hydrogen from the local chemical industry in the short term, while the two parties will also explore opportunities in producing and supplying green hydrogen to these stations in the long term.

“Under the guidance of its carbon-peak and carbon-neutrality strategy, China is moving towards a clean, low-carbon, safe and efficient energy system,” Huang Dinan, chairman of Shenergy Group, said. “As an integrated energy company, Shenery Group maps path in hydrogen industry to support the strategy. In accordance with its strategic plan, Shenergy Group aims to build a full value chain that covers production, storage, transportation, refueling and utilization of hydrogen. We hope to collaborate with Shell to give full play to our advantages, and co-build safe, reliable, and high-quality hydrogen infrastructures.”

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