Hexagon Purus AS signed two joint venture agreements with CIMC Enric Holdings Limited, a global supplier of cryogenic and compressed gas storage and transportation solutions and manufacturer of clean energy equipment, headquartered in Shenzhen, People’s Republic of China. These contracts encompass cylinder and systems production for fuel cell vehicles and hydrogen distribution in China and Southeast Asia.
Initially, the CIMC-Hexagon joint ventures will expand CIMC Enric’s existing production and systems capacity for Type 3 cylinders and in parallel install Type 4 cylinder production and systems capacity for the Chinese market. They expect to start production of high-pressure Type 3 fuel storage in 2021. 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 vehicles. 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. Both companies have proud heritages of providing world class products and solutions to their customers,” said Morten Holum, CEO of Hexagon Purus.
Leo Yang, Executive Director and General Manager of CIMC Enric commented, “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.”
China has set its sights on creating a world-leading market for fuel cell vehicles within two decades. According to Chinese policymakers’ planning, the market will grow from more than 7,000 vehicles by end of 2020, to 1.3 million by 2035. It is also expected that hydrogen will account for approximately 10% of primary energy consumption in China by 2050.
The cooperation will be organized 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%). They will form operating subsidiaries in 2021 and a sales and marketing team.
Source: Hexagon Composites