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Air Liquide, Shenergy and Shanghai Chemical Industry Park partner to accelerate the development of hydrogen energy in Shanghai

  • China
  • Hydrogen

Air Liquide China, Shenergy and SCIP Investment Co. jointly signed an investment agreement with Shanghai Chemical Industry Park (SCIP) on March 1, 2022, in Shanghai, China to establish a joint venture in the industrial park. This three-party joint venture aims to build the largest-scale hydrogen filling center in Shanghai and to accelerate the deployment of hydrogen energy in the city and the Yangtze River Delta.
Subject to receiving antitrust approval, the new company will build a hydrogen filling center in the Shanghai Chemical Industry Park, the leading chemical park in China. For an investment of over RMB 180 million, Phase I construction is expected to start in August 2022, aiming to build a hydrogen filling center with a capacity of 24 tonnes per day. The partners are already considering increasing capacities with liquefaction plans in a  Phase II, which would make the filling center the largest in terms of filling capacity in Shanghai upon completion.
Air Liquide (China) Holding Co., Shanghai Shenergy Innovation & Development Co., Ltd., and Shanghai Chemical Industry Park Investment Co., Ltd. will leverage their respective expertises and assets to build this hydrogen filling center. Designed to utilize the raw hydrogen from the production process of upstream manufacturers in SCIP in Phase I, the plant will supply high pressure low-carbon hydrogen for mobility sector customers in Shanghai and in the Yangtze River Delta.  
Hydrogen energy is a strategic pillar in China’s energy transition and industrial restructuring, playing a significant role in achieving the objectives of carbon neutrality. Promising to peak carbon emissions in 2025, five years earlier than the Chinese national target, Shanghai is committed to developing the hydrogen energy industry through a variety of measures. According to the “Implementation Plan for Accelerating the Development of the New Energy Vehicle Industry in Shanghai (2021-2025)”, the total number of fuel cell vehicles will exceed 10,000, and over 70 hydrogen refueling stations will be built and put into use by 2025. 
Nicolas Poirot, President & CEO of Air Liquide China, said: "Air Liquide is convinced that hydrogen is essential to carbon emission reduction, and has been using its expertise in both technology and operations in building and operating hydrogen infrastructures around the world. As a leading chemical park in China, accommodating almost all major international chemical companies, SCIP pioneers in developing a low-carbon development roadmap for the Chinese chemical industry. We are glad to establish this partnership with SCIP and Shenergy, which will allow us to utilize the abundant industrial byproduct resources to deliver low-carbon hydrogen. This will enable us to make more contributions to cleaner mobility and create a more sustainable future together.
Song Xuefeng, Vice President of Shenergy Group Co., Ltd, said: "It is now a global consensus to promote low-carbon energy transition and utilize hydrogen energy. In this context, Shenergy Group endeavors to address the industrial pain points related to hydrogen storage, transportation, filling and utilization. Through making diverse investments in the hydrogen energy and fuel cell industries and exploring end-user application scenarios, we have developed a hydrogen energy business with our own characteristics. The partnership with Air Liquide and SCIP is an important step for us, which aims to build the largest hydrogen supply basin in East China and assist Shanghai in pioneering the deployment of fuel cell vehicles in China."
Ma Jing, Director of the SCIP Administration Committee, said: "Focusing on the national objectives of peaking carbon emissions and achieving carbon neutrality and the green economy development strategy, SCIP will accelerate the creation of industrial clusters in the hydrogen energy segments through the construction of Shanghai's hydrogen energy supply system, new material research, development and manufacturing, fuel cell testing, and multi-scenario demonstration applications. We strive to build a ‘Hydrogen Energy Economic Service Headquarters for Yangtze River Delta’ and a ‘Pilot Area for High-quality Development of Shanghai's Low-carbon Hydrogen Energy Industry’. It is of great significance that SCIP, Shenergy and Air Liquide join forces again to build the Shanghai Hydrogen Energy Supply Basin, which will drive forward Shanghai's low-carbon hydrogen energy industry, enhance the city's energy level and core competence, and yield fruitful results."