Shell and Shenergy join for hydrogen refuelling network in china

Hydrogen will reduce emissions of hard-to-abate sectors such as transport and heavy industry in China.

Shell (China) Limited and Shanghai Shenergy Innovation and Development Co., Ltd., an affiliate of Shenergy (Group) Co., Ltd., have signed an agreement to form a joint venture, namely Shanghai Shenergy and Shell New Energy Company Limited.

Through the new joint venture, the two parties will invest in building a network of hydrogen refuelling stations in Shanghai, Shell’s first hydrogen refuelling network in Asia.

The joint venture plans to build 6 to 10 hydrogen refuelling 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. Once built, the hydrogen refuelling 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 to produce and supply 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. As an integrated energy company, Shenery Group maps path in the hydrogen industry to support the strategy. Following its strategic plan, Shenergy Group aims to build a full value chain that covers production, storage, transportation, refuelling and utilization of hydrogen.

Huang Dinan, Chairman of Shenergy Group, said, “We hope to collaborate with Shell to give full play to our advantages, and co-build safe, reliable, and high-quality hydrogen infrastructures. Taking this as a starting point, we look forward to collaborating with more partners to support the development of hydrogen and contribute to the energy transition of Shanghai and 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.”

Zohaib Ali

Zohaib is the editor of H2 Bulletin. Please click on the email icon to contact me if you want to talk about a news.
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