Driving energy transformation Hexagon and CIMC ENRIC forming alliance to accelerate zero-emission hydrogen transportation in China and Southeast Asia
Hexagon Composites ASA today signed a term sheet for a strategic cooperation and joint venture agreement with CIMC ENRIC, a leading Chinese manufacturer of energy equipment (3899.HK), headquartered in Shenzhen, People`s Republic of China and listed on the Hong Kong stock exchange. CIMC ENRIC is a subsidiary of China International Marine Containers (Group) Co., Ltd. (CIMC), a global leading supplier of transportation solutions headquartered in Shenzhen and listed on the Shenzhen and Hong Kong Stock Exchanges (000038 SZ and 2039 HK). The Parties will now proceed towards a final agreement.
This alliance will serve the fast-growing demand of the Chinese market for safe, lightweight and cost-efficient compressed Hydrogen storage solutions. The strategic cooperation will support the transition to zero emission transportation also in Southeast Asia. The Parties intend to jointly establish facilities for manufacturing of cylinders and assembly of systems to serve the Chinese and Southeast Asian markets.
About the market
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 1 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.
“China is on its way to becoming the largest market globally for hydrogen mobility and distribution,” says 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.”