Cummins and Sinopec ally to produce green hydrogen

Cummins Inc. and China Petrochemical Corporation, owned by the Sinopec Group, announced the formation of a 50:50 joint venture through Cummins Enze Hydrogen Technology Co., Ltd to develop green hydrogen. The joint venture will accelerate the affordability and availability of the fuel through increased technological innovation, research and development, as well as manufacturing capacity.

Cummins Enze, a subsidiary of the US-based company located in the city of Foshan, will initially invest $47 million to locate a manufacturing plant to produce proton exchange membrane (PEM) electrolyzers. The plant will initially have a manufacturing capacity of 500 megawatts of electrolyzers per year upon completion in 2023, which will be gradually increased over the next five years to reach one gigawatt of manufacturing capacity per year.

“China’s embrace of green hydrogen is a breakthrough for the planet, and Cummins and Sinopec joining together to realize the potential of green hydrogen is a huge leap forward for scaling our innovative PEM electrolyzer systems,” said Amy Davis, Vice President and President of New Power at Cummins.

Cummins Enze will also provide a variety of hydrogen generation system solutions to meet diversified application requirements. This will include offering electrolyzers for both small-scale hydrogen production, such as a hydrogen fueling system for on-site hydrogen generation, as well as for large-scale hydrogen generation installations capable of 100 megawatts and beyond.

“Green hydrogen is the ultimate technology of the hydrogen energy industry in the future,” said Zhou Yuxuan, General Manager of Enze Fund and Chairman of the joint venture. “Both gray and blue hydrogen technologies (gray hydrogen with carbon capture technology) are just a transition. We will use Sinopec’s current industry resources and lay out the green hydrogen industry chain to achieve greater progress,” he added.

Foshan, Guangdong Province of China, where the joint venture’s new plant will be located, is a national ecological base for the hydrogen energy industry. As one of the birthplaces of the hydrogen economy, it has a mature hydrogen energy industry chain. It is also one of China’s first listed areas to be supported by China’s central government to pilot and grow the hydrogen industry.

Source: https://www.petrolplaza.com/