Shell and Shenergy form joint venture to develop hydrogen refuelling network in China
Jul 29, 2022
Shanghai − 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 to build 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 in producing and supplying green hydrogen to these stations in the long term.
Huang Dinan, Chairman of Shenergy Group said: “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 hydrogen industry to support the strategy. In accordance with its strategic plan, Shenergy Group aims to build a full value chain that covers production, storage, transportation, refuelling and utilization of hydrogen. 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: “Hydrogen will play an important role in reducing emissions of hard-to-abate sectors such as transport and heavy industry in China. 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. Through the partnership with Shenergy, we are glad to support the development of hydrogen in China and contribute to China’s carbon targets.”
Notes to editors
- Shanghai National Fuel Cell Vehicle Demonstration City Cluster was officially approved by the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the National Development and Reform Commission and the National Energy Administration in China, in August 2021. Shanghai, as the lead in the integrated development of the Yangtze River Delta, teams up with six cities and regions, including Suzhou City and Nantong City in Jiangsu Province, Jiaxing City in Zhejiang Province, Zibo City in Shandong Province, Ningdong Energy and Chemical Industry Base in Ningxia and Erdos City in Inner Mongolia Autonomous Region, to jointly establish the "1+6" Shanghai City Cluster. The cluster will focus on technology breakthrough of key components, establishment of hydrogen refuelling networks, increase of incentives and subsidies and development of enabling policies, etc. The Shanghai Medium- and Long-term Hydrogen Development Plan (2022-2035) published in May, 2022 indicates that Shanghai targets to have around 70 hydrogen refuelling stations and more than 10,000 fuel cell vehicles by 2025. For more details, please refer to http://sheitc.sh.gov.cn/gydt/20210827/ef04025fd877466880f7bf00b8ecbd74.html; https://fgw.sh.gov.cn/cmsres/89/890a5d14a42a497993546b558f525cb0/331d8ca143e43fd6548afed86b594190.pdf)
- The China Hydrogen Alliance, a government-supported industry group, predicts that hydrogen will make up at least 5% of China’s energy system by 2030, which is also in line with the analysis in Shell’s Scenario Sketch ‘Achieving a carbon-neutral energy system in China by 2060’. For more details, please refer to https://www.shell.com.cn/en_cn/promos/energy-and-innovation/china-scenario-sketch/_jcr_content.stream/1642171116580/9c08ca486937fc6153a981cde04539f28f90f733/china-sketch-narrative.pdf
- On January 28, 2022, Shell started one of the world’s largest hydrogen electrolysers with 20 MW production capacity in Zhangjiakou, China. The project is part of a joint venture between Shell China and Zhangjiakou City Transport Construction Investment Holding Group Co. Ltd. Utilising onshore wind power, the electrolyser supplied approximately 100 tons of green hydrogen for more than 600 fuel cell buses in the Zhangjiakou Competition Zone during the Beijing 2022 Winter Olympic Games, accounting for more than 75% of supply during the event. After the Olympics, the hydrogen from this project is used for public and commercial transport in the Beijing-Tianjin-Hebei region, helping to decarbonise its mobility sector. For more details, please refer to: https://www.shell.com/media/news-and-media-releases/2022/shell-starts-up-hydrogen-electrolyser-in-china-with-20mw-product.html
Founded in 1987, Shenergy grew into Shenergy (Group) Co., Ltd. in 1996, with a registered capital of RMB 20 billion. It is a wholly state-owned enterprise conglomerate invested and supervised by the Shanghai Municipal State-own Assets Supervision and Administration Commission.
Since its establishment, Shenergy has resolutely implemented the instructions of the Central Committee of the Communist Party of China (CPC), the State Council, the CPC Shanghai Municipal Committee and the Shanghai Municipal People’s Government, consistently safeguarded Shanghai's energy security and maintained and increased the value of state-owned assets as our core mission. By adhering to the business philosophy of "Determined Development and Steady Operation" and taking a firm footing in energy as our prime business, we have steadily expanded our areas of investment, and gradually developed into an integrated energy enterprise group spanning the fields of electric power, oil, gas, finance, and strategic emerging businesses.
Currently, Shenergy Group has over 200 wholly-owned and holding enterprises and employs more than 18,000 workers. Enterprises directly under Shenergy Group include Shenergy Co., Ltd. (600642.SH), Shanghai Gas, Orient Securities (600958.SH & 03958.HK), Shanghai Electric Cable Research Institute, among others. The Company has ranked among China’s TOP500 companies for 20 consecutive years.
About Shell in China
All of Shell's core businesses have grown considerably in China. Shell works with PetroChina and CNOOC to develop onshore and offshore oil and gas resources in China and overseas. This includes the Changbei onshore gas project, developed in collaboration with PetroChina. Shell is also one of the leading suppliers of LNG in China.
Shell operates a retail network of near 1,900 gas stations in China through joint ventures and wholly owned enterprises, with more than 3,000 charging points for electric vehicles. Shell has five lubricant blending plants and one grease production plant in China. It also operates a world-class petrochemical plant in the Daya Bay area of Huizhou City, Guangdong Province, in a joint venture with CNOOC.
Shell Energy (China) Co., Ltd. is an important part of Shell's global trading network, providing Chinese clients with a competitive and diversified LNG portfolio, power trading and carbon asset management and trading solutions. Shell Ventures has a dedicated team in China to accelerate innovation in the energy and mobility sector by investing in disruptive technologies and business models outside the company.
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