Shell and Shanghai Shenergy Innovation and Development Co. have revealed today (July 29) they have signed an agreement to form a joint venture to develop a network of hydrogen refuelling stations in Shanghai.

The new joint venture, Shanghai Shenergy and Shell New Energy Company Limited plan to build six to 10 stations in Shanghai and Yangzte River Delta over the next five years, with intentions to scale up to 30 stations across the Yangzte River Delta by 2030.

It is hoped, once established the stations could supply hydrogen to approximately 3,000 fuel cell trucks and buses every day, helping to accelerate the adoption of the clean technology in road freight, public transport, municipal services and port areas in the region.

H2 View understands, the stations will use low-emission hydrogen produced as a by-product from the local chemical industry in the short term, with the partners saying they will also explore opportunities for the production and supply of green hydrogen in the long term.

Jason Wong, Executive Chairman of Shall 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.”

Additionally, the plans for hydrogen infrastructure hope to support the development of the Shanghai National Fuel Cell Vehicle Demonstration City Cluster.

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 utilisation 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.”

Hydrogen mobility in China: Policy and market environment

September 2020, during the 75th session of the United Nations General Assembly, the Chinese government proposed: “China aims to peak carbon dioxide emissions by 2030 and strives to achieve carbon neutral by 2060.” “Peak carbon dioxide emissions” and “carbon neutral” were written in the Chinese government’s report for the first time during 2021 National People’s Congress and Chinese People’s Political Consultative Conference. China’s main strategic policies identified green and low-carbon development and the transition path of China’s energy production and consumption, which accelerated more opportunities for hydrogen in transportation, industry and power generation area.

The main development direction of hydrogen in China is to replace the traditional fossil fuels in transportation industry with the clean energy. 

Want to keep reading? Click here.