Hexagon Purus AS, a company that specializes in zero-emission, e-mobility, battery systems and electric drivetrain technologies, has signed two joint venture (JV) agreements with CIMC Enric Holdings Ltd., a China-based supplier of cryogenic and compressed gas storage and transportation solutions and manufacturer of clean energy equipment.
“China is on the rise to become the most significant global market for fuel cell electric vehicles (FCEVs),” says Morten Holum, CEO of Hexagon Purus. “Its successful energy transition to hydrogen requires safe, advanced and cost-efficient high-pressure Type 4 fuel storage solutions that are proven in the global market. By joining forces in China, CIMC Enric and Hexagon Purus together contribute state-of-the-art Type 4 know-how, as well as the market presence of a trusted Chinese brand.”
China, the world’s largest auto market with over 28 million vehicles sold annually, has set its sights on creating a market for FCEVs within two decades. According to Chinese policymakers’ planning, the market will grow from more than 7,000 FCEVs by the end of 2020, to 1.3 million FECVs by 2035. It is also expected that hydrogen will account for approximately 10% of primary energy consumption in China by 2050.
The initial focus of the Chinese hydrogen strategy is on fuel cell electric buses and commercial vehicles. This will improve public awareness and showcase the safety of hydrogen. The Association of Southeast Asian Nations (ASEAN) announced its collective ambition to achieve 23% renewable energy integration into its energy system by 2025, and even more by 2035.
The cooperation will be organized around two joint ventures, a Cylinder JV and a Systems JV, both registered in Hong Kong. The Cylinder JV will be majority-owned by Hexagon Purus (Hexagon Purus will own 51% and CIMC Enric will own 49%) and the Systems JV will be majority-owned by CIMC Enric (CIMC Enric will own 51% and Hexagon Purus will own 49%). The JVs will form operating subsidiaries this year and a joint sales and marketing team.