Cummins Inc. and China Petrochemical Corporation (Sinopec Group) formed a 50:50 joint venture Cummins Enze (Guangdong) Hydrogen Technology Co., Ltd, in Foshan, Guangdong Province in China.
The joint venture will speed up the affordability and availability of green hydrogen through increased technological innovation, R&D and manufacturing capacity.
Cummins Enze will initially invest $47 million to locate a manufacturing plant to produce proton exchange membrane (PEM) electrolysers. The plant will initially have a production capacity of 500 MW/year of electrolysers by 2023, which will gradually reach 1 GW/year of manufacturing capacity over the next five years.
Cummins Enze will also provide a variety of hydrogen generation system solutions to meet diversified application requirements. This will include offering electrolysers for both small-scale hydrogen production, such as a hydrogen fuelling system for on-site hydrogen generation and large-scale hydrogen generation installations capable of 100 MW and beyond.
Foshan is a pioneer of the hydrogen economy and has a mature hydrogen energy industry chain. It is also one of China’s first listed areas supported by China’s central government to pilot and grow the hydrogen industry.
Sinopec’s annual hydrogen production reaches 3.5 million tonnes, accounting for 14% of national hydrogen production. Cummins has so far deployed more than 2,000 fuel cells and 600 electrolysers globally.
Amy Davis, VP at Cummins, said, “This joint venture brings together Cummins’ and Sinopec’s innovative spirits and pursuit of a more sustainable tomorrow, enabling a carbon-free economy.”
Zhou Yuxuan, GM of Enze Fund and Chairman of the joint venture, added, “Both gray and blue hydrogen technologies (grey hydrogen with carbon capture technology) are just a transition.”