Denmark’s HydrogenPro As and China’s Tianjin HQY Hydrogen Machinery Co., Ltd. (THM) have agreed to establish a joint venture, which will allow HydrogenPro to use Tianjin’s electrolyser technology globally.
Initially, the joint venture will build a 300 MW annual electrolyser production capacity in Tianjin, China, with substantial room for further expansion. HydrogenPro will own 75% in the joint venture, while THM will own the remaining 25%. HydrogenPro’s total investment cost is around NOK 48 million, of which ~NOK 8 million has been pre-paid.
The production facility will be located in Tianjin and will be equipped with new machines, which have already been purchased. The facility is expected to be ready for pilot production by the end of 2021. THM will transfer employees, fixed assets and intellectual property to the joint venture.
THM has a long-standing history of producing electrolyser components, parts, and systems as a supplier to the electrolyser industry in China and has expanded into assembly and sales of complete electrolysers over the past years.
HydrogenPro will leverage its new, improved and cost-leading electrolyser technology for large industrial hydrogen installations, reducing power consumption by 14%, thus giving a significant cost advantage compared to other technologies.
The next steps will be to establish footprints outside of China, based on technology and experience from the joint venture, to maintain cost leadership and ensure high local activity.
Elling Nygaard, CEO of HydrogenPro, said, “This transaction gives HydrogenPro full control over IP and core electrolyser technology that is key to our global fabrication plan.”
Wang Zhou, CEO of THM, added, “We look forward to working with HydrogenPro to reach a global market and further develop the most efficient and competitive electrolyser technology.”