Shell and Shenergy form a joint venture to build hydrogen refueling network in China

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 to build a network of hydrogen refueling stations in Shanghai.

The joint venture plans to build 6 to 10 hydrogen refueling stations in Shanghai and the Yangzte River Delta in the next five years and scale up to 30 stations by 2030. These 30 stations have a capacity of supplying hydrogen to approximately 3,000 fuel cell trucks or buses daily. This hydrogen refueling infrastructure will help accelerate the fuel cell vehicle adoption in road transportation in Shanghai area, and support the development of Shanghai National Fuel Cell Vehicle Demonstration City Cluster.

Yangzte River Delta is now a remarkable hydrogen innovation hub in China. It is the home to more than 100 hydrogen and fuel cell companies. Hydrogen infrastructure has become a bottleneck for local thriving hydrogen economy.

Currently, these stations will use low-emission industrial by-product hydrogen from the local chemical industry, while the two parties will also explore opportunities to produce and supply green hydrogen to these stations in the long term.

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 the hydrogen industry to support the strategy. Following its strategic plan, Shenergy Group aims to build a full value chain that covers production, storage, transportation, refueling and utilization of hydrogen.

Jason Wong, Executive Chairman of Shell Companies in China, said, “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.”