Siemens forms partnership with top Chinese utilities to develop offshore hydrogen businesses in China
On November 5, Siemens Energy signed an agreement with China Energy Investment Group (CHN Energy), Shenergy, and China Datang to jointly develop hydrogen businesses in Hainan, the southmost island province in China. The consortium will construct offshore wind to hydrogen production plants, green fuel production and refueling infrastructures, hybrid hydrogen with natural gas power generation project, as well as engage in carbon footprint certification services for low carbon fuel.
Photo: the signing ceremony, source: Chinadaily
All the other three partners are top Chinese energy and utility corporations. CHN Energy is the world’s largest company in coal mining, thermal power, wind power and coal-to-liquids industry. The company is also a major hydrogen producer in China with over 4 million tons production annually. By 2023, CHN Energy had an asset of 2.1 trillion yuan, a revenue of 862 billion yuan, a net profit of 61.8 billion yuan, and a coal output of 620 million tons. With an installed power capacity of 324 GW, the company generated 1.2163 trillion kWh of electricity and supplied heat of 532 million GJ. It had an installed thermal capacity of 209 GW, an installed hydropower capacity of 18.67 GW, an installed wind power capacity of 60.78 GW, and an installed renewable energy capacity of 96.23 GW.
Shenergy Group is a prominent energy conglomerate based in Shanghai, China, with diversified operations across multiple sectors. Shenergy is a major player in electricity generation, particularly in Eastern China. Its portfolio includes coal-fired, gas-fired, and renewable energy power plants, supplying electricity to meet urban and industrial demands, especially in Shanghai and the Yangtze River Delta region.
Shenergy has significant investments in natural gas, covering the entire value chain from importation and transportation to storage and distribution. This includes owning and operating LNG (liquefied natural gas) terminals and extensive gas pipeline networks. The company is one of the primary natural gas suppliers in Shanghai.
Shenergy is increasingly investing in renewable energy sources, including wind, solar, and hydroelectric power, and hydrogen. The company is actively developing infrastructure for hydrogen production, storage, and fueling stations. So far, most of Shenergy’s hydrogen assets are located in Shanghai.
Founded in 2002, China Datang Corporation Limited (China Datang), is one of the five largest power suppliers in China. As of the end of 2023, the total assets exceeded 890 billion RMB, total installed capacity amounted to 180 GW, with clean energy units accounting for 46.24%.
All of these three Chinese energy giants have significant hydrogen businesses and are increasing their stakes. CHN Energy and China Datang mainly focus on green hydrogen production while Shenergy has good experiences on hydrogen mobility applications. It’s very rare that they form a partnership together with a foreign company.
So, why Siemens Energy is chosen?