PR88531

SHANGHAI, March 16, 2021 /PRNewswire=KYODO JBN/ --

Shanghai Electric (the "Company") (SEHK: 02727, SSE: 601727), the world's

leading manufacturer and supplier of electric power generation equipment,

industrial equipment, and integration services, joined hands with the Dalian

Institute of Chemical Physics of the Chinese Academy of Sciences (the "Dalian

Institute") to inaugurate the Proton Exchange Membrane (PEM) Hydrogen

Production Technology R&D Center on March 4. The two parties signed a project

cooperation agreement on Megawatt Modular and High-Efficiency PEM Hydrogen

Production Equipment and System Development, marking an important step forward

for Shanghai Electric in the field of hydrogen energy.

As one of China's largest energy equipment manufacturers, Shanghai Electric is

at the forefront in the development of green hydrogen as part of China's clean

energy drive. During this year's Two Sessions, the 14th Five-Year Plan was

actively discussed, in which green hydrogen features prominently. With strong

government support and widespread industry interest, 2021 is emerging as Year

Zero for the hydrogen energy industry.

Currently, Shanghai Electric and the Dalian Institute have reached a

preliminary agreement on the industrial development path for new energy power

generation and electrolyzed water hydrogen production. As part of the

cooperation, both will also continue to enhance the transformational potential

of PEM electrolyzed water hydrogen production, accelerate the development of

competitive PEM electrolyzed hydrogen products, and promote industrial

applications and scenarios. Moreover, they will continue to carry out in-depth

cooperation across the entire hydrogen energy industry chain to accelerate

overall industrialization.

Hydrogen energy boasts the biggest potential of all the current forms of clean

energy, and the key to its development lies in its production. At present,

hydrogen production primarily stems from fossil fuels, industrial by-product

hydrogen recovery and purification, and production by water electrolysis. These

processes result in significant carbon emissions. The rapid development of PEM

water electrolysis equipment worldwide in recent years has enabled current

technologies to achieve zero carbon emissions, effectively realizing green,

clean hydrogen. This breakthrough will be instrumental in helping China achieve

its carbon peak and carbon-neutrality goals.

The market potential for hydrogen production from electrolyzed water is

therefore massive. Forecasts indicate that, by 2050, hydrogen energy will

account for approximately 10% of China's energy market, with demand reaching 60

million tons and annual output value exceeding RMB 10 trillion. The Hydrogen:

Tracking Energy Integration report released by the International Energy Agency

in June 2020 notes that the number of global electrolysis hydrogen production

projects and installed capacity have both increased significantly, with output

skyrocketing from 1 MW in 2010 to more than 25 MW in 2019. Much of the

excitement comes from hydrogen's potential to join the ranks of natural gas as

an energy resource that plays a pivotal role in international trade, with the

possibility of even replacing it one day. In PwC's 2020 The Dawn of Green

Hydrogen report, the advisory predicts that experimental hydrogen will reach

530 million tons by mid-century.

Shanghai Electric set its focus on hydrogen energy years ago, given its major

potential for growth as one of the new energy technologies of the future and,

in particular, its ability to power new energy vehicles. In 2016, the Central

Research Institute of Shanghai Electric began to invest in R&D for key fuel

cell systems and stack technologies. In 2020, Shanghai Electric's

independently-developed fuel cell engine, which boasts a power capacity of 66

kW and can start in cold temperature environments of as low as -30°C, passed

the inspection test of the National Motor Vehicle Product Quality Inspection

Center. It adopts Shanghai Electric's proprietary hydrogen circulation system,

which delivers strong power and impressive endurance, with the potential to

replace gasoline and diesel engines in commercial vehicles.

As the technology matures, hydrogen has entered a stage of accelerated

industrialization. Shanghai Electric is leveraging the opportunities to propel

its development and the green energy transformation. As part of these efforts,

Shanghai Electric established a Hydrogen Energy Division in 2020 to further

accelerate the development and bring about a new era of green, clean energy.

As one of the largest energy equipment manufacturing companies in China,

Shanghai Electric, with its capability for project development, marketing,

investment and financing and engineering, procurement and construction (EPC),

continues to accelerate the development and innovation of new energy. The

Company has a synergistic foundation and resource advantages across the

industrial chain from upstream power generation to downstream chemical

metallurgy. The combined elements will accelerate the pace of Shanghai

Electric's entry into the field of hydrogen production.

Currently, Shanghai Electric has deployed a number of leading green hydrogen

integrated energy industry demonstration projects in Ningdong Base, one of

China's four modern coal chemical industry demonstration zones. Among them, the

Ningdong Energy Base "source-grid-load-storage-hydrogen" project integrates

renewable energy generation, energy storage, hydrogen production from

electrolysis, and the entire industrial chain of green chemical/metallurgy.

In December 2020, Shanghai Electric inked a cooperation agreement to develop a

"source-grid-load-storage-hydrogen" energy project in Otog Front Banner, Inner

Mongolia. Equipped with large-scale electrochemical energy storage and hydrogen

production equipment, the project will build a massive new energy power

generation base and help the region to achieve efficient cold, heat,

electricity, steam and hydrogen energy supply.

SOURCE: Shanghai Electric