Cummins launches 50-50 green hydrogen JV with Sinopec in China

Cummins Inc. and China Petrochemical Corporation, also known as Sinopec, announced the formation of a 50-50 joint venture — Cummins Enze (Guangdong) Hydrogen Technology Co., Ltd.  The joint venture will accelerate the affordability and availability of green hydrogen through increased technological innovation, research and development, and manufacturing capacity. 

Cummins Enze, located in Foshan, Guangdong Province in China, will initially invest USD47 million to locate a manufacturing plant to produce proton exchange membrane (PEM) electrolyzers. The plant will initially have a manufacturing capacity of 500 megawatts (MW) of electrolyzers per year upon completion in 2023, which will be gradually increased over the next five years to reach one gigawatt (GW) of manufacturing capacity per year.

Cummins Enze will also provide a variety of hydrogen generation system solutions to meet diversified application requirements. This will include offering electrolyzers for both small-scale hydrogen production, such as a hydrogen fueling system for on-site hydrogen generation, as well as for large-scale hydrogen generation installations capable of 100 MW and beyond.

The joint venture will accelerate the affordability and availability of green hydrogen through increased technological innovation, research and development, and manufacturing capacity.

“China’s embrace of green hydrogen is a breakthrough for the planet, and Cummins and Sinopec joining together to realize the potential of green hydrogen is a huge leap forward for scaling our innovative PEM electrolyzer systems,” said Amy Davis, vice president and president of New Power at Cummins. 

“Cummins was one of the first multinational companies to establish an entity in China in 1979, and we are thrilled to now use our deep roots and localized expertise to be at the forefront of the country’s energy transformation. This joint venture brings together Cummins’ and Sinopec’s innovative spirits and pursuit of a more sustainable tomorrow, enabling a carbon-free economy.”

As one of the largest hydrogen energy suppliers in China, Sinopec’s annual hydrogen production reaches 3.5 million tons, accounting for 14% of national hydrogen production. Last year, Sinopec set the vision of becoming the world’s leading clean energy chemical company and positioned the entire hydrogen industry chain as the core business for its new power strategy.

“Green hydrogen is the ultimate technology of the hydrogen energy industry in the future,” said Zhou Yuxuan, general manager of Enze Fund and chairman of the joint venture. “Both gray and blue hydrogen technologies (gray hydrogen with carbon capture technology) are just a transition. We will use Sinopec’s current industry resources and lay out the green hydrogen industry chain to achieve greater progress.”