French auto supplier Plastic Omnium and Shanghai-based Shenergy Group subsidiary Rein will establish a 50/50 joint venture based in Shanghai to manufacture and market high-pressure hydrogen storage systems for the commercial vehicle market in China.
Plastic Omnium will contribute its expertise in high-pressure hydrogen vessels and Rein will bring its experience in the manufacture of hydrogen transportation and storage systems specifically for the Chinese market to the collaboration.
Since 2015, Plastic Omnium has invested more than 300 million euros to ensure that it has the skills, product portfolio and production capacity in place to cover every link in the hydrogen mobility value. Type IV high-pressure hydrogen storage systems featuring a thermoplastic liner and thick carbon fiber structure offer the leading solution in today’s market. Plastic Omnium's expertise in filament winding has been recognized by European and international certifications since 2019.
According to Plastic Omnium, the joint venture will start with a pilot production line that will be built in Shanghai in 2025. This will be followed by the construction of a larger plant with an annual production capacity of up to 60,000 hydrogen tanks that will go into operation in 2026.
The joint venture, which will be headquartered in Shanghai, has yet to be named and will be owned equally by both partners.
The companies have also signed a memorandum of understanding under which the companies agree to a strategic cooperation involving the putting in place of hydrogen eco-systems with a view to contributing to the roadmap for carbon neutrality in China.The transaction is subject to regulatory approval, which is expected to be granted in H1 2023.
According to the Shenergy Group, the venture will be a “major player in the energy sector with an ambitious strategic roadmap for hydrogen in China.”
Laurent Favre, CEO of Plastic Omnium, expects his company’s partnership with Shenergy to give it a stronger position in the Chinese market for hydrogen-powered commercial vehicles.
“We are building the manufacturing capacity we need to seize every opportunity to become one of the major winners in the mobility transformation. It also gives us a solid basis from which to explore new opportunities for further cooperation in the local hydrogen ecosystem,” Favre said.
According to Ni Bin, president of Shenergy Group, his group is committed to establishing a hydrogen production value chain in China as soon as possible. The collaboration will “make an important contribution to the further development of hydrogen technology and manufacturing efficiency,” he said.
Plastic Omnium has been best known for manufacturing plastic exterior body parts and tanks but is increasingly diversifying. Last year, Plastic Omnium invested 20 million euros in French battery manufacturer Verkor and acquired Actia Power, which specialises in power electronics and electrification systems, among other things.
Plastic Omnium employs 37,000 people and has 150 plants and 43 research and development centres. The fuel cell joint venture EKPO Fuel Cell Technologies, operated by Plastic Omnium along with ElringKlinger, has also recently established a Chinese subsidiary. This involves the production of fuel cell stacks in the city of Suzhou.