Orange Research Institute Hydrogen Energy Industry Weekly Insights and Overview

(June 15-June 21)

The hydrogen energy sector has long been anticipating

BYD's move, given its numerous registered patents for hydrogen fuel cells.

As the industrialization of hydrogen fuel cells looms,

This disruptor has begun to make its presence felt.

Will the hydrogen fuel cell industry

face even stiffer competition than the lithium battery market?

This Week's Highlight

BYD officially ventures into the hydrogen energy sector; Fudi Fuel Cells, integrated with GAC Lingcheng, makes it to MIIT's public announcement.

On June 16, the Ministry of Industry and Information Technology (MIIT) unveiled the public announcement for new products under the 408th batch of the 'Catalog of Road Motor Vehicle Production Enterprises and Products.' GAC Lingcheng showcased a total of 13 fuel cell products in the announcement. Among them, the fuel cell types installed in GAC's hydrogen fuel cell refrigerated truck and cargo truck chassis are proton exchange membrane fuel cells, manufactured by Taizhou Fudi Battery Co., Ltd., with the fuel cell engine model identified as Linghang YTM80A.

Taizhou Fudi Battery Co., Ltd. is a wholly-owned subsidiary of BYD's Fudi Battery Co., Ltd.

Orange Research Institute Insight: This marks the most significant 'catfish effect' event in the hydrogen energy industry this week. BYD, a staunch proponent of the pure electric route, has officially made its foray into the hydrogen energy landscape. Leveraging its accumulated strengths in supply chain management, cost control, and large-scale manufacturing within the lithium battery sector, BYD could emerge as a 'catfish' that reshapes the cost structure of hydrogen fuel cells.

BYD's foray into the hydrogen energy sector underscores, on one hand, the irreplaceability of hydrogen energy in commercial vehicles, particularly in heavy-duty and long-distance applications. On the other hand, its cost control expertise in the lithium battery sector is poised to be transferred to the fuel cell sector, accelerating the cost reduction process. Compared to lithium batteries, hydrogen fuel cells are 'heavier' in terms of infrastructure and technology. With the entry of other 'hidden giants,' the competition for hydrogen fuel cell vehicles may intensify beyond that of lithium battery vehicles.

Ongoing Developments

Industry Accelerates Hydrogen Comprehensive Application Pilots

Originally slated for mid-June release by the Ministry of Industry and Information Technology, the announcement has been slightly postponed due to finalizing key details. The industry is clearly eager, with some regions already initiating preliminary preparations. The following events fall under this category.

1. HTWO Guangzhou Forges Strategic Partnership with Dongfeng Liuzhou Motor, Aiming for 1,000+ Vehicle Promotion

On June 16, HTWO Guangzhou signed a memorandum of understanding for strategic cooperation on hydrogen vehicle projects with Dongfeng Liuzhou Motor. The cooperation scope has expanded from 18-ton sanitation and logistics vehicles to include 4.5-ton refrigerated trucks and 49-ton tractor-trailers. They aim to collaborate in promoting no fewer than 1,000 hydrogen vehicles during the second batch of demonstration city clusters and target the international market.

Orange Research Institute Insight: According to Orange Research Hydrogen Energy Database statistics, Dongfeng Motor leads in hydrogen vehicle sales nationwide by 2025, while Hyundai ranks third in the installation volume of hydrogen fuel cell systems nationwide. This represents a powerful alliance between the 'top-selling vehicle enterprise' and a 'leading system supplier.'

2. Tianhai Industry Supplies 165 Hydrogen Cylinders to Kairui Power

On June 17, Chongqing Kairui Power directly procured 165 hydrogen cylinders from Beijing Tianhai Industry Co., Ltd.

Orange Research Institute Insight: It was not disclosed whether these are Type III or Type IV cylinders. Type IV hydrogen cylinders represent a significant industry development worthy of attention.

Special Focus

First Batch of Green Methanol from Taonan Loaded and Shipped from Dalian, Paving the Way for Northeast's Green Fuel Export Channel

On June 17, the 'Yunxiang 68' vessel docked at Berth 14 of Dalian Port Liquid Storage Tank Terminal Co., Ltd., and commenced loading and shipping green methanol. This batch of green methanol, produced by the **Shanghai Electric Taonan Wind Power Coupled with Biomass Green Methanol Demonstration Project**, will serve as marine fuel upon arrival at Shanghai Port.

Dalian Port Liquid Storage Tank Terminal Co., Ltd. has obtained ISCC EU certification for green methanol storage. The operation adopted a 'truck gathering at the port, unloading into tanks, and pipeline loading onto ships' model.

Orange Research Institute Insight: This marks the most commercially significant milestone event in the green fuel sector this week. As a key representative of domestic green methanol commercial production, the Taonan project has achieved full-chain connectivity from production to export transportation.

Dalian Port and Yingkou Port are currently pivotal port nodes for the export transportation of green methanol and green ammonia in the three northeastern provinces and eastern Inner Mongolia, with downstream connections to the Shanghai, Yangtze River Delta, and coastal marine fuel markets. Dalian Port's acquisition of ISCC EU certification for green methanol storage means that green methanol exported through here meets EU standards, eliminating certification hurdles for subsequent large-scale exports.

This event validates the feasibility of the 'Northeast production—port certification—coastal consumption' green fuel logistics channel and holds significant demonstrative importance for green fuel projects in the three northeastern provinces and eastern Mongolia.

Company Updates

Guohua Investment's 'Green Port Hydrogen City' Green Ammonia Project Phase I Completed and Commissioned

On June 15, Guohua Investment's (Hydrogen Energy Company) 'Green Port Hydrogen City' green ammonia project Phase I was completed and commissioned, fully transitioning into the joint debugging and trial operation phase. Located in Cangzhou, Hebei, the project's Phase I constructs a 50,000 ton/year synthetic ammonia plant, utilizing new energy green power resources to produce green ammonia through alkaline electrolysis water for hydrogen production, cryogenic nitrogen production, and multi-steady-state flexible synthesis processes. Phase I of the green ammonia project is equipped with 13 alkaline electrolyzers with a capacity of 1000Nm³/h each, with CRRC Zhuzhou Institute winning the bid.

Orange Research Institute Insight: This represents the most industrially significant progress this week.

Green Liquid Fuels

1. Goldwind Science & Technology Initiates Environmental Impact Assessment for 600,000-Ton Green Methanol Project in Changyi, Shandong

On June 11, Goldwind Green Methanol Chemical (Changyi) Co., Ltd. initiated the first information public announcement for its 600,000-ton green methanol project in Changyi, Shandong. Located in the Changyi Longchi Chemical Industry Park, the project will have a total green methanol production capacity of 600,000 tons/year upon completion. Using wheat and corn straw as raw materials, it will employ technologies such as gasification, transformation and heat recovery, desulfurization and decarbonization, methanol synthesis, and methanol rectification, coupled with green hydrogen produced through electrolysis water, to manufacture green methanol.

Orange Research Institute Insight: Goldwind Science & Technology's foray from a wind turbine manufacturer into the green fuel sector exemplifies the 'wind-hydrogen-methanol' integration model. The Changyi project in Shandong signifies Goldwind Green Methanol's expansion into the eastern coastal market, with future potential to connect to the Yangtze River Delta, South China markets, or face Northeast Asia and international routes.

2. Carbon Universe's Ningdong Thousand-Ton-Scale DAC e-SAF Project Commences Construction and Secures Series A Financing

On June 16, Shanghai Carbon Universe Technology Co., Ltd.'s thousand-ton-scale Direct Air Capture (DAC) project for producing sustainable aviation fuel (e-SAF) commenced construction in the Ningdong Energy and Chemical Base in Ningxia. The project has a total investment of 100 million yuan and an annual production capacity of 833.5 tons of SAF.

On June 11, Carbon Universe announced the completion of its Series A financing, jointly led by Yellow River Delta Investment, GFRC Ventures, and Boyuan Capital, with new shareholders including CATL and Sungrow Power Supply introduced.

Orange Research Institute Insight: Carbon Universe's investment from two new energy giants, CATL and Sungrow Power Supply, underscores recognition from leading companies of the long-term value of the DAC route. With the endorsement of a former colleague of Elon Musk, Carbon Universe comes with a certain prestige.

DAC e-SAF represents a 'long-term route' that directly captures CO2 from the air to synthesize fuel, unrestricted by waste oil and fat raw materials, but faces high energy consumption and cost pressures.

3. Shanghai's First Integrated Methanol Refueling Station Begins Operation

On June 15, Jiading Xingle Jiachun Station, Shanghai's first integrated methanol refueling station jointly built by Geely Remote and China National Offshore Oil Corporation (CNOOC), officially commenced operation. The station, upgraded from the existing Xingle Gas Station, integrates methanol, gasoline, diesel, charging, and battery swapping services.

Orange Research Institute Insight: With the rise of green liquid fuels, news about methanol refueling stations has increased. We will continue to monitor developments.

4. Long-Term Offtake Agreement Signed for 250,000 Tons/Year of Green Methanol (India)

Recently, Agastya Green Fuels signed a long-term green methanol offtake agreement with SAR Maritime of Sri Lanka, supplying 250,000 tons of EU-standard green methanol annually. Agastya is constructing a 1 million ton/year export-oriented green methanol project in India.

Orange Research Institute Insight: Frequent signings of green methanol projects in India, with a clear export orientation, pose potential competitive pressure on China's green fuel exports.