Petrochemical Machinery successfully won the bid for the ground infrastructure project of the deep hydrogen storage research and pilot production base in Daye, Hubei

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Recently, CNPC Machinery successfully won the bid for the surface supporting project at the Hubei Daye Deep-Earth Hydrogen Storage Research and Pilot Base. This facility is an important part of the integrated hydrogen energy project in Daye, Hubei, which focuses on the production, storage, distribution, and utilization of green electricity and green hydrogen. It was invested in and built by MCC Wukan, and it represents China’s first research and pilot platform dedicated to hydrogen storage in underground caves. Its purpose is to overcome the challenges associated with large-scale hydrogen storage and to verify the feasibility of storing hydrogen on a large scale in underground cavities. As a manufacturing base for hydrogen energy equipment in China’s petrochemical industry, petrochemical machinery offers a range of devices for use in hydrogen production, hydrogen refueling, hydrogen storage, and hydrogen transportation. The high-efficiency diaphragm hydrogen compressors developed here meet the technical requirements of the new energy storage market, which demands high energy density, long storage duration, and no environmental pollution. Senior executives at petrochemical machinery companies stated that the company possesses the capability to design and manufacture complete sets of equipment for hydrogen production using alkaline water and PEM technology, and can provide comprehensive solutions for integrated hydrogen production and processing facilities using methanol as a feedstock. This business will become a new source of revenue for the company. On the evening of August 20, CNPC Petroleum & Machinery released a announcement stating that in the first half of this year, the company achieved operating revenue of 3.476 billion yuan, a year-on-year decrease of 10.55%. Its net profit attributable to shareholders came to 28.0286 million yuan, down 57.33% from the same period last year. The company states that due to reduced investment in oil and gas fields, cost cuts, as well as the longer delivery and settlement cycles for its products, its revenue and the gross profit margin on its main products have declined. Additionally, its new business areas are still in the development stage, requiring continuous investment in construction, research and development, and market expansion; as a result, scale economies cannot be achieved in the short term, leading to a decline in the company’s financial performance. Although revenue declined year-on-year, significant breakthroughs were still achieved in certain niche segments. During the reporting period, the company secured orders for drilling and repair equipment from Sinopec, as well as bulk orders for such equipment for the Daqing and Qinghai oil fields of CNPC, thereby reinforcing its leading position in the drilling and repair equipment market. High-end products such as electric fracturing skids and cementing units hold a dominant position in the market.