Rising Sun Group releases hydrogen energy development plan

Thread Content

China Ruiyang Group (1907.HK) recently formulated and released the \"Ruiyang Group Hydrogen Energy Development Plan\" (hereinafter referred to as the \"Plan\"). It is understood that, leveraging its own strengths, the “Plan” seizes the opportunity presented by the rapid growth of the hydrogen energy sector under the backdrop of carbon peak and carbon neutrality. Comprising four sections—“The role of hydrogen energy under the dual-carbon context, the hydrogen energy industry chain and the development paths of typical enterprises, Xuyang’s advantages in developing hydrogen energy, and Xuyang’s development plan for hydrogen energy”—the Plan provides a systematic roadmap for the overall development of Xuyang Group’s hydrogen energy industry. The Plan states that the goal of \"carbon neutrality\" drives a energy revolution; the world has already embarked on an energy transition. Different countries are employing various strategies, but all consider hydrogen energy to be an important pathway toward achieving this goal. Hydrogen energy is an inevitable choice for carbon emission reduction, **and various provinces and cities have successively introduced a series of policies to encourage and support the development of hydrogen energy. As the world’s largest independent producer and supplier of coke, Ruyang Group enjoys a combination of advantages in developing the hydrogen energy industry, including policy advantages (such as the Three-Year Action Plan for the Clustered Development of the Hydrogen Energy Industry Chain in Hebei Province (2020–2022), which designates Ruyang Group as a \"model industrial enterprise for hydrogen energy applications\"), resource advantages, cost advantages, regional advantages, low-carbon advantages, quality advantages, and technological advantages. According to relevant officials from Xuyang Group, in terms of resource advantages, the group currently operates with a coking capacity of 12.1 million tons per year. This figure is expected to reach 30 million tons per year by 2025 and 60 million tons per year by 2030 ； In contrast, Xuyang Group currently has 2.66 billion cubic meters of hydrogen resources per year. It is expected that this figure will exceed 6.5 billion cubic meters per year by 2025, and surpass 13 billion cubic meters per year by 2030. In terms of cost advantages, Xuyang Group benefits from industrial chain advantages in hydrogen production from coke oven gas. The cost of hydrogen production is merely 0.7–1.0 yuan per cubic meter, which is lower than the cost of hydrogen produced from coal and significantly cheaper than that generated through other methods. In terms of regional advantages, the layout of Xuyang Group’s coking and hydrogen energy support base aligns closely with the **hydrogen energy cluster** ； Each coking park of Xuyang Group is planning to construct regional hydrogen energy support bases and integrated hydrogen refueling station clusters ； The hydrogen supply from the first phase of Dingzhou Hydrogen Energy Support Base, which was put into operation by Xuyang Group last year, now covers the Beijing-Tianjin-Hebei region. In terms of low-carbon advantages, the production of high-purity hydrogen from coke oven gas results in 4.54 kilograms of carbon dioxide emissions per kilogram of hydrogen produced; according to the standards set by the China Hydrogen Energy Alliance, the hydrogen thus produced is considered clean hydrogen. Leveraging its comprehensive advantages, the Plan stipulates that the strategic positioning for Xuyang Group’s hydrogen energy industry development is to “implement the Group’s energy strategy, contribute to carbon neutrality, and foster new business growth drivers”. Based on this strategic positioning, the Plan outlines Xuyang Group’s “1-1-2-4” development approach for hydrogen energy: one industrial chain (production, storage, transportation, refueling, and utilization); one network (a nationwide smart hydrogen supply network); two supporting pillars (technology and services); and four development phases. The first line refers to the vertical integration of the entire industry chain for hydrogen production, storage, transportation, refueling (at hydrogen refueling stations), and utilization (in fuel cell vehicles). The “One Network” refers to the horizontal establishment of an intelligent hydrogen energy supply network that covers the entire country and even East Asia. The two key aspects involve mastering the core technologies related to hydrogen energy + providing high-quality hydrogen supply services. The four-phase approach involves phased construction and gradual upgrades, along with a comprehensive layout across the entire industry chain, with the goal of becoming a supplier of clean and low-carbon energy, an integrator of energy ecosystems, a developer of advanced energy technologies, and an outstanding service provider for energy transition. According to a relevant official from Xuyang Group, in the first phase, the goal is to establish itself as a provider of clean and low-carbon energy. By leveraging its geographical advantages and taking advantage of the Beijing Winter Olympics and Paralympics, the company will focus on regions where hydrogen energy is developing rapidly, such as the Beijing-Tianjin-Hebei area, Shandong, the Yangtze River Delta, and Inner Mongolia, to carry out demonstrations of hydrogen production, storage, transportation, and refueling in multiple regions. This will enable Xuyang Group to become a strategic supplier of hydrogen energy for the Beijing-Tianjin-Hebei region and related new areas, as well as a strategic supplier in Hohhot, and a key provider of clean, low-carbon hydrogen energy in these regions. In this way, the foundation, structure, and strategic significance of the company as a \"clean, low-carbon energy supplier\" will be strengthened and solidified. In the second phase, we will develop energy ecosystem integrators. We are seeking suitable operators of fuel cell buses, freight vehicles, and heavy-duty trucks to establish in-depth cooperation. Together, we aim to integrate the entire industrial chain—from production, storage, transportation, refueling to utilization—thereby creating a closed-loop hydrogen ecosystem involving hydrogen, refueling stations, and vehicles. This will enable Xuyang Group to become an integrator of low-carbon transportation ecosystems ； Based on the hydrogen energy policies, development plans, and financial support available in the locations of various parks under Xuyang Group, efforts are being made to develop hydrogen energy towns and industrial parks. In particular, through coordination among relevant parties and by taking advantage of the unique geographical location and high-purity hydrogen production capabilities of the Dingzhou Hydrogen Energy Park, the goal is to create a model scenario in which hydrogen energy reaches households across the new area, thereby enabling Xuyang Group to become an integrator of distributed hydrogen energy ecosystems. In the third phase, build advanced energy technology developers. By introducing advanced liquid hydrogen production technologies or establishing partnerships with several global suppliers of such technologies, Xuyang aims to become a integrator and provider of civilian liquid hydrogen technologies, enabling large-scale liquid production of hydrogen, its long-distance transportation, and low-cost refueling ； By acquiring manufacturers abroad or within the country that possess advanced technologies for water electrolysis-based hydrogen production, the company will carry out the integration and demonstration of photovoltaic water electrolysis hydrogen production technologies in areas such as Baoding and Xingtai, which have abundant solar resources. This will help Xiuyang Group build the necessary technical foundation for its transition from blue hydrogen to green hydrogen, thereby accelerating the achievement of carbon peak and carbon neutrality by the company ； By making full use of Xuyang Group’s advantages in chemical materials, capital, and resources, it will pursue research and development or acquisitions in regard to the key components of fuel cells and water electrolysis hydrogen production systems – including large-tow carbon fibers, highly conductive activated carbon with a large specific surface area, ion membranes capable of operating over a wide temperature range, and low-loading, high-performance precious metal catalysts – thereby becoming a developer of advanced hydrogen energy technologies and materials. In the fourth phase, we will become an outstanding service provider for energy transition. In the process of shaping itself into a provider of clean and low-carbon energy solutions, an integrator of energy ecosystems, and a developer of advanced energy technologies, Xuyang Group focuses on identifying its common characteristics, actively explores profitable and replicable business models, strives to become a provider of integrated solutions for carbon-neutral energy transitions, and ultimately aims to develop into an outstanding service provider in the field of energy transformation. A relevant official from Xuyang Group said that in line with the aforementioned strategic orientation and development approach, and taking into account the entire industry chain covering production, storage, transportation, processing, and utilization, the Plan also outlines specific initiatives for Xuyang Group’s key hydrogen-related projects. These include the commencement of construction for the second phase of hydrogen production in the Dingzhou facility, as well as the first phase of construction for liquid hydrogen demonstration facilities and comprehensive hydrogen refueling stations. Similar projects are planned for the Xingtai facility, the Hohhot facility, and the Yuncheng facility. These efforts are aimed at providing strong support for the strategic hydrogen supply needs of the Beijing Winter Olympics and Paralympics ； By expanding the layout of hydrogen refueling stations, establishing hydrogen transport fleets, and planning and implementing hydrogen pipeline projects, a hydrogen supply corridor will be created spanning Xingtai–Shijiazhuang–Dingzhou–Baoding–Beijing, as well as a Dingzhou–** hydrogen supply corridor, in order to ensure a supply of low-carbon hydrogen energy for the Beijing-Tianjin-Hebei region ； As a resource integrator, it works together with relevant enterprises that possess advantages to establish fuel cell companies and jointly develop hydrogen-powered trucks. It creates fixed transportation networks for chemical products between Xingtai, Dingzhou, and Tangshan, and carries out pilot projects to replace diesel engines with hydrogen engines in regions such as Tangshan, Baoding, and Shijiazhuang, thereby reducing carbon emissions from logistics and transportation. “In summary, starting with hydrogen production and demonstration projects for hydrogen refueling stations, Xuyang Group will, through comprehensive planning, rational layout, and steady development, foster the hydrogen industry, build hydrogen bases, and create a hydrogen brand. It will first establish a hydrogen supply network in the Beijing-Tianjin-Hebei region to ensure hydrogen supply to southeastern Hebei and southwestern Shandong. As Xuyang’s business expands across the country and globally, it will continue to broaden its hydrogen business scope, engage in joint ventures with upstream and downstream industries to enhance industrial synergy, extend the hydrogen industry chain, and increase the added value of hydrogen. Meanwhile, based on the conservative estimate that Sun Yang Group’s hydrogen supply capacity will reach 13 billion cubic meters per year by 2030, this will enable an annual reduction of 10.9 million tons of carbon dioxide emissions, thereby significantly promoting the green and low-carbon development of the industry and making a positive contribution to the strategic implementation of the ’3060’ dual-carbon targets. ”A relevant official from Xuyang Group said.