[Haichuan Hydrogen Energy] The first domestically produced PEM electrolyzer for hydrogen production developed by Cummins Enze, with funding from Sinopec Capital Company’s funds, will be ready for production by July next year

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In January 2022, Enze Fund, established by Sinopec Capital Corporation, and Cummins Enze (Guangdong) Hydrogen Energy Technology Co., Ltd., founded jointly with Cummins, set up operations in Foshan, Guangdong, and launched a project to build a production base for equipment used in water electrolysis for hydrogen production. After a year of development, Cummins Enze has established a comprehensive organizational structure and local manufacturing capabilities. It is able to carry out the local development, production, and sales of advanced proton exchange membrane (PEM) electrolysis-based hydrogen production technologies in China, thereby promoting the development and widespread use of green hydrogen production solutions. The Cummins Enze joint venture is an important part of Enze Fund’s strategy in developing the hydrogen energy industry chain. The hydrogen energy industry chain is divided into four stages: production, storage, transportation, and refueling. Hydrogen production, or the source of hydrogen, is the starting point of this industry chain. Since the cost of hydrogen production largely determines the economic viability of using hydrogen, scalability and high efficiency are key factors in reducing the costs of electrolyzer systems and ultimately enabling the commercialization of the hydrogen industry. Based on advanced hydrogen production technologies, Cummins Enze will localize the production of related equipment, further enhance its R&D capabilities, expand the market scale, and optimize its supply chain. This approach helps to address the key issue of high costs associated with proton exchange membrane electrolysis systems for hydrogen production, thereby supporting various applications such as industrial manufacturing, chemical processing, and renewable energy solutions, and contributing to the industry’s pursuit of green decarbonization goals. As the first fund established by Sinopec Group, Enze Fund has, since its inception, been tasked with fostering new momentum and creating new engines for the transformation, upgrading, and sustainable development of Sinopec as well as China’s energy industry. The Enze Fund is a flagship platform established by Sinopec Capital to support Sinopec’s strategic expansion into emerging markets, with a focus on the hydrogen energy sector; the first phase of this fund has a size of 2 billion RMB. The main limited partner of the fund is Sinopec Capital; other limited partners include the Manufacturing Transformation and Upgrading Fund, Tianjin Haihe Industry Fund, and Foshan Nanhai Financial High-Tech Zone Investment Holding Co., Ltd. As an industry-oriented investor with a strong industrial background, Enze Fund always adopts an industry-focused perspective. Within just two years since its establishment, the fund has invested in leading projects across the industry chain, such as Guofu Hydrogen Energy, Haidilson, Aodong New Energy, Jupeng Biology, China Hengrui, and Xingyou Technology. Most of these projects have completed subsequent rounds of financing, resulting in significant value appreciation. Adhering to the philosophy that \"30% is investment and 70% is management,\" the fund leverages the robust industrial resources of Sinopec and its various shareholders to provide thorough support and resource connections for the invested projects. By fostering industry collaboration, it creates a positive cycle between industry and capital, thereby helping the invested enterprises achieve high-quality and rapid development. Since the beginning of this year, the implementation of PEM electrolyzer projects has accelerated. According to incomplete global statistics on hydrogen energy, several PEM electrolyzer projects in China have made significant progress, with 7 of them reaching MW-scale capacity.