Shell has announced its plans to form a joint venture with China-based Shenergy Group to develop a hydrogen refueling network in Shanghai, reported Reuters.
This will be the first of its kind for the European energy company in Asia.
In the next five years, the joint venture intends to construct six to ten hydrogen refueling stations in Shanghai as well as the nearby Yangzte River Delta.
The JV also plans to build up to 30 stations by the end of this decade.
Shell stated that the 30 stations will be able to supply hydrogen fuel to about 3,000 trucks or buses on a daily basis.
In the near term, the JV plans to obtain low-emission hydrogen from local chemical plants.
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By GlobalDataIn the long term, the entity will generate and supply green hydrogen obtained from renewables, such as solar and wind power.
In May, the Shanghai municipal government declared that the financial hub aims to have seventy hydrogen refueling stations and over 10,000 fuel cell vehicles over the next three years.
Shenergy Group, a state-owned entity, serves as a leading distributor of power and natural gas in the city.
Last month, Shell subsidiaries Shell Nederland and Shell Overseas Investments took a final investment decision to construct a renewable hydrogen plant in the Netherlands.
Once operational in 2025, Holland Hydrogen I plant is expected to become Europe’s largest renewable hydrogen plant.
The 200MW electrolyser, which will be built on the Tweede Maasvlakte in the port of Rotterdam, will generate up to 60,000kg of renewable hydrogen each day.
Offshore wind farm Hollandse Kust (noord), which is partly owned by Shell, will supply renewable power for the electrolyser.
The renewable hydrogen will be provided to the Shell Energy and Chemicals Park Rotterdam through the HyTransPort pipeline.
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Image: Shell’s hydrogen refuelling station. Credit: Shell plc.