Hydrogen Energy
Western Jilin Hydrogen Equipment Manufacturing Industrial Park Project of Songyuan City
1. Introduction to the Project
1.1 Project background
1.1.1 Product introduction
Taking into comprehensive account of the development trend, market demand, and policy support of the hydrogen energy industry in western region of Jilin, it is obviously feasible to construct a hydrogen energy equipment manufacturing industrial park. The main products of the project include hydrogen fuel cells, hydrogen generators, hydrogen compressors, fuel cell systems, hydrogen storage tanks, high-pressure hydrogen storage tanks, and liquid hydrogen storage equipment, etc.
This construction can not only promote close cooperation and coordinated development between upstream and downstream enterprises in the hydrogen energy industrial chain, enhance the overall competitiveness of the industry, but also promote continuous innovation and research and development of related technologies, further improving the performance and quality of hydrogen energy equipment and reducing its cost. From an economic perspective, the construction of the industrial park will attract a large amount of investment, create numerous job opportunities, and bring considerable tax revenue to the local finance. In addition, the widespread application of hydrogen energy will help reduce greenhouse gas emissions, thereby promoting green and sustainable energy development.
1.1.2 Market prospect
(1) Project construction background
Energy constitutes the cornerstone of national economic and social development. Building a “clean, low-carbon, safe, and efficient” energy system is not only the core of a country’s sustainable development strategy, but also the key to ensuring the security, stability, and healthy operation of the national economy. During the “14th Five-year Plan” period, as a key starting point for China to comprehensively build a socialist modernized country, it is also an important stage for achieving the “30.60” dual carbon goals. During this period, China will fully implement the new energy security strategy of “four revolutions and one cooperation”. This is not only a critical period for strengthening energy security guarantees and accelerating green transformation, but also a key stage for promoting high-quality development of the energy industry.
On August 24, 2022, Jilin People’s Government officially released the 14th Five-year Plan for Energy Development in Jilin Province, which clearly proposed the need to actively promote the strategic deployment of “Hydrogen-powered Jilin” project.
In the process of promoting the “Hydrogen-powered Jilin” project, Jilin Province plans to build a complete hydrogen energy industrial chain, covering key links such as production, application, storage and transportation, equipment, and research and development, etc. Jilin Province will be committed to building a hydrogen energy industry layout of “one zone, two axes, and four bases”, fully leveraging the advantages of renewable resources in the western region, the application scenarios and location advantages in the central region, and the energy storage and trade advantages in the eastern region, constructing two hydrogen energy corridors, and building four hydrogen energy industry bases.
The Plan specified that by 2025, Jilin Province will have achieved a renewable energy hydrogen production capacity of 60,000 to 80,000 tons/year, and the output value of the hydrogen energy industry will have reached the level of ten billion. The achievement of this goal is expected to greatly promote the rapid development of the hydrogen energy industry in Jilin Province, and is expected to make Jilin Province a national demonstration zone for integrated development of new energy and hydrogen energy industries.
The “14thFive-year Plan” of Jilin Province has provided a clear path and goal for the development of the hydrogen energy industry, demonstrating Jilin Province’s grand blueprint in the field of hydrogen energy. By deeply exploring the resource advantages of various regions within the province and integrating them in multiple links such as research and development, manufacturing, and application, etc., Jilin Province hopes to become a leading province in the hydrogen energy industry in the near future.
In this context, the implementation of this project is of profound significance for fully implementing General Secretary Xi Jinping’s important instructions on the revitalization of Northeast China, accelerating the all-round revitalization of Jilin Province, assisting in the construction of an ecologically strong province, and ensuring high-quality economic and social development throughout the province during the “14th Five-year Plan” period.
(2) Market analysis of the project
Firstly, as the core product of the hydrogen energy industry, the market demand for hydrogen fuel cells is not only steadily increasing year by year, but also showing an accelerated upward trend. With the rapid development of the new energy vehicle industry, especially the promotion and application of hydrogen fuel cell vehicles, the market’s demand for efficient and environment-friendly hydrogen fuel cells is increasingly strong. The strong support of national policies and the continuous increase in market demand have brought unprecedented business opportunities for the production and sales of hydrogen fuel cells, while also providing vast market space and infinite development potential for upstream and downstream enterprises in its related industrial chain.
As an important equipment for hydrogen supply, the market prospect of hydrogen generators should also not be underestimated. In the hydrogen energy industrial chain, hydrogen generators play a crucial role as they can efficiently convert renewable energy such as wind and solar energy into hydrogen, providing a stable gas source guarantee for the widespread application of hydrogen energy. With the rapid development of the hydrogen energy industry and the increased proportion of renewable energy utilization, the demand for hydrogen generators is expected to show explosive growth, becoming an indispensable key link in the hydrogen energy industrial chain.
In addition, key equipment in the hydrogen energy industrial chain, such as hydrogen compressors, fuel cell systems, and hydrogen storage tanks, also have broad market prospect and enormous development potential. Hydrogen compressors play a crucial role in hydrogen storage and transportation, ensuring safe and efficient delivery of hydrogen to various application scenarios; The fuel cell system is the core technology of hydrogen energy application, which directly affects the efficiency and effectiveness of hydrogen energy utilization; The hydrogen storage tank is a key equipment to ensure the safe storage and efficient utilization of hydrogen energy, and its performance and reliability are directly related to the promotion and popularization of hydrogen energy applications. With the rapid development of the hydrogen energy industry, the market demand for these devices will also continue to expand, becoming an important force driving the progress of the hydrogen energy industry.
High-pressure hydrogen storage tanks and liquid hydrogen storage equipment are important technologies for hydrogen energy storage, and their market demand is also constantly increasing. High pressure hydrogen storage tanks have become the mainstream choice for hydrogen energy storage due to their efficient and safe storage methods, and are widely used in various hydrogen energy application scenarios; while liquid hydrogen storage equipment, with its unique advantage of high-density storage, has shown great potential in long-distance transportation and large-scale storage, becoming an important development direction for future hydrogen energy storage technology.
To sum up, the key equipment and products in the hydrogen energy industrial chain involved in this project have broad market prospect and enormous development potential. This not only provides a solid and extensive market foundation for the smooth implementation of the project, but also injects strong impetus into the rapid development of the hydrogen energy industry in Jilin Province, laying its leading position in the national demonstration zone for the integration of new energy and hydrogen energy industries. By deeply exploring the resource advantages of various regions within the province and integrating them efficiently in multiple links such as research and development, manufacturing, and application, etc., Jilin Province hopes to become a leading province in the hydrogen energy industry in the near future, leading the vigorous development of the national hydrogen energy industry.
(3) The necessity of project construction
Complying with relevant national and local industrial policies and development plans:
According to the Outline of the 14th Five-Year Plan for National Economic and Social Development and Vision 2035 of the People’s Republic of China, China has issued multiple policy documents to fully, accurately and comprehensively implement the carbon peaking and carbon neutrality goals, including the Working Guidance for Carbon Dioxide Peaking and Carbon Neutrality in Full and Faithful Implementation of the New Development Philosophy, the Notice by the State Council of the Action Plan for Carbon Dioxide Peaking Before 2030, the Medium and Long-term Plan for Hydrogen Energy Industry Development (2021-2035), and the 14th Five-year Plan for Energy Development in Jilin Province. This project aims to promote the “Hydrogen-powered Jilin” project, create a “Hydrogen Valley in North China”, and accelerate the construction of a complete industrial chain for production, application, storage and transportation, equipment, and research and development of hydrogen energy. The goal is to establish an efficient and sustainable hydrogen energy industry system, and to focus on building a development pattern of “one zone, two axes, and four bases” for hydrogen energy. Specifically, we will optimize the industrial layout to form a centralized hydrogen energy industry zone; build two major development axes for the hydrogen energy industry, one connecting the east and west，and one connecting the south and north; Meanwhile, we will establish four specialized hydrogen energy industry bases to promote the comprehensive development of the hydrogen energy industry.
Promoting energy transformation and green development:
By constructing the Western Jilin Hydrogen Energy Equipment Manufacturing Industrial Park, the research and innovation of hydrogen energy technology will be accelerated. This not only includes the production, storage, and transportation of hydrogen, but also involves the design, manufacturing, and maintenance of hydrogen energy equipment. With technological progress and innovation, the application scope of hydrogen energy will continue to expand, thereby accelerating the pace of replacing traditional fossil fuels.
The construction of the hydrogen energy equipment manufacturing industrial park will promote the formation and improvement of related industrial chains. This not only covers upstream hydrogen production and supply, but also includes midstream hydrogen energy equipment manufacturing and downstream hydrogen energy applications. Through the industrial agglomeration effect, more enterprises will be attracted to settle here, promoting the improvement and upgrading of the industrial chain, further reducing costs, and enhancing competitiveness.
Hydrogen energy, as a clean and efficient form of energy, is widely used to significantly reduce carbon emissions, help achieve carbon neutrality goal, and promote a shift in the global energy structure towards a greener and more sustainable direction. In this process, the construction of the Western Jilin Hydrogen Energy Equipment Manufacturing Industrial Park in Qianguo County will play a key role.
Promoting local economic development:
The construction of the project will bring a large amount of investment, directly stimulating the development of related industries such as building, materials, and equipment in the local area. A large amount of human resources are required during the construction process, which provides abundant employment opportunities for local residents, including construction workers, engineers, designers, and managers, etc.
After the completion of the project, the operation and maintenance of the hydrogen equipment manufacturing industrial park will continue to require human resource investment, further creating stable employment opportunities for the local area. Meanwhile, with the operation of the industrial park, it will generate sustained economic benefits, bring tax revenue to local government, and increase local fiscal revenue.
The construction and operation of the industrial park will attract more enterprises and investors, promoting the improvement and upgrading of the local industrial chain. This contributes to the diversified development of the local economy, reduces reliance on a single industry, and improves the stability and risk resistance of the economy.
The construction of the project will not only drive local economic development, create employment opportunities, and increase local fiscal revenue in the short term, but also provide impetus for the sustainable development of the local economy in the long term. This will effectively promote the economic prosperity and social progress of Qianguo County and even the entire western region of Jilin.
Enhancing the status and influence of the western region of Jilin:
The construction of the hydrogen energy equipment manufacturing industrial park will mark the leading position of the western region of Jilin in new energy technology. This will make western Jilin a focus of attention and research both domestically and internationally, attracting more attention and resources. The industrial park will become a new business card of western Jilin, demonstrating its image as a hub for innovation and high-tech industries.
With the construction and operation of the industrial park, the western region of Jilin will gradually become a center for research development and application of hydrogen energy technology. This will attract numerous research institutions, universities, and enterprises to make cooperation and investment. They will be attracted by the professional knowledge and industrial cluster effect of hydrogen energy technology in western Jilin, thereby bringing more innovation and business opportunities to the region.
The successful operation of the hydrogen energy equipment manufacturing industrial park will cultivate a high-quality talent team for the western region of Jilin. As the project progresses, it will be necessary to recruit and train a large number of professional talents, including scientists, engineers, technicians, and managers, etc. This will cultivate a group of elite talents with global vision and professional skills for the local area, further enhancing the influence of western Jilin in the field of new energy.
Through cooperation and exchange with other regions and countries, the western region of Jilin can take this opportunity to promote its achievements and experience in hydrogen energy technology. This will help establish broad partnerships, carry out international cooperation projects, and introduce more funds and technologies. The hydrogen energy equipment manufacturing industrial park in the western region of Jilin will become a focus of attention for domestic and foreign enterprises and investors, injecting new vitality into the regional economic development.
By constructing the hydrogen energy equipment manufacturing industrial park, the western region of Jilin will significantly enhance its influence in the field of new energy, attracting more investment and talents. This will lay a solid foundation for the long-term prosperity and development of the region, and play an important role in the global energy transformation.
To sum up, the construction of the Western Jilin Hydrogen Equipment Manufacturing Industrial Park project in Qianguo County is very necessary and will have a positive impact on the local economic and social development.
(4) Market prospect of the hydrogen equipment manufacturing industrial park project
Under the new development pattern of “internal and external dual circulation” and “carbon neutrality and carbon peaking” of hydrogen energy, the hydrogen energy industry is facing unprecedented development opportunities. China’s significant investment in hydrogen production, storage, transportation, and refueling infrastructure, etc. reflects its comprehensive attention and support for the hydrogen energy industrial chain. This comprehensive strategy from source to application not only helps to improve the industrial chain, but also enhances the overall utilization efficiency of hydrogen energy, thereby promoting the healthy and sustainable development of the entire industry.
As the main application field of hydrogen energy, hydrogen powered vehicles have unique advantages that are particularly prominent in the current context of environmental protection and energy transformation. From environment-friendliness, energy conversion efficiency, to noise control, endurance, and other considerations, hydrogen powered vehicles have demonstrated tremendous potential. With the continuous growth of society’s demand for sustainable development and green travel, the expansion of the hydrogen energy vehicle market will undoubtedly open up broader development space for the hydrogen energy industry.
The rapid development of the hydrogen equipment manufacturing market is driven by both technological progress and market demand. With the gradual improvement of technical standards and continuous innovation of equipment technology, the construction of hydrogen refueling stations in China is about to enter a period of rapid development. By now, China has basically established a relatively complete hydrogen energy industrial chain for hydrogen production, storage and transportation, refueling, and application. In terms of market demand, hydrogen energy, as a clean energy, has a wide range of application scenarios, including energy storage, power generation, and transportation fuel, etc., with continuous growth in market demand.
In this context, the hydrogen energy equipment manufacturing industrial park project has emerged, aiming to create a hydrogen energy equipment manufacturing base that integrates research and development, production, and sales. The project will attract leading domestic and foreign hydrogen equipment manufacturing enterprises to settle, forming an industrial cluster effect and further promoting the innovation and application of hydrogen energy technology. By building a comprehensive hydrogen energy equipment manufacturing industrial chain, the industrial park will provide strong support for the rapid development of the hydrogen energy industry.
The construction of the industrial park will rely on advanced manufacturing technology and intelligent management system to ensure high efficiency and quality of equipment manufacturing. Meanwhile, the industrial park will focus on environmental protection and sustainable development, adopt green building standards and clean energy, reduce carbon emissions in the production process, being in line with the environmental characteristics of hydrogen energy. In addition, the industrial park will also provide a series of supporting services, including technical training, financial services, and market promotion, to provide comprehensive support for enterprises settling in the park.
With the gradual improvement of the industrial park and the continuous progress of hydrogen equipment manufacturing technology, it is expected that the industrial park will become a new engine to promote the development of the hydrogen energy industry. It will not only promote the localization and cost reduction of hydrogen energy equipment, but also create more business opportunities for hydrogen equipment manufacturing enterprises. Ultimately, the hydrogen energy equipment manufacturing industrial park project will make significant contributions to achieving the long-term development goals of the hydrogen energy industry in China.
1.1.3 Advantageous conditions of project construction
(1) Policy advantages
The project complies with relevant policy requirements such as the National 14th Five-Year Plan and 2035 Development Plan, the Opinions of the Central Committee of the Communist Party of China and the State Council on Fully, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Peak and Carbon Neutrality, the Notice of the State Council on Issuing the Action Plan for Carbon Peak before 2030, the Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035), the 14th Five-Year Plan for Energy Development in Jilin Province, the Implementation Opinions on Supporting Green and Low Carbon Development and Promoting Carbon Peak and Carbon Neutrality, and the Implementation Plan for the “Hydrogen-powered Jilin” Action. In addition, Jilin Province has also introduced several policy measures to support the development of the hydrogen energy industry, encouraging the construction of the integrated demonstration project for renewable energy hydrogen production and green hydrogen self-consumption, and provided support in project approval, energy-saving review, and other aspects.
(2) Industrial advantages
Firstly, Songyuan City has abundant wind and solar resources, and is a wind power III resource area and a solar energy II resource area. The total installed capacity of wind and solar energy reaches 38 million kilowatts, accounting for 33% of the total capacity throughout the province. It has a huge development space, which provides a solid foundation for the development of the hydrogen energy industry.
Secondly, the new energy industry in Songyuan City is developing rapidly. In 2023, the newly installed capacity of new energy in Songyuan City reached 3.5 million kilowatts, achieving a doubling growth and forming an industrial cluster with an investment of over 100 billion yuan. Songyuan City actively seizes policy opportunities and vigorously develops the new energy industry, forming an industrial cluster centered on projects such as CRRC New Energy and Jilin Oilfield Wind and Solar Power Generation.
Thirdly, Songyuan City also has significant advantages in hydrogen energy equipment manufacturing. For example, Sungrow Hydrogen provides hydrogen production power and electrolyzer equipment in the green hydrogen-ammonia-alcohol integration project in Songyuan City, demonstrating its strength and technological level in hydrogen equipment manufacturing.
Fourthly, Songyuan Municipal Government provides strong support for the new energy industry. Songyuan City has put forward a development strategy of fully implementing the requirements of the provincial party committee and bravely being the “five pioneers”. Among them, in promoting the development of the new energy industry, it will further accelerate the construction of the “five major systems”, start and resume more than 80 new energy projects throughout the year, and complete an investment of 30 billion yuan; The scale of new energy construction will reach 3 million kilowatts, and the output value of the new energy field will reach 10 billion yuan.
(3) Location advantages
Changshan Industrial Park is located in the central area of urban development along the Hunchun–UlanHot transportation axis, and is an important node connecting Songyuan City and Baicheng City. It is 42 kilometers from Songyuan City and 176 kilometers from Changchun City to the south. It is 25 kilometers from Da’an City and the waterway port, 144 kilometers from Daqing City, and 178 kilometers from Harbin City to the north. It is 18 kilometers from Chagan Lake Scenic Area to the west and 65 kilometers from Zhaoyuan to the east. There are Hunchun–UlanHot Expressway, Changchun-Baicheng Railway, and National Highway 302 passing through the park, providing convenient transportation.
The park has convenient surrounding transportation, sound infrastructure, flat terrain, no pollution around, sufficient water and electricity supply, and developed communication, and it is suitable for investment and construction.
(4) Talent advantages
Songyuan City has established 11 industrial colleges, scientific research internship and training bases, and doctoral workstations to support rural revitalization with 7 provincial universities including Jilin University and Jilin University of Finance and Economics. These cooperations have attracted a large number of high-level talents and college graduates to come to Songyuan for scientific research, study, work, and living. It has established a “Talent Home · Project Special Class” and connected 126 industrial projects and 83 talent projects. Through the integration platform of industry and talents, it has attracted a large number of high-level talents, which can provide sufficient talent support for the project.
1.2 Contents and scale of project construction
The planned area is 36,000 square meters. The construction area is 33,000 square meters, including 12,400 square meters of construction area for production, 13,400 square meters of construction area for auxiliary production facilities, 1,000 square meters of construction area for utility works, and 6,200 square meters of construction area for office and living facilities.
The main output products of the project include hydrogen fuel cells, hydrogen generators, hydrogen compressors, fuel cell systems, hydrogen storage tanks, high-pressure hydrogen storage tanks, and liquid hydrogen storage equipment, etc.
1.3 Total investment of the project and capital raising
The total investment of the project is 1,500 million yuan, including the construction investment of 1,100 million yuan.
1.4 Financial analysis and social evaluation
1.4.1 Main financial indexes
After the project reaches the production capacity, its annual sales revenue will be 1,200 million yuan, its profit will be 360 million yuan, its investment payback period will be 5 years (after the tax, including the construction period of 1 year) and its return on investment will be 24.3%.
Note: “10 thousand yuan” in the table is in RMB
1.4.2 Social evaluation
Economic effect: The construction and development of the hydrogen energy equipment manufacturing industrial park can drive the development of related industries, including hydrogen production, storage, transportation, and utilization, etc., increase new employment opportunities to the economy and promote the development of the economy from high energy consumption and high emission mode to low-carbon economy.
Environment-friendliness: By promoting hydrogen fuel cell vehicles and using renewable energy to produce hydrogen, the hydrogen energy equipment manufacturing industrial park can reduce exhaust emissions and greenhouse gas emissions, improve air quality, and reduce environmental pollution, having a positive impact on addressing climate change.
Enhancing energy security: Developing the hydrogen energy equipment manufacturing industrial park can increase the diversity of energy supply, reduce reliance on traditional energy, and improve energy security. It can reduce energy supply risks through decentralized and distributed supply.
Promoting sustainable development: The construction and operation of the hydrogen equipment manufacturing industrial park can help promote the sustainable use of energy, reduce pressure on limited resources, and promote the renew-ability of energy. Meanwhile, the application and promotion of hydrogen energy technology are also closely related to sustainable transportation, sustainable buildings, and other fields, providing support for achieving sustainable urban development.
1.5 Cooperative way
Sole proprietorship, joint venture and cooperation.
1.6 What to be invested by the foreign party
Funds, other ways can be discussed in person.
1.7 Construction site of the project
Changshan Industrial Park
1.8 Progress of the project
The project proposal has been prepared
2. Introduction to the Partner
2.1 Basic information of unit
Name: Changshan Industrial Park Management Committee
Address: About 220 Meters Northwest of Changshan Town Middle School, Changchun-Baicheng Expressway, Qian Gorlos Mongol Autonomous County, Songyuan City
2.2 Overview of unit
Changshan Industrial Park is a city-level industrial park approved by the Municipal Party Committee and the Municipal Government in August 2003, with a planned area of 3 square kilometers; In October 2014, with the approval of the Municipal Government, the planned area was changed to 9.01 square kilometers. The park has abundant electricity, heat resources, and chemical gas resources. Among them, the Datang Changshan Thermal Power Plant generates 1.2 billion kilowatt hours of electricity per year. When the total electricity consumption index of the major electricity users in the industrial park or of the industrial park reaches a certain scale, electricity can be directly supplied to the users by the power plant through handling wheeling with approval, fundamentally reducing electricity cost; The annual heating supply capacity of Datang Changshan Thermal Power Plant is over 104,400 GJ, with a heating supply pressure of 0.3-1.5 MPa. Enterprises that require steam can be directly supplied with steam through negotiations with the manufacturer; The storage capacity of fly ash in the park is 11 million cubic meters, and the abundant fly ash resources can provide raw material guarantee for the development of new building materials; Changshan Fertilizer Plant produces 44,000 cubic meters of liquid oxygen and nitrogen, respectively, 6,100 cubic meters of liquid argon, 12,000 cubic meters of liquid carbon dioxide, 200 million cubic meters of oxygen, and 3,000 tons of morpholine annually, which can provide supporting services for large-scale industrial production. The park has convenient surrounding transportation, sound infrastructure, flat terrain, no pollution around, sufficient water and electricity supply, and developed communication, and it is suitable for investment and construction.
2.3 Contact method
Contact person of the city (prefecture) where the project is located:
Contact unit: Songyuan Municipal Commerce Bureau Investment Attraction Service Center
Contact person: Yu Lili
Tel: + 86-18004388787