1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Hydrogen storage tanks, as specialized containers for storing hydrogen, play a crucial role in numerous hydrogen application fields. According to the different materials used, hydrogen storage tanks are mainly divided into four types: pure steel metal bottles (Type I), steel liner fiber winding bottles (Type II), aluminum liner fiber winding bottles (Type III), and plastic liner fiber winding bottles (Type IV). By now, in China, the design pressure of hydrogen storage tanks generally hasn't exceed 35MPa, while some overseas regions have been able to achieve hydrogen storage and transportation under a high pressure of up to 70MPa. Hydrogen storage technology, as a bridge connecting hydrogen production and utilization, plays a crucial role in the development of the hydrogen energy industry. This project aims to build a hydrogen storage tank production line and related supporting facilities, committed to creating a demonstrative project that integrates hydrogen energy integration and hydrogen storage equipment manufacturing.

1.1.2 Market prospect

(1) Analysis of the current market situation of hydrogen storage equipment

Hydrogen storage technology represents a cutting-edge energy storage solution. In a narrow sense, hydrogen storage involves the "Power to Power" (P2P) conversion process, covering key equipment such as electrolytic baths, hydrogen storage tanks, and fuel cells. This technology utilizes renewable energy surplus electricity during off-peak periods to electrolyze water for hydrogen production, and stores or supplies the generated hydrogen to downstream industries. During peak periods of electricity demand, stored hydrogen is converted back into electrical energy through fuel cells and integrated into the public supply system to balance electricity supply and demand and improve energy efficiency.

In a broad sense, the scope of hydrogen storage technology is broader, focusing on the unidirectional conversion of "electric hydrogen" and including various forms of hydrogen storage. Whether in gas, liquid or solid form, hydrogen can be safely and efficiently stored. In addition, hydrogen can also be converted into chemical derivatives such as methanol and ammonia (i.e., Power-to-X, P2X), further enhancing storage safety and flexibility.

From a technical classification perspective, hydrogen storage technology is mainly divided into physical hydrogen storage (the most mature technology), chemical hydrogen storage, underground hydrogen storage, and other methods of hydrogen storage. Specifically, it can be further subdivided into 12 different methods of hydrogen storage. Physical hydrogen storage mainly includes high-pressure gaseous hydrogen storage and low-temperature liquid hydrogen storage. Chemical hydrogen storage includes coordination hydride hydrogen storage, inorganic compound hydrogen storage, organic liquid hydrogen storage, liquid ammonia hydrogen storage, and methanol hydrogen storage.

Hydrogen storage technology is a key link connecting upstream hydrogen production and downstream hydrogen utilization. The methods of hydrogen storage mainly include gaseous hydrogen storage, liquid hydrogen storage, and solid hydrogen storage. Among them, high-pressure gaseous hydrogen storage technology is the most mature and one of the mainstream technologies in the field of hydrogen storage.

Hydrogen storage cylinders are containers used to store high-pressure gaseous hydrogen. There are four common types of hydrogen storage cylinders: all-metal cylinders (Type I), metal liner fiber hoop winding cylinders (Type II), metal liner fiber full winding cylinders (Type III), and non-metal liner fiber full winding cylinders (Type IV). Type I and Type II hydrogen storage cylinders are difficult to meet the requirements of hydrogen fuel cell vehicles for hydrogen storage density due to their large volume to weight ratio. Type III and Type IV hydrogen storage cylinders adopt a fiber full winding structure, which has a smaller volume to weight ratio and higher hydrogen storage density per unit mass. They have been widely used in hydrogen fuel cell vehicles.

At the enterprise level, more than ten leading domestic enterprises focus on the research and production of type IV cylinders, among which gas storage and transportation equipment manufacturers such as CIMC Enric, Tianhai Industry, Silinda Anke, and Auyan perform particularly well. At the same time, automobile supporting enterprises such as Lopal, FTXT, and YAPP Automotive Parts Co., Ltd., as well as composite material manufacturers such as Sinoma Science and Technology, Kbc Corporation, Ltd., and Shandong Tongjia Machinery, are actively expanding their layout. By now, the total production capacity of existing and planned production lines of major domestic type IV cylinder manufacturers has exceeded 330,000 units.

The hydrogen production equipment market has shown broad development prospects under the joint promotion of technological progress, policy support, and market demand growth. Looking ahead, with the further maturity of technology and the continuous expansion of the market, hydrogen production equipment will become an important growth point in the field of new energy, making significant contributions to the transformation and sustainable development of the global energy structure.

(2) Market prospect outlook for hydrogen storage equipment

Since the beginning of the 21st century, the continuous growth of the global population has led to a sharp increase in energy demand, especially in fields such as industry, transportation and healthcare, making the demand for energy particularly urgent. For a long time, human dependence on fossil fuels has caused serious environmental problems and exacerbated the energy crisis. Therefore, finding a clean and efficient renewable energy source to replace traditional fossil fuels has become an urgent global issue that needs to be addressed.

In this context, China actively responds to the call for global energy transformation and vigorously promotes the development of renewable energy. From 2018 to 2023, China's installed capacity of renewable energy has significantly increased, rapidly growing from 728 million kilowatts to 1.516 billion kilowatts, with a compound annual growth rate of 13%. At the same time, the proportion of renewable energy in the total installed power capacity in China has significantly increased, jumping from 38.3% to 51.9%. This fully demonstrates the growing importance of renewable energy in China's energy system and has become a key force in promoting economic and social development.

With the continuous expansion of hydrogen energy technology in fields such as transportation, industry and electricity, the demand for hydrogen storage equipment is also on the rise. In the transportation sector, in particular, the popularity of hydrogen fuel cell vehicles has brought enormous growth potential to the hydrogen storage equipment market. Meanwhile, with the transformation of the global energy structure, hydrogen energy, as a clean and efficient energy carrier, plays an increasingly important role in energy storage and distribution, which will further promote the development of the hydrogen storage equipment market. The global consensus on reducing carbon emissions is constantly strengthened, and the application prospects of hydrogen energy in transportation, industry and electricity are becoming increasingly broad, which further promotes the expansion of the hydrogen storage equipment market. According to the Investment Feasibility Analysis Report on the Market Depth Research and Development Prospects of China's Hydrogen Storage Equipment Industry from 2024 to 2029, it is predicted that by 2029, the global market size of hydrogen storage equipment will reach 350 million US dollars, and the compound annual growth rate (CAGR) for the next few years is expected to be 4.3%.

The hydrogen storage equipment market has shown broad development prospects under the joint promotion of technological progress, policy support, and market demand growth. Looking ahead, with the further maturity of technology and the continuous expansion of the market, hydrogen storage equipment will become an important growth point in the field of new energy, making significant contributions to the transformation and sustainable development of the global energy structure.

1.1.3 Technical analysis

‌The related technologies of hydrogen production equipment and hydrogen storage equipment mainly include the hydrogen production from water electrolysis technology, hydrogen production from natural gas technology, and hydrogen storage technology.‌

Hydrogen production equipment technology

‌Technology of hydrogen production from water electrolysis‌:

‌Hydrogen production from water electrolysis‌ is to break down water into hydrogen and oxygen under the action of direct current. The main technologies include alkaline water electrolysis (ALK), proton exchange membrane (PEM), solid oxide electrolysis cell (SOEC), and anion exchange membrane (AEM). Among them, ALK and PEM have matured and been widely applied, while SOEC and AEM are still under development.

‌ALK‌ is currently the most mature hydrogen production technology, with a single tank hydrogen production capacity of 2,000-3,000 Nm³/h, a DC energy consumption of 4.0-5.0 kWh/Nm³ for hydrogen production, and an energy efficiency of 60%-80%. This technology can use non-notable metal catalysts at a lower cost, but the starting and regulating speed is slower.

‌PEM‌ has a simple process, a small volume and a wide operating power range, and is suitable for integration with renewable energy. However, its cost is relatively high, and it is still in the stage of demonstration and promotion.

‌Technology of hydrogen production from natural gas‌:

‌Hydrogen production from natural gas‌ is to pretreat natural gas, convert methane and steam into carbon monoxide and hydrogen in a converter, and then convert carbon monoxide into carbon dioxide and hydrogen in a conversion tower. This technology is mature and of low operating costs and high degree of automation, and is suitable for large-scale applications.

Hydrogen storage equipment technology

‌High pressure gas tank storage‌: Hydrogen is compressed into a gas tank made of special material by increasing pressure. This method is technically mature, but has safety risks and weight issues.

‌Liquefied hydrogen storage‌: Hydrogen is cooled to extremely low temperatures until it is liquefied. Liquid hydrogen has a small volume and can store more hydrogen. However, the equipment is of high costs and complex to operate.

‌Metal organic framework (MOF) storage‌: This novel hydrogen storage material has high adsorbability, but it is still in the research stage and its stability and practicality need to be improved.

‌Solid hydride storage‌: Hydrogen gas is stored in the form of compounds through chemical reactions, which is safe to use but has high energy consumption.‌

1.1.4 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.

‌Energy Law (Draft) ‌: The definition and development and utilization rules of hydrogen energy are included in it, which provides legal protection for the hydrogen energy industry; the market pricing mechanism for hydrogen has also been clarified, which is conducive to the promotion and application of hydrogen fuel cell vehicles.

(2) Industrial advantages

The essence of new quality productive forces lies in scientific and technological innovation, promoting quality through innovation. The innovative research and development achievements of Changchun Green Drive have created a model for the development of new quality productive forces of hydrogen energy in Jilin Province, providing strong support for improving the hydrogen energy industry chain, promoting industrial scale construction, and building industrial clusters in the hydrogen energy field in Jilin Province.

Changchun has key scientific research institutes and universities such as Changchun Institute of Applied Chemistry of the Chinese Academy of Sciences, Jilin University, and Northeast Electric Power University. These institutions have formed rich scientific research achievements in hydrogen fuel cells, PEM, hydrogen storage, transportation and application and other aspects, providing a solid foundation for technology research and development of hydrogen storage equipment.‌

(3) Location advantages

Gongzhuling is a vital transportation hub in Jilin Province, with well-developed transportation. It is an important transportation hub in Northeast China, playing a significant role in the socio-economic development. The transportation system is railway and highway transportation, and mainly highway transportation. Highway transportation has gradually become the main transportation form in the comprehensive transportation network with the advantages of flexibility, rapid turnover, easy popularization and direct delivery of goods to the destination. Gongzhuling City has opened up five major transportation arteries leading to Changchun, including Dongfeng Street, Tengfei Street, Guigu Street, Qianjin Street, and Fumin Street. Major transportation arteries, such as Beijing-Harbin Expressway and Changchun-Shenzhen Expressway, Beijing-Harbin Electrified Railway, Harbin-Dalian High-speed Railway (Passenger Dedicated Line), 102 National Highway and 105 National Highway, run through the entire area. Located 92 kilometers from Changchun Longjia Airport, 252 kilometers from Shenyang Taoxian Airport, 440 kilometers from Port of Yingkou, 470 kilometers from Port of Dandong, 540 kilometers from Port of Hunchun, and 590 kilometers from Port of Dalian.

(4) Talent advantages

The strong support from provincial and municipal governments in the hydrogen energy field has helped introduce high-level innovative talents in hydrogen energy from overseas, and establish specialized hydrogen energy technology research and development teams, which promotes technological innovation and industrial development of hydrogen storage equipment‌.‌

Gongzhuling City has abundant labor resources and low costs. It is a blue collar training base in the province, with a workforce of 300,000 industrial workers with various skills, and the labor wages are low. There are Gongzhuling Jinye Occupational Training School, Gongzhuling Vocational Education Center, and Jilin High-tech Vocational and Technical College, which train a group of outstanding graduates every year. Furthermore, there are more than 30 national famous colleges and universities in Jilin Province, including Jilin University, Changchun University of Technology, Northeast Normal University, Jilin Agricultural University, Changchun University of Technology, Changchun University, and Changchun Institute of Engineering, which are, which have many professionals and management talents every year, providing new powerful strength for Gongzhuling.

1.2 Contents and scale of project construction

The project covers an area of 50,000 square meters. The project mainly constructs hydrogen production facilities, hydrogen storage equipment production workshops, liquid hydrogen tank areas, loading and unloading areas, control rooms, and supporting facilities.

Specific products include but are not limited to: efficient hydrogen production equipment, high-pressure hydrogen storage tanks, liquid hydrogen storage and transportation equipment, hydrogen power generation systems, and related hydrogen safety monitoring equipment. These products will be widely used in various fields such as transportation, industry, and construction, providing strong support for promoting the development of the hydrogen energy industry. In addition, the project will also establish a hydrogen energy technology research and development center, which is dedicated to the research and innovation of hydrogen energy technology and provides technical support for the sustainable development of the project.

1.3 Total investment of the project and capital raising

The total investment of the project is 150 million yuan, including the construction investment of 105 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project is completed, the annual sales revenue is 120 million yuan, the profit is 35.71 million yuan, the investment payback period is 5.5 years (after the tax, including the construction period of 1 year), and the return on investment is 23.8%.

Note: “10 thousand yuan” in the table is in RMB

1.4.2 Social evaluation

‌Promoting energy transformation and clean energy consumption‌: Hydrogen storage equipment can convert excess clean energy into hydrogen energy to improve the utilization rate of clean energy and help solve the problem of clean energy consumption. This not only promotes the development of clean energy, but also provides strong support for energy transformation‌.

‌Improving energy utilization efficiency‌: By hydrogen production from water electrolysis, surplus electricity during off-peak periods is converted into hydrogen energy for storage. During peak periods of electricity demand, it is converted into electrical energy through fuel cells, thereby balancing power supply and demand and improving energy utilization efficiency‌.

‌Promoting the development of environmental protection industry‌: Hydrogen energy, as a clean energy source, produces almost no harmful substances during combustion. The development of hydrogen storage equipment has promoted the development of environmental protection industries such as hydrogen fuel cells and hydrogen energy storage, which helps improve the quality of the atmospheric environment‌.

‌Enhancing energy security‌: Hydrogen storage technology can meet the demand for large capacity, long-term energy storage, and is suitable for seasonal and long-term energy storage needs. By storing a large amount of surplus electricity generated from renewable energy, the stability of energy supply is ensured, thereby enhancing energy security‌.

‌Promoting technological innovation and industrial upgrading‌: The development of hydrogen storage technology has promoted the progress and innovation of related technologies, improved and upgraded the hydrogen energy industry chain, and enhanced global competitiveness in the field of hydrogen energy‌.

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

‌National Agricultural High-tech Industrial Demonstration Zone in Gongzhuling City

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of unit

Name: Investment Promotion Service Center, Gongzhuling City, Jilin Province

Address: 501 Zhengyang East Street, Gongzhuling City

2.2 Overview of unit

‌The Gongzhuling National Agricultural High-tech Industrial Demonstration Zone (hereinafter referred to as “Changchun Agricultural High-tech Zone”) ‌ is upgraded from the Jilin Gongzhuling National Agricultural Science and Technology Park. It was included in the management of the National Agricultural High-tech Industrial Demonstration Zone in April 2022 and enjoys relevant policies‌. The demonstration zone covers a total area of 139.39 square kilometers. Located in Gongzhuling City, Jilin Province, it has the core area including Fanjiatun Town, Lingdong Industrial Concentration Zone, and other places‌.

Development positioning and goals

The development positioning of Changchun Agricultural High-tech Zone is to create a new highland for modern agricultural development, with the specific goal of becoming a national leading area for efficient and high-quality grain production, a model area for sustainable development of black soil in Northeast China, a national cluster area for the development of the entire corn industrial chain, and a model area for the revitalization of characteristic rural areas in Northeast China‌. Taking measures such as reform and innovation, investment attraction, and project implementation, Changchun Agricultural High-tech Zone is committed to promoting high-quality development of modern agriculture, striving to join the ranks of the “Top 100 Counties” in the country‌.

Industrial structure and development planning

The industrial development plan of Changchun Agricultural High-tech Zone includes a development pattern of “one zone, two bases, six industries, and eight parks”. In this pattern, “one zone” refers to the modern large-scale agricultural demonstration zone in the main corn producing area of Northeast China, “two bases” refer to the agricultural science and technology innovation base and the achievement transformation demonstration base, and “six industries” refer to the development of the entire corn industrial chain, the modern seed industry, the corn deep processing and food industry, the smart facility agriculture and intelligent agricultural equipment manufacturing industry, the strategic emerging industry in bio-manufacturing, and the modern agricultural service industry; this is a “three main and three auxiliary” industrial pattern‌. In addition, Changchun Agricultural High-tech Zone also focuses on the “chain extension, strengthening and supplementation” project, promoting the concentrated location of major projects in the agricultural field, and accelerating the transformation of scientific and technological achievements‌.

Policy support and investment attraction

Changchun Agricultural High-tech Zone enjoys relevant policy support from the National Agricultural High-tech Industry Demonstration Zone, and has attracted a large number of enterprises and projects through innovative development mechanisms and investment attraction. The demonstration zone adopts the “management committee + company” operation mode, and conducts enterprise management, market-oriented operation and professional services, and the development vitality is surging‌. In terms of investment attraction, Changchun Agricultural High-tech Zone has made precise efforts to attract investment, actively carried out the "going out and inviting in" activity, promoted the communication and negotiation between existing target enterprises, increased the signing rate, and promoted the prompt commencement of the project‌.

2.3 Contact method

Contact unit: Investment Promotion Service Center, Gongzhuling City, Jilin Province

Contact address: No. 501 Zhengyang East Street, Gongzhuling City, Jilin Province

Tel: +86-434-6219312

E-mail: gzlzsbzs@163.com

Website: www.gongzhuling.gov.cn

Contact method of the city (prefecture) where the project is located:

Contact unit: Changchun Cooperation and Exchange Office

Contact person: Zhang Junjie

Tel: +86-15704317930

Fax: +86-431-82700590

E-mail: xmc82763933@163.com