Plastic Omnium, Shenergy Group JV to accelerate hydrogen development in China

On Jan. 11, Plastic Omnium (Île-de-France) and Shenergy Group (Shanghai, China) subsidiary Rein announced the setting up of a 50/50 joint venture (subject to regulatory approval) based in Shanghai to manufacture and market Type III and IV high-pressure hydrogen storage systems for the commercial vehicle market in China. Plastic Omnium and Shenergy Group also signed a memorandum of understanding (MOU) to extend strategic cooperation around building hydrogen ecosystems and contributing to the roadmap for China’s carbon neutrality.

The new joint venture gives both partners the opportunity to take full advantage of Plastic Omnium’s tech leadership in high-pressure hydrogen vessels, and benefit from Rein’s footprint in the manufacture of hydrogen transportation and storage systems specifically for the Chinese market.

Fully consolidated in Plastic Omnium’s financial statements, this joint venture covers the setup of production capacities in Shanghai (Jiading district) to serve the growing Chinese market; a pilot production line for Type IV high-pressure hydrogen vessels — featuring a thermoplastic liner and a thick carbon fiber structure — will be in place by 2025, and a new mega-plant with an annual production capacity of up to 60,000 high-pressure hydrogen vessels is scheduled to be operational from 2026 onwards.

“As a major player in the energy sector, Shenergy Group is a special partner with an ambitious hydrogen strategic roadmap for China,” Laurent Favre, CEO of Plastic Omnium, notes. “This partnership, therefore, takes Plastic Omnium to a new level in the Chinese market for hydrogen-powered commercial vehicles. We are building the manufacturing capacity we need to seize every opportunity to become one of the major winners in the mobility transformation. It also gives us a solid basis from which to explore new opportunities for further cooperation in the local hydrogen ecosystem.”

Since 2015, Plastic Omnium has invested more than €300 million to ensure that it has the skills, product portfolio and production capacity in place to cover every link in the hydrogen mobility value chain. The company plans to invest an average of €100 million annually to achieve revenue generation of €300 million by 2025, rising to €3 billion by 2030.