Jiahua Energy (600273): Cooperation With Zeng Neng Group For Hydrogen Energy Utilization

In July 8th, Jiaxin energy signed the strategic cooperation framework agreement and the cooperation framework agreement of the hydrogen liquefaction plant in the Jiaxing port area and the Zhejiang Provincial Energy Group Company Ltd ("Zhejiang Neng group").

According to the agreement, the two sides will cooperate in the hydrogen supply chain and the comprehensive utilization of the industry. Jiaxi energy plays an important role in the production of hydrogen from its industrial byproduct, which provides protection for Zeng Neng group's hydrogen supply. The two sides intend to establish a 1m3/h demonstration plant for hydrogen liquefaction in the Jiaxing port area by the end of 2019 (the daily processing capacity is about 1.92 * 104Nm3).

Among them, Zhejiang Neng group provides production process design and process technology, liquefaction equipment installation, Jiaxi energy provides gas source (hydrogen purity more than 99.9972%), site, qualification resources, related auxiliary facilities and personnel. The two sides cooperate on behalf of the processing mode. Zhejiang Neng group rents the whole set of liquefaction equipment to Jiaxin energy in the form of paid lease, and Jiaxing energy will sell the liquid hydrogen at the reasonable price to the Zhejiang energy group.

Jia Hua Energy said that the company's existing chlor alkali plant part of the surplus hydrogen resources, has been external sales business, at present, the main customers are downstream chemical enterprises, still need to be purified to supply hydrogen energy projects. The company intends to sell the liquid hydrogen that meets the standards to Zeng Neng group, and the Zhejiang Neng group is responsible for investing in liquefied equipment and liquid hydrogen storage equipment and external sales of liquid hydrogen.

According to the announcement, the government's examination and approval documents have not yet been obtained in this cooperation project, and the specific business involved in the agreement must be signed separately.