Air Products Partners with Chengzhi to Drive Zero-emission Heavy Transportation in China's Yangtze River Delta

Rhea-AI Summary

Air Products (NYSE:APD) and Chengzhi Shareholding Co. Ltd. have launched their first commercial-scale hydrogen fueling station in Changshu city, Jiangsu province, China, to support green logistics operations for multinational and domestic companies. The station fuels hydrogen fuel cell trucks of various companies, including Budweiser China, Yum China, Nestle China, and JD Logistics. The station is part of the 'Changshu Hydrogen Fuel Cell Vehicle (HFCV) Industry Development Plan' and is contributing to the development of the hydrogen corridor in the Yangtze River Delta Region.

Positive

• Partnership between Air Products and Chengzhi Shareholding Co. Ltd. to accelerate transport decarbonization in China's Yangtze River Delta.
• Service contracts with multinational and domestic companies to pilot zero-emission logistics operations.
• Changshu station's contribution to the development of the hydrogen corridor in the Yangtze River Delta Region.

Negative

• None.

Two Companies' First Commercial Hydrogen Fueling Station Supports Multinational and Domestic Companies to Pilot Green Logistics Operations 

SHANGHAI, Nov. 9, 2023 /PRNewswire/ -- Air Products (NYSE:APD), a world-leading supplier of hydrogen and hydrogen for mobility solutions, has partnered with Chengzhi Shareholding Co. Ltd., a Chinese state-owned high-tech industry group, to accelerate transport decarbonization in China's Yangtze River Delta. The two companies, through their joint venture, have launched their first commercial-scale hydrogen fueling station in Changshu city, Jiangsu province, capable of fueling city buses and heavy-duty trucks in logistics.

Commenting on the strategic alliance, Wei Junmin, President of Chengzhi, said, "Chengzhi shares Air Products' commitment to China's net-zero transition and is pleased to extend our long-term partnership to support green transportation by leveraging the strengths of both companies. Our first hydrogen station in Changshu has been in operation for several months fueling public transport and truck fleets. We look forward to deepening our collaboration to accelerate the development of hydrogen vehicles and the hydrogen value chain."

Under service contracts, the station fuels hydrogen fuel cell trucks of various multinational and domestic companies, including Budweiser China, Yum China, the logistics service provider of Nestle China and JD Logistics, to pilot zero-emission logistics operations. These include a 49-ton heavy-duty hydrogen fuel cell truck of Budweiser running between Nantong and Suzhou in East China which has recently logged over 10,000 safe kilometers.

Since the "Changshu Hydrogen Fuel Cell Vehicle (HFCV) Industry Development Plan" was issued in 2019, Changshu has been actively pushing for HFCV development and initially formed a relatively complete industrial chain to link into the hydrogen corridor construction in the Yangtze River Delta Region. The city is part of the Shanghai cluster for the national HFCV demonstration project.

Saw Choon Seong, China President at Air Products said, "Hydrogen plays a key role in decarbonizing transportation. Air Products is honored to leverage our experience and technologies, join forces with Chengzhi and support the customers' pilot projects to drive net-zero transition in China's mobility sector. The Changshu station is part of our strategy to support the commercialization of hydrogen-powered heavy-duty vehicles and development of the HFCV demonstration clusters. We will continue to pursue opportunities and take actions to help the government achieve its Dual Carbon goals."

With more than 60 years of hydrogen experience, Air Products works across all facets of the hydrogen value chain, including production, distribution, storage, and dispensing and has been a pioneer in hydrogen fueling for decades. As global leader in hydrogen production, Air Products has hands-on operating experience with over 250 hydrogen fueling station projects in 20 countries, and its fueling technologies are used in over 1.5 million fueling operations annually.

As one of the first multinational gas companies to enter China, the company has participated in several hydrogen demonstration projects to advance the energy transition. These include the country's first hydrogen fueling station for 2008 Beijing Olympics, the first 70MPa station project in Zhangjiakou for 2022 Beijing Winter Olympics, China Energy Investment Corporation Limited's first hydrogen fueling station, and Shandong province's first stationary hydrogen fueling station with both 35MPa and 70MPa fueling.

About Air Products 

Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and provides turbomachinery, membrane systems and cryogenic containers globally.

The Company had fiscal 2023 sales of $12.6 billion from operations in approximately 50 countries and has a current market capitalization of about $60 billion. Approximately 23,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.

Cautionary Note Regarding Forward-Looking Statements: This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based. 

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SOURCE Air Products

FAQ

What is the significance of the partnership between Air Products and Chengzhi Shareholding Co. Ltd.?

The partnership aims to accelerate transport decarbonization in China's Yangtze River Delta.

Which companies are involved in the service contracts for the hydrogen fueling station?

Budweiser China, Yum China, Nestle China, and JD Logistics are among the companies involved in piloting zero-emission logistics operations.

What role does the Changshu station play in the development of the hydrogen corridor in the Yangtze River Delta Region?

The station contributes to the formation of a relatively complete industrial chain for hydrogen fuel cell vehicles in the region.