Zhejiang Methanol Hydrogen Technology (ZMHT), Element 1 Corporation (e1NA) and Zhejiang Element 1 (e1China) officially signed the definitive JV Agreement and related License Agreement.
Bend, Oregon USA, 17 May 2022 - Element 1 (e1NA) has today announced the formation of a joint venture company with Zhejiang Methanol Hydrogen Technology (ZMHT) and Zhejiang Element 1 (e1China). The JV will drive methanol-based hydrogen generation technology and commercialize e1NA’s unique technology throughout Greater China.
The new JV, named Zhejiang Hydrogen One Energy Technology Co., Ltd. (JV), will have rights to sell e1NA’s S-Series product for applications in backup power generation, the M-Series for on-board vehicle hydrogen generation, and the L-Series product for EV charging, hydrogen refueling stations, and distributed power generation.
The JV will work with listed companies across China to develop integrated hydrogen production and fueling stations in Qingdao, Wuhan, Jiaxing, Wuxi and other cities. These public companies will be investors in a network of hydrogen production and fueling stations which will be installed throughout China between 2022 and 2025.
The hydrogen generators produced by the JV under license from e1NA use methanol and water as feedstock resulting in cost effective onsite production of hydrogen and a significant reduction in carbon dioxide emissions and local air pollution when compared to gas and oil. This energy generation can be fully carbon-neutral when using renewable methanol.
Under the Agreement, ZMHT will receive a 70% ownership interest in the new JV company and will invest additional capital in stages according to the pace of market development. e1NA has granted the JV an exclusive license for Greater China and will have a 10% direct ownership interest in the JV. e1China, an affiliate company of e1NA will have a 20% ownership interest in the JV.
Commenting on e1NA's strategic cooperation in Greater China, Dr. Dave Edlund, the founder and CEO of e1NA, said: “I’m delighted with this new partnership which has been formed to deliver hydrogen solutions that will significantly reduce the carbon intensity as well as other harmful emissions (particulate matter, NOx, and SOx) traditionally associated with burning fossil fuels. Whereas fuel cell technology has matured substantially over recent decades, the supply of hydrogen as feedstock to fuel cells has lagged considerably, resulting in significant logistic and economic challenges to the wide-scale deployment of fuel cells. e1NA’s methanol-to-hydrogen technology offers a broad solution to this challenge and is also well suited to support hydrogen combustion engines.”
Mr. Zhu Foqing, an industry expert in China's energy field and legal representative of ZMHT, said that: “The cooperation with Element 1 means that China will have a break-through solution on hydrogen production and refueling stations. Through small-size distribution hydrogen production systems, hydrogen stations can produce hydrogen with high-density liquid methanol carrying hydrogen, so as to completely solve the high logistics cost of hydrogen fuel transportation. Therefore the utilization of hydrogen energy can be rapidly popularized in a way acceptable to the market.
“The e1NA patented technology incorporates decades of R&D effort focused on small scale hydrogen production systems. This, coupled with the JV’s near-term commercial opportunity of 300 hydrogen refueling stations will bring new impetus to the utilization of hydrogen energy in Greater China.”
Dr. James Gao, the General Manager of e1China, said: “I am pleased to find a highly suitable investment group and industry elites in Jiaxing, Zhejiang Province. I firmly believe that under the environment of increasing development of China's hydrogen energy industry and the strong support of the government, the JV will make outstanding achievements in the application fields of hydrogen production for refueling stations, heavy duty trucks, and standby power supply.”