Shanghai plans to launch the nation's first hydrogen exchange

Shanghai plans to launch the nation's first hydrogen exchange, which will be jointly developed by Shanghai Environment and Energy Exchange (SEEE) as well as three power and hydrogen companies, state media Shanghai Securities Journal has reported.

SEEE will collaborate with generation utility Shanghai Electric Power Co. Ltd., corporatized hydrogen research institute Beijing Guoqing Zhonglian Hydrogen Research Institute, and hydrogen industrial park developer Shanghai Lingang Hydrogen Industry Development Co. Ltd. to establish the exchange.

SEEE and the companies signed the collaboration agreement on July 16 at a SEEE-hosted carbon forum, the state media said. No details have been provided about when the exchange launch will take place and what products will be offered.

The exchange aims to promote renewables-based hydrogen production to scale up, and play a key role in China's decarbonization journey, the state media reported, adding that the four parties will optimize their unique resources to achieve this.

SEEE, established in 2008, is China's first environment exchange. It currently hosts the trading platform of China's national compliance emission trading scheme.

Shanghai Electric Power Co. Ltd. is a branch of State Power Investment Corporation or SPIC, one of China's largest state-owned power groups. It is also a major power supplier for this metropolis.

"Shanghai Electric Power Co. Ltd. will continuously devote its investments, infrastructures and research capabilities into the hydrogen industry, accelerating the expansion of renewables-based hydrogen production bases and hydrogen refueling networks, as well as resolving the current bottlenecks in storage and transportation," the company told the state media.

Beijing Guoqing Zhonglian Hydrogen Research Institute is established in 2020, partially owned by China Energy Investment Corporation (CEIC), another state-owned power group in China. The company is specialized in research of hydrogen-related technologies.

Shanghai Lingang Economic Development Group is a large state-owned enterprise that focuses on the development of industrial parks and support services.

Its branch company, Shanghai Lingang Hydrogen Industrial Development Co. Ltd., was established in December, specialized in the integration of the hydrogen industrial chain. The branch company targets to establish clusters that connect hydrogen companies at different nodes of the industrial chain, and accelerate the commercial applications of hydrogen in power, transportation, and building sectors.

Earlier this year, China launched its first-ever national hydrogen plan, which targets to build up 100,000-200,000 mt/year of renewables-based hydrogen production, realize 1-2 million mt/year of CO2 emissions reduction, and have 50,000 owned hydrogen fuel cell vehicles by the end of 2025.