(Yicai Global) Oct. 12 -- Datong in China's northern Shanxi province, a gritty city known as the 'coal capital,' will buy 300 fuel cell buses before the end of next year to help rein in air pollution. Chinese A share-listed Shenzhen Xiongtao Industry will provide fuel cells, which are the core components for these buses, the battery maker said in an announcement yesterday.
Its unit Datong Qingxiong Yunding Hydrogen Technology will be responsible for the production and delivery of fuel cells for these buses, the announcement said, also that the company is in talks with bus maker Ruiding New Energy Automobile in the Datong Economic Development Zone on the specific purchase plan.
A fuel cell is an apparatus that transforms potential chemical energy stored in molecular bonds into electrical energy, public information shows.
Ruiding will deliver 300 different types of fuel cell buses to the local government by the end of next year, worth CNY1 billion (USD157 million), under the supply agreement signed earlier between them.
Ruiding undertakes to deliver ten 8.5-meter fuel cell vehicles and 40 10.5-meter vehicles by the end of this year, worth a total of CNY133 million (USD 19.3 million), the announcement added.
Xiongtao Industry, which used to make conventional lead-acid batteries, but now develops new energy batteries, will invest at least CNY3 billion (USD435 million) in a hydrogen energy industrial park in Datong built by Qingxiong Yunding, the former announced at the start of this year. The plant is projected to output 50,000 sets of fuel cell engines and 50,000 sets of fuel cell stacks annually after goinginto production.
Qingxiong Yunding received an investment of CNY350 million in July this year from the Datong government's hydrogen energy industry support fund.
Editor: Ben Armour