China Xuyang Group (01907) Hydrogen Energy Business: Competitive Advantages of Full-Chain Closed Loop Release Systems

Zhitong Finance App learned that against the backdrop of the deepening of the country's “dual carbon” strategy and the continued release of hydrogen energy industry policy dividends, China's Xuyang Group (01907) hydrogen energy business has achieved breakthrough progress in the fields of intelligent manufacturing, the layout of the entire hydrogen energy industry chain and global operation through efficient collaboration in the five major links of “sales, transportation, production, supply and research”. Hydrogen sales volume in 2025 is expected to increase 15% to 20% compared to 2010 million standard square meters in 2024, and has established a leading position in the industry while further consolidating the industrial foundation.

Promote the integrated layout of “manufacturing, storage, transportation, processing, use+research” to achieve coupling and aggregation

Xuyang Hydrogen Energy comprehensively coordinates and integrates the joint development of all elements and links of the entire industry chain to build the second largest high-purity hydrogen production and supply base in the country and the largest high-purity hydrogen production and supply base in Beijing-Tianjin-Hebei Province.

Preparation side: Relying on abundant hydrogen resources from coking, four high-purity hydrogen production bases in Dingzhou, Xingtai, Tangshan and Hohhot have been built, with 5 high-purity hydrogen preparation production lines with a total production capacity of 34 tons/day to guarantee low-cost, high-quality, clean, and low-carbon supply for hydrogen demand in North China.

Storage and transportation side: Promote the construction of a “gas hydrogen+liquid hydrogen” three-dimensional storage and transportation network. The external hydrogen supply capacity has reached 5.3 tons/day, and the 5 tons/day liquid hydrogen demonstration project is about to be completed.

Filling side: Take the lead in building 5 hydrogen fueling stations with a total filling capacity of 7 tons/day in North China (3 of which are hydrogen-electric oil and gas integrated energy stations) to support the operation of the entire industry chain and precise budget management to achieve stable operation at full load and profit throughout the entire process.

Application side: Covering the core application scenarios of Beijing-Tianjin-Hebei Province, successfully opened dedicated hydrogen energy heavy truck freight lines from Dingzhou to Xinji, Tangshan, Tianjin Port, etc., and collaborated with strategic partners such as Weisheng Energy to achieve the first batch of 10 hydrogen buses and 2 hydrogen energy sanitation vehicles to be put into operation in Dingzhou, accelerating the formation of a healthy ecological cycle of “promoting production with production and promoting chain with production”.

R&D side: According to the basic idea of “improving the competitiveness of the entire Xuyang hydrogen energy industry chain through technical research, standard leadership, and cost optimization”, a hydrogen energy research institute was set up to build a hydrogen energy laboratory to solve “stuck neck” problems such as the inability to independently produce core materials and the high cost of hydrogen production from renewable energy through technological innovation, reduce the cost of green hydrogen and by-production hydrogen through process improvements, enhance economic viability, and continuously improve the autonomous controllability of the industrial chain. Aiming at the commercialization of liquid hydrogen production, we are developing a catalyst for hydrogen conversion and paving the way for large-scale application of liquid hydrogen. As one of the main drafting units, it is deeply involved in the preparation of national hydrogen energy standards such as the “Safety Technical Requirements for High-Purity Hydrogen Conversion Process from Coke Oven Gas”, “Hydrogenation Station Operation Management Code”, and “Hydrogen Pipeline Truck Road Transport and Charging Operation Procedure”, and incorporates Xuyang hydrogen energy's “production, storage, transportation, and use” closed-loop operation summary into national standards to contribute first-line experience, provide practical support, and come up with system suggestions. It not only forms a strong guide for the healthy development of the industry, but also further deepens the overall understanding and macro grasp of the industry and seize better opportunities Xuyang hydrogen energy overall planning layout.

Helping the green transformation of the industry highlight radiation effects

The large-scale application practice of Xuyang hydrogen energy has formed a closed loop of “manufacturing, storage, transportation, and use”. It not only provides replicable and marketable systemic solutions for the green transformation of the Beijing-Tianjin-Hebei industry, and has become a strong support for the green upgrading of the regional industry, but has also verified the market adaptability and long-term sustainability of Xuyang's hydrogen energy business model, and established its position as a benchmark for the low-carbon development of regional industries.

Integrate into the national energy strategy to form regional energy consumption enabling support

The development of China's Xuyang Group's hydrogen energy business is highly compatible with the requirements of the National Energy Administration's “Fengguang Hydrogen Ammonia Alcohol Integrated Base” construction. Relying on its own “hydroammonia alcohol” operation experience, Xuyang is speeding up its expansion into the fields of green hydrogen, green ammonia, and green alcohol, and is deeply involved in regional energy consumption through the path of “using byproduct hydrogen to boost the market and green hydrogen to promote energy transformation”. In particular, it is worth mentioning that Xuyang United Aerospace Science and Technology Group, relying on China's major success in hydrogen expansion liquefaction technology and major breakthroughs in the field of large-scale liquid hydrogen preparation, successfully settled China's first hydrogen expansion 5 ton/day hydrogen liquefaction system in Xuyang, built China's first integrated application demonstration project for liquid hydrogen “production, storage, transportation, and use” in the Group's Dingzhou Park to build a liquid hydrogen production base, not only breaking the technological blockade of nearly a century ago, but also opening the door to commercialization of liquid hydrogen in China Hydrogen tanker transportation-liquid hydrogen storage-gas-liquid The “dual-mode hydrogen fueling station” closes the loop, effectively expands Xuyang's hydrogen energy supply radius, significantly improves the efficiency of clean energy utilization, and provides key support for the consumption of renewable energy such as wind power and photovoltaics.

Relying on industrial collaboration to create multiple values

Chemical field: Efficiently convert industrial by-product hydrogen into high-purity hydrogen. The three products of hydrogen, alcohol, and ammonia are linked to collaborate to help customers achieve a “win-win” of value.

Logistics sector: On the basis that hydrogen energy heavy trucks have been operated on a large scale in Xuyang Dingzhou Park, we rely on the Group's huge logistics network to expand the replacement of hydrogen energy heavy trucks, improve green logistics efficiency, and radiate vigor and inject strong momentum into the construction of low-carbon transportation systems in the Beijing-Tianjin-Hebei region.

Deepen overall planning to build a complete hydrogen energy ecosystem

Facing the future, China's Xuyang Group relies on the advantages of the entire hydrogen energy industry chain to accelerate the construction of an intensive construction, networked layout, and diversified hydrogen energy ecosystem based on Xuyang's rich hydrogen resources to comprehensively enhance the overall competitiveness, system competitiveness and essential competitiveness of Xuyang's hydrogen energy.

Preparation side: Relying on renewable resources and by-product hydrogen, we continue to expand high-purity hydrogen production capacity and sales network to consolidate the leading position in hydrogen energy supply in the country.

Storage and transportation side: Focus on providing stable, economical and efficient solutions for long-distance hydrogen energy transmission and cross-regional energy distribution, building liquid hydrogen ecology and transportation networks, promoting projects such as hydrogen mixing in the Dingzhou-Gaobeidian long-distance hydrogen pipeline and natural gas pipeline to form a hydrogen pipeline network around Beijing, break through storage and transportation blockages, and break up industrial bottlenecks.

Charging side: Expand the integrated energy station network with a self-built/hosting model to enhance the coverage of application scenarios.

Application side: Expand logistics heavy truck replacement, and simultaneously explore diversified scenarios such as hydrogen energy storage and hydrogen energy power generation.

R&D side: Increase investment in research and development of core hydrogen energy technologies, especially in the fields of green hydrogen preparation, liquid hydrogen storage and transportation, hydrogen energy applications, etc., to break through key technical bottlenecks and improve technical level and independent innovation capabilities.

In terms of overall development direction and basic compliance, all plans, layouts and project implementations for further commercialization of Xuyang's hydrogen energy industry chain will be market-oriented, demand-targeted, customer-centered, with continuous profitability, ecological synergy, and energy structure upgrades, actively providing investors with long-term steady returns, and continuously making new and greater contributions to the implementation of the country's “dual carbon” strategy.