Cummins Inc. and China Petrochemical Corporation announced the formation of a 50:50 joint venture — Cummins Enze Hydrogen Technology Co., Ltd.

Cummins Enze, located in Foshan, Guangdong Province in China, will initially invest $47 million (RMB 300 million) to locate a manufacturing plant to produce proton exchange membrane (PEM) electrolyzers. The plant will initially have a manufacturing capacity of 500 megawatts of electrolyzers per year upon completion in 2023, which will be gradually increased over the next five years to reach one gigawatt of manufacturing capacity per year.

Cummins Enze will also provide a variety of hydrogen generation system solutions to meet diversified application requirements. This will include offering electrolyzers for both small-scale hydrogen production, such as a hydrogen fueling system for on-site hydrogen generation, as well as for large-scale hydrogen generation installations capable of 100 megawatts and beyond.

The joint venture will accelerate the affordability and availability of green hydrogen through increased technological innovation, research and development, and manufacturing capacity.

“China’s embrace of green hydrogen is a breakthrough for the planet, and Cummins and Sinopec joining together to realize the potential of green hydrogen is a huge leap forward for scaling our innovative PEM electrolyzer systems,” said Amy Davis, Vice President and President of New Power at Cummins. “Cummins was one of the first multinational companies to establish an entity in China in 1979, and we are thrilled to now use our deep roots and localized expertise to be at the forefront of the country’s energy transformation. This joint venture brings together Cummins’ and Sinopec’s innovative spirits and pursuit of a more sustainable tomorrow, enabling a carbon-free economy.”