The world’s biggest solar company, China’s Longi Green Energy Technology Co., is entering the hydrogen market.
At close to $52 billion on Friday 2nd April 2021 the company, which manufactures cells, panels and wafers, is by market capitalization the world’s largest solar company.
In Asia, shares rose as much as 4.9% coinciding with recent news.
In an exciting move Xi’an Longi Hydrogen Technology Co. was registered March 31 in China, according to a new report from Solarzoom.
Li Zhenguo is serving as the company’s chairman (Longi’s billionaire president and founder), and the shareholders are Shanghai Zhuqu Private Equity Investment Fund Partnership and Xi’an Longi Green Energy Venture Capital Management Co.
Hydrogen is the carbon-free fuel that Energy companies are increasingly turning to. It can be produced by water electrolysis and fuelled entirely by renewable energy (giving it the title ‘green hydrogen’), then stored, transported and used to power numerous currently high-polluting applications: everything from buses to trains, to ships, cars, home energy, generators and industry. This explains why so many governments and businesses are agreeing to invest in green hydrogen.
Electrolysis is currently expensive and the business of producing this ‘green hydrogen’ needs to rapidly scale up in order to bring costs down. At the moment most industrially used hydrogen is made using fossil fuels, but this less expensive form of Hydrogen manufacturing leaves a carbon footprint.
Reducing the costs of clean hydrogen output by scaling up the industry is recognised to be the solution for our energy needs that will have least impact on the way we live, but the most impact on otherwise catastrophic climate change.
Li says says the long term is how his company plans:
“We don’t only look at today, but also three, five years later or even eight or 10 years later,” he said. “After finding the direction, we don’t begrudge money on research and development.” Investing in Hydrogen puts his firm in line with many others seeking to mitigate the effects of climate change.