Cooperation Agreements made with 11 Companies, and Industrial Funds triggered with 2 Financial Institutions GCL New Energy (0451.HK) Released Hydrogen Energy Strategy

BEIJING,Aug. 10,2021 --A news reportfrom cnenergynews.cn:

The "Hydrogen Energy Industry Development Forum & GCL Hydrogen Energy Strategy Conference",hosted by GCL (Group) Holdings Co.,Ltd. (hereinafter referred to as GCL Group) under the guidance of China Electricity Council,was held in Beijing on July 29.

Hydrogen energy is clean,carbon-free,flexible and efficient; it also has broad sources and extensive application scenarios. Therefore,hydrogen has been placed with great hope in achieving dual carbon goals. According to the forecast by China Hydrogen Energy Alliance,China's annual demand for hydrogen will reach 37.15 million tons by 2030,accounting for some 5% of the end-use energy consumption; by 2060,the annual demand will increase to 130 million tons,a 20% in the total end-use energy consumption.

A vast demand for hydrogen energy will be released domestically and globally,GCL New Energy(0451.HK),a subsidiary of GCL Group,announced at the conference that it will enter the hydrogen industry with the "blue and green hydrogen" strategy. Specifically,the blue hydrogen strategy entails building a synthetic ammonia project with an annual output of 2.3 million tons in the first phase,which will climb to 4 million tons per year. By then,700,000 tons of blue hydrogen can be supplied to the Chinese market. According to the green hydrogen strategy,GCL plans to build 100 integrated energy fueling stations and 6 electrolysis bases with an annual production capacity of 400,000 tons by 2025.

"The blue and green hydrogen constitutes a grand strategic design featured high complementarity and independence," said Zhu Gongshan,Chairman of GCL Group. Geographically,blue hydrogen will be developed in the load centers in east and south China; green hydrogen will be in the new energy bases in central and west China. To achieve coordinated hydrogen development,blue and green will go in parallel with blue ahead of green. When talking about the future of hydrogen energy,he was full of confidence and said "GCL New Energy will be fully market-oriented and not rely on subsidies. The company will build itself as a pioneer enterprise with zero-carbon technology and as a world-leading integrated operation service provider of green and blue hydrogen."

At the conference,11 companies inked agreements for the development and application of blue and green hydrogen. GCL New Energy signed blue hydrogen cooperation framework agreements with the Southwest Research & Design Institute of the Chemical Industry Co.,Ltd. and China Tianchen Engineering Corporation; and signed green hydrogen cooperation framework agreements with Guizhou Gas Group Corporation Ltd.,TÜV SÜD (China) Co.,Ltd.,and Sichuan Boneng Gas Co.,etc.

Moreover,to better serve the hydrogen energy industry and forge a full hydrogen energy industry chain,GCL New Energy (0451.HK) entered into strategic cooperation agreements with JIC Capital Management (Tianjin) Co.,and CCB International Asset Management Limited respectively,to establish a hydrogen energy industry investment fund of approximately 10 billion yuan and a new energy industry investment fund of no more than US$800 million.