Amid the policy initiative and an investment wave of hydrogen energy, vehicles, and applications in India, Taiwan-based Chung-Hsin Electric and Machinery Manufacturing (CHEM) is eyeing huge opportunities in the South Asian market and expecting the hydrogen business to become a new growth driver.
During the recent Forum on the Application and Development of New Energy in Taiwan, Howard Chen, chief strategy officer at CHEM, highlighted the company's strategic focus on Southeast Asia and India in recent years. He emphasized India's significant investments in green energy, noting their parallel to Western countries. He also pointed out that due to incentive policies and proactive efforts by enterprises, several Indian states boast robust investment projects in hydrogen energy.
India launched the National Green Hydrogen Mission with a budget outlay of INR194.44 billion (US$2.33 billion) to achieve green hydrogen production of 5 million tons annually by fiscal 2030 (April 2029 to March 2030) with an associated renewable energy capacity of about 125GW by the year. Developing green hydrogen will help India tackle its severe air pollution problems.
In October, a delegation from CHEM visited India and attended the Taiwan Expo In India held in Mumbai. CHEM showcased its hydrogen-powered three-wheeler and plans to collaborate with a local Indian partner to make 30,000-50,000 vehicles annually under the Build-Operate-Localize (BOL) model. Chen said the company has invested in India for four years except for a temporary disruption due to the pandemic, adding that the hydrogen-powered vehicle received significant attention in the country.
Three-wheelers, mostly powered by diesel or natural gas, are popular in Southeast Asia and India, and there is a shift toward electrification. Chen said that major players have yet to enter the market, so they are actively seeking local partners to build production lines.
Meanwhile, Stellar Power System, a subsidiary of CHEM, is engaged in fuel cell solutions targeting niche markets with small and medium-sized fuel cell battery systems. The company partners with Taiwan-based Chinese Petroleum Corporation (CPC) to set up swappable hydrogen tanks at CPC gas stations. Chen added that samples of fuel cell generators for industrial and household applications were sent to customers.
At an earlier earnings call, CHEM said that their hydrogen business is near the commercialization phase, with a demonstration site at Taipei Port for hydrogen refueling. The company is collaborating with CPC to set up a demonstration station for hydrogen refueling at the Taipei Port, aiming for full operation by the third quarter of 2024.
Moreover, regarding hydrogen buses, CHEM is actively partnering with vehicle manufacturers and aims to initiate shipments by 2024. The company foresees a significant revenue upturn by 2025, expecting this venture to emerge as a pivotal growth catalyst.
