Kangsheng and Zhangjiakou set up hydrogen energy fund in Olympics site

The Chinese firms have committed CNY1 billion on the fund and on a vehicle plant in the co-host city.

Chinese mechanical parts manufacturer Kangsheng watched its stock prices rises upon announcing its commitment to a hydrogen energy fund. This agreement involves a partnership with Zhangjiakou.

The two companies are putting $141.3 million into the investment.

Kangsheng and Zhangjiakou are making the investment into the hydrogen energy fund and a vehicle plant which will be constructed at the Beijing Winter Olympics co-host city. Kengsheng watched its stock climb by 6 percent upon the announcement. This brought the stock to a three-week high of $0.36 on a market cap of $387.7 million.

A Kangsheng unit has formed a cooperation framework agreement over the fund with the municipal administration. The company, based in Zhejiang province, released a statement explaining its role in the investment into the renewable energy and the plant. Both participants in this agreement will contribute $28.3 million. The remainder will be filled in by other firms as well as financial institutions in the country.

The effort involves both the hydrogen energy fund and an electric and H2 vehicle production base.

The plan also includes the construction of an H2 and electric vehicle production plant in the city. These will manufacture a total of 1,500 passenger cars and sanitation vehicles every year. Should everything go according to plan, the plant will be ready to begin operations as early as 2021.

Zhangjiakou, from Hebei province, has added H2 fuel among its primary development industry. The city will play host to a number of snow-based events at the 2022 Winter Olympics. These include sports such as snowboarding and cross-country skiing.

The new hydrogen energy fund will provide backing for a number of high-quality projects. It will help to pay firms at many layers of the upstream and downstream H2 industry, as well as about 60 percent of that area.

The new agreement aligns with the strategic needs Kangsheng has identified for further upgrading and development of the hydrogen power industry, said the company in its statement. The goal is to help propel this sector forward in a meaningful way within China.