(Yicai Global) Sept. 10 -- Chinese chemicals maker Hongda Xingye Group will pay CNY4.5 million USD630,000) to a state-owned research institute in order to use the latter's intellectual property right that allows its user to store and deliver hydrogen more easily. 

Hongda Xingye and Beijing's General Research Institute for Nonferrous Metals have penned a contract under which the former will pay for the IP, which involves using a lanthanum nickel-based alloy, as well as a cut of sales for eight years, the Guangdong province-based company said in a statement yesterday, without disclosing the percentage of the cut. 

Hongda Xingye is well-positioned to leverage the Chinese government's new policy to promote the development of zero-emission hydrogen fuel cell vehicles as the chemicals firm has abundant resources of the by-product caused by many industrial processes. Hongda Xingye also has subsidiaries that process rare-earth minerals in the Inner Mongolia Autonomous Region.

The R&D institute has achieved the capacity to store hydrogen in a unit size of 100 kilograms, as well as established a small-scale production line, the statement added. The GRINM will assist Hongda Xingye in building a larger production facility. 

Editor: Emmi Laine