(Yicai Global) Oct. 14 -- SAIC Motor Corp will invest over CNY2 billion (USD310.7 million) to construct a plant for heavy-duty hydrogen fuel cell-powered trucks in the Inner Mongolia Autonomous Region, China’s biggest carmaker said yesterday.

Located on a 80-hectare site in Ordos, the project is expected to have an annual output of 24,000 hydrogen-powered heavy-duty trucks and 5,000 fuel cell systems once fully up and running in 2024, Shanghai-based SAIC said yesterday. The project is estimated to reduce greenhouse gas emissions by nearly 500,000 tons a year, it added.

Ordos is a major coal production hub and is home to a large number of coal-related chemical factories. As such, it also has abundant hydrogen resources, which is a by-product of these chemical processes. There is also huge demand in the northern industrial city for heavy-duty trucks to transport the coal and other goods, making it an ideal location for this project, SAIC said.

The project is spearheaded by two SAIC units, SAIC Iveco Hongyan Commercial Vehicle and Shanghai Hydrogen Propulsion Technology. Built in two phases, the first phase will have an annual output of 12,000 zero emission trucks and 3,000 fuel cell systems and should to be ready by 2023.

SAIC launched its hydrogen power strategy in September last year, saying that it plans to develop at least 10 hydrogen fuel cell-powered autos. It will also take Hydrogen Propulsion public with the aim of raising the fuel cell developer’s market capitalization to CNY10 billion (USD1.6 billion) before 2025.

Editor: Kim Taylor