(Yicai) Nov. 5 -- Sichuan Shudao Equipment & Technology, a Chinese firm that specializes in LNG liquefaction and other energy-saving equipment, is linking arms with Japanese auto giant Toyota Motor on the research and development of hydrogen fuel cells with the aim of establishing a hydrogen energy industrial base in Chengdu, the capital of southwestern Sichuan province.

Shudao Equipment’s share price [SHE:300540] was trading up 14.8 percent at CNY27.80 (USD3.91) as of 1 p.m. Earlier in the day it surged 19.7 percent to hit CNY28.97.

Shudao Equipment and its parent firm Shudao Investment Group are joining forces with Toyota and Toyota’s China investment arm Toyota Motor (China) Investment to construct an industrial base in Chengdu, where Shudao Equipment is based, that will focus on hydrogen fuel cells, hydrogen storage, hydrogen production, hydrogen refueling stations, hydrogen distributed power generation, hydrogen energy industry funds and financial cooperation, Shudao Equipment said yesterday.

The first part of the project to be built will be a facility for the R&D and manufacturing of hydrogen fuel cell systems, it said. Once the factory is up and running, the two parties will explore the production of core components such as hydrogen fuel cell stacks depending on the market situation and the hub’s technological R&D capabilities.

The two sides will set up an equally owned joint venture to run the project that will strive to promote green transportation, energy conservation and emissions reduction as well as sustainable development, they said. No financial details were disclosed.

Shudao Equipment is a joint-stock enterprise that is committed to the development and application of new energy and energy-saving technologies, as well as the R&D and manufacturing of transportation equipment. It produces LNG liquefaction, liquid air separation, cryogenic liquid storage, transportation and other energy-saving equipment.

Editor: Kim Taylor