CIMC Enric Holdings Ltd., which is involved in providing equipment to transport hydrogen, announced its partnership with South Korea’s North Jeolla Province to advance into the Korean market, raising concerns that the move could serve as a barrier to Korea’s energy independence.

According to multiple industry sources on Wednesday, the North Jeolla Province government will sign a memorandum of understanding (MOU) with CIMC Enric, a services and systems solutions provider for transport, storage and processing unit of China International Marine Containers (Group) Ltd., on Friday.

“The Chinese company will offer technical support and advice for a green hydrogen cluster project led by the local government,” said an unnamed industry source. “The two sides are said to be discussing building plants in Korea.”

CIMC Enric manufactures tube trailers and tanks used for the transportation and storage of hydrogen. The company, initially launched as a supplier of compressed natural gas trailers and tanks, has advanced into the hydrogen-based business.

North Jeolla Province is working on a Green Hydrogen Production Cluster project in the Saemangeum industrial complex. However, the local hydrogen-based industry is mostly focused on production and consumption of green hydrogen, with a lack of companies specializing in hydrogen storage, which is critical technology for distribution and transportation.

Industry insiders worry that engaging a Chinese company in the project that taxpayers’ money will be spent seems inappropriate. In addition, CIMC Enrin is known to have less advanced technology compared with local manufacturers in hydrogen distribution and commercialization.

“We are in talks with CMIC Enric but we haven’t yet decided on a local plant construction or other details,” said an official from North Jeolla Province.

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]