Under the terms of the MoU, both companies will collaborate on a variety of green hydrogen initiatives, including hydrogen technology research and development, along with implementing green hydrogen mobility solutions during China's inaugural hosting of the 2022 Winter Olympics.

“We are delighted to partner with Linde to pilot the application of green hydrogen at the Winter Olympics and work toward establishing a model for China's transition to clean energy,” said Tian Jun, party secretary, chairman of the board and president of China Power International Development.

As part of its Made in China 2025 initiative, China has included hydrogen as a major technology for development, reportedly aiming for the gas to make up 10% of its energy system by 2040.

However, green hydrogen, made with water and renewable energy, is more expensive than hydrogen sourced from fossil fuels, although it could become cost competitive by 2030, according to analysis by IHS Markit. The UK-based information provider added that green hydrogen produced by electrolysis is developing rapidly from pilot- to commercial-scale production in many parts of the world.

Second MoU for China energy sector

In a separate deal, Linde has signed an MoU with CNOOC Energy Technology & Services, a subsidiary of China National Offshore Oil Corp (CNOOC), to jointly develop China’s hydrogen energy sector. The partners will explore the option to invest in hydrogen production and filling facilities and advance use of the gas in industrial applications, particularly mobility.

“Together, we will leverage our complementary strengths and work towards a more sustainable, low-carbon future for China,” said Linde executive vice president and CEO Asia Pacific Sanjiv Lamba.

Linde claims to have the largest liquid hydrogen capacity and distribution system in the world, operating 80 hydrogen electrolysis plants as well as the world’s first high-purity hydrogen storage cavern.