Fibreglass pressure vessels supplier UAC enters JV with China’s Yield Capital

Øyvind Hamre, CEO of UAC says:
“We believe our fibreglass-based pressure vessels represent a technological sweet spot for large scale hydrogen expansion in particular, and we are delighted that leading Chinese industrial and technology institutions share this view”

The majority of Yield Capital’s investment in UAC is earmarked for the establishment of a joint venture company in China. UAC will become majority owner in the joint venture with an ownership share of 50.001 percent. The other owners are Yield Capital’s renminbi-fund in cooperation with Chinese industrial group Befar Group, which is one of China’s 500 largest companies. 

Large scale production facility in China 
The joint venture’s purpose is to build a production facility in China with an estimated annual production capacity of 12,000 pressure vessels. Such a facility will provide significant scale advantages and improved competitive position for UAC in all markets, including China and the rest of Asia where the hydrogen market is experiencing huge growth. 

The Chinese companies Hypower and Binhua Hydrogen Energy, a subsidiary of Befar Group, have already placed on order for hydrogen pressure tanks worth a total of US$ 60 million. The order is conditional upon the establishment of the joint venture company and the production facility, plus customary product approval in China. 

Øyvind Hamre, CEO of UAC added:
“The production facility in China will provide powerful scale advantages for customers that today develop their expansion plans based on conventional steel tanks. Further, the partnership with Befar Group and Yield Capital provides with the market access we believe is necessary to succeed in China,”

Technological sweet spot 
UAC specialises in the development and manufacturing of pressure tanks in fibreglass materials. Fibreglass is significantly less costly than for example carbon fibre. Moreover, fibreglass can because of its weight advantage transport 2-3 times more hydrogen compared to similar-sized tanks in steel. 

It is this technological sweet spot between carbon fibre and steel that has encouraged Chinese technology investors to invest in UAC. 

“UAC’s pressure vessel technology provides large environmental and cost savings compared with competing products. The hydrogen market is expected to grow significantly in the coming years and we are well positioned to become a major player in important markets, allowing even more customers to benefit from our technology and production ramp-up,” says Øyvind Hamre.   

Norway plans 
UAC’s headquarters and Norwegian production facility is located in Kristiansand at the South coast of Norway. UAC, which delivered record high revenues in 2020, also plans to invest in this facility. The plan is to quadruple the manufacturing capacity, from 1,000 to 4,000 pressure tanks annually.