Ideanomics Inc. (Nasdaq: IDEX) and its strategic Mobile Energy Group (“MEG”) has today announced its strategic partnership with the China National Petroleum Corporation Nanjing (“CNPC” or “PetroChina”) to begin converting existing fossil fuel gas stations in the city of Nanjing. PetroChina is the world’s third largest oil company and plays a leading role in energy distribution throughout China.
Nanjing, capital of China’s eastern Jiangsu province, and the second largest city in the East China region, is one of China’s most prosperous regions. Nanjing is home to over 8 million residents and is a significant commercial center in the region. PetroChina operates gas stations throughout Jiangsu province.
Under the terms of the agreement, MEG and PetroChina will establish a joint venture to construct new energy fuel stations and begin converting existing gas stations into hybrid stations. The new energy fuel stations will promote low emissions and clean energy production for electric vehicles through fuels such as Mixed Hydrogen and Compressed Natural Gas (CNG) power generation, Hydrogen power generation, Mixed Methanol and Hydrogen power generation, as well as fast charge networks, and other related technologies provided by MEG.
“This deal puts down a marker for the energy industry, with a major energy provider truly embracing the future adoption of EV, and the infrastructure required to meet the consumption needs of both commercial vehicle operators and consumers alike,” said Alf Poor, CEO of Ideanomics. “We are extremely pleased to be working with a major global energy supplier such as PetroChina on the future of energy needs for automotive transportation. Our MEG Group is focused on innovation and partnership with market leaders, and this agreement serves as the most compelling example to date of the size and scope of our capabilities as a catalyst throughout the EV value chain. Our Chairman Dr. Bruno Wu’s vision is coming to fruition, and this deal is a testament to his ability to bring the world’s biggest players to the table to solve some of the biggest challenges to the automotive value chain in a cohesive and meaningful manner.”
This landmark deal provides the critical charging infrastructure required to support the mass adoption of eco-friendly vehicles and holds the potential to be the benchmark for future fossil fuel station conversions globally.
“We are very pleased to be working with Ideanomics’ MEG Group. They share a vision of the future with PetroChina which every energy provider should be focused on, which is a progressive transition from fossil fuels to clean energy in the years to come,” said Xu Xingxiang, Chairman of PetroChina Nanjing. “We pride ourselves on embracing innovation and we are excited to be entering a transformational phase for our energy delivery network. We look forward to partnering with MEG on this ground-breaking project to re-purpose our existing assets and construct new energy fuel stations in a manner that will not disrupt a proven model which both enterprise and individual consumers know and trust.”
For PetroChina, this agreement enables the upgrading and transformation of its existing gas station network into new energy and clean energy fuel stations, promoting the consumption of clean energy through traditional consumer points of purchase. In addition, the joint venture will develop and deploy an electric vehicle charging network to complement the gas station conversion program. For Ideanomics and MEG, the partnership is the first official activity for MEG’s Energy Sales Business Unit, one of MEG’s four revenue-generating operations. The strategic partnership also serves as a framework agreement for future agreements between the parties, such as the monetization and revenue-sharing of the electricity purchased and sold through AI enabled technologies and systems for the new energy fuel stations and charging networks as they come online. Energy production and the sale of electricity is one of the key components of Ideanomics’ MEG Smart Management Platform which unites its comprehensive network of suppliers, manufacturers, power generation companies, financial partners, agencies, association and enterprise partners to accelerate the global adoption of environmentally friendly commercial transportation.
Activities for the joint venture are expected to commence in the fourth quarter of 2019 and continue for a number of years as the program expands throughout China.