BINHAI INV (02886) borrows strength from Sinopec to layout the second spring of green hydrogen transformation.

BINHAI INV (02886) announced earlier that its wholly-owned subsidiary, Bintou Tianjin, has signed a five-year "Green Hydrogen Supply Framework Agreement" with Sinopec's Sinopec New Energy Company. As Sinopec is the second largest shareholder of BINHAI INV, holding approximately 29.67% of shares, this cooperation is not only part of business development but also has strategic synergies at the shareholder level, indicating a clear positioning that goes beyond a typical supply agreement. It focuses on the medium to long-term deployment of the hydrogen energy industry within the Sinopec group. The project will be implemented in phases. In the initial stage (2026 to 2028), the two parties will conduct green hydrogen blending demonstration tests in the natural gas pipeline network in Tianjin to gradually verify the technology, safety, and operational standards, laying the foundation for future commercialization. At the same time, the second phase will involve advancing infrastructure connection projects, including the integration of the Ulanqab 100,000 tons/year wind-generated hydrogen project in Inner Mongolia with the pure hydrogen long-distance pipeline in the Beijing-Tianjin-Hebei region, allowing for hydrogen blending into multiple core natural gas networks under Bintou Tianjin. The goal is to have actual conditions for receiving green hydrogen by the end of 2028. In other words, the demonstration tests and infrastructure integration will progress simultaneously to prepare for the formal supply in the third step. The specific commercial supply arrangements are expected to be implemented from 2029 onwards. According to the framework agreement, Sinopec New Energy Company will stably supply green hydrogen to Bintou Tianjin, with an initial annual supply volume expected to be around 20,000 to 30,000 tons, offering the most favorable conditions at a price range of RMB 19 to 22 per kilogram currently. By estimating using the median values, with an annual supply of 25,000 tons at RMB 20 per kilogram, the annual transaction scale is expected to be around RMB 500 million, with potential for further expansion as the blending ratio increases. Although the final supply volume and pricing mechanism will be determined annually through contracts, considering the potential market size, it represents a significant long-term business opportunity. In addition to supply cooperation, both parties will expand the application of hydrogen energy in various scenarios, such as power generation, metallurgy, transportation, hydrogen liquefaction, and hydrogen refueling stations, and explore joint construction projects, including pure hydrogen pipelines and the transformation of existing natural gas pipelines, indicating the expansion of cooperation to cover the entire hydrogen energy industry chain. This signifies that BINHAI INV is not only involved in green hydrogen transmission and distribution but also has the opportunity to further enter downstream applications and related investment projects. In this cooperation, the role of BINHAI INV is the receiver and distributor of green hydrogen, rather than bearing the upstream production risk. The strategic significance of the agreement is more significant than short-term profit incentives. Firstly, the group can leverage Sinopec's technological and resource advantages in the hydrogen energy sector to pioneer the demonstration application of "green hydrogen + natural gas" in Tianjin, seizing the policy and market opportunities. Secondly, existing natural gas pipeline assets will gradually be upgraded to support the comprehensive energy infrastructure that can carry green hydrogen, enhancing asset strategic value and long-term operational efficiency. Most importantly, with the formal establishment of green hydrogen supply and the expansion of application scenarios, the group is expected to embark on the "third growth curve," gradually transforming from a traditional urban gas operator to a comprehensive energy platform covering natural gas and hydrogen energy. Although the cash flow contribution from this cooperation will not be realized until 2029 at the earliest, if the project progresses as planned and aligns with the national "dual carbon" policy and the direction of hydrogen energy industry development in the Beijing-Tianjin-Hebei region, BINHAI INV's long-term growth positioning and valuation logic may present an opportunity for re-pricing. Additionally, BINHAI INV's performance in the first quarter is impressive, with a total gas sales volume of approximately 794 million cubic meters, representing a year-on-year growth of around 21%. Among these, pipeline gas sales volume is approximately 585 million cubic meters, with a year-on-year growth of around 23%, and industrial and commercial users' gas sales volume is approximately 439 million cubic meters, with a year-on-year growth of around 31%; pipeline natural gas transportation volume is around 209 million cubic meters, showing a year-on-year growth of approximately 15%. This indicates that its customer base is expanding, laying a solid foundation for the development of its green hydrogen business and making it a promising long-term investment. This article was originally published by "," authored by Peng Weixin; GMTEight Editor: Jiang Yuanhua.