Global leader in fuel cell technology opens its most advanced factory at Dube TradePort

CHEM ENERGY SA, a subsidiary of Taiwanese conglomerate Chung-Hsin Electric and Machinery Manufacturing Corp (CHEM), was officially opened at the Dube TradePort Special Economic Zone today (Friday September 4), by KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs Ms. Nomusa Dube-Ncube and members of the Economic and Infrastructure Executive Cluster.

Accompanying MEC Dube-Ncube in the closed visit was Mr. Ravi Pillay MEC Finance; Ms. Peggy Inkonyeni MEC Public Works; Mr. Bheki Ntuli MEC Transport, Safety and Security and Mr. Sipho Hlomuka MEC COGTA.

The state-of-the-art factory is the most advanced fuel cell factory of its kind in the world, and will produce CHEMs latest product, the G5 fuel cell system with full local support.

CHEM, a world leader in methanol fuel cells for telecoms, has spent over 20 years and invested well over $200 million refining its technology. It currently has some 300 patents awarded and pending.

Fuel cells are energy-conversion devices that can efficiently capture and use the energy-carrying capacity of hydrogen to power nearly every end-use energy need. Energy uses include portable devices, vehicles and stationary power stations such as those used for the telecommunications industry.

“This represents a milestone accomplishment for foreign investment and we are excited to team up with CHEM and industry to help rapidly expand the adoption of this important technology,” said MEC Ncube-Dube.

“Fuel cells are a rapidly emerging technology for reliable power generation in challenging situations. Using fuel cells and fuel made in South Africa, by South Africans, the country can ensure reliable telecom communication networks and power to everyone, anywhere, anytime,” said CHEM Energy SA President, Mr. Angelin Maharaj.

“Our factory at Dube TradePort is ideally situated for import and export throughout Africa from Durban’s large seaport, this facility will also provide key local support to CHEM’s customers which include Vodacom in South Africa with 300 of these systems. Overall we have 3 000 of these fuel cells deployed around the world with leading and demanding telecom customers.

“Fuel cells require hydrogen to operate, but hydrogen is difficult to obtain and store, so we’ve perfected a technology that produces hydrogen on demand from a mix of methanol and water (the stuff in your windshield washer fluid).  We’ve integrated these technologies into a robust DC generator specifically designed for the telecom application.

“In areas with weak or no grid, it tends to be a strong alternative to diesel generators, lowering the total cost of ownership, increasing uptime and reducing theft and vandalism. CHEM’s fuel cell generators are nearly solid state, with very few moving parts to wear out or fail, and they have extensive remote control and monitoring capability, making them ideal for distant sites,” he said.

“Having a fuel cell manufacturer within Dube TradePort opens the way to create a new supply chain in the country that services high-tech manufacturing,” said Hamish Erskine, Chief Executive at Dube TradePort Special Economic Zone.

“The beneficiation of minerals such as platinum and platinum alloys has been identified in the SA Industrial Policy Action Plan 2018. South Africa is the world's largest producer of platinum and platinum alloys which are the most efficient catalysts for speeding up chemical reactions in hydrogen fuel cells. Developing a fuel cell industry will not only boost energy efficiency but it will help reduce carbon emissions and greenhouse gases.

“The potential widespread application of fuel cell technology will undoubtedly power the next wave of development from telecommunications to the automotive sector. We are proud to have CHEM Energy located within our precinct,” said Erskine.