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Why does Hungary attract Chinese new energy enterprises?


Dongfang Risheng announced that it would provide 480mw high-efficiency components for European customers EXOR, solarpro and polsolar to help customers build green projects. Dongfang Risheng's partner this time is Hungarian oil and gas group, one of the national pillar enterprises in Hungary. In the future, the two sides will further deepen the partnership and explore more possibilities for cooperation in new energy projects.


Hungary is the top 10 photovoltaic market in Europe. Hungarian oil & Gas Group, which cooperates with Dongfang Risheng this time, is the second largest company in central and Eastern Europe. It is mainly engaged in petroleum and gasoline exploration, production, refining, marketing and petrochemical products. Its business covers Europe, the Middle East, Africa and the CIS.


Due to the lack of domestic energy resources, Hungary began planning to expand the application of new energy very early. In 2011, Hungary formulated long-term energy strategy documents to 2030 and 2050 respectively, with the main purpose of ensuring supply security, economic competitiveness and environmental protection at the same time. Since then, Hungary has signed the Paris climate agreement, which emphasizes "green growth" and strongly encourages and supports the use of new energy from the aspects of residents' lives, enterprise production and transportation. At the same time, it also decided to support investment in new energy through the Hungarian Investment Promotion Agency.


In april2017, the first electric vehicle factory invested and built by BYD, a Chinese new energy vehicle manufacturer, in Europe, officially settled in komarom, northwest Hungary. Its early products are mainly pure electric buses and pure electric tourist buses. Later, it will produce electric forklifts and other light commercial vehicles. At present, the production scale of BYD Hungary is expanding.


In September, 2021, China Enjie Group invested in the construction of lithium battery diaphragm production base in Debrecen. The investment amount of this project is 183million euros. It is planned to build a 50000 square meter production base in the plant area of 97000 square meters, with four lithium battery diaphragm production lines, providing 440 local jobs. In March, 2022, China Yiwei lithium energy purchased a 45 hectare land in Debrecen and planned to build a battery production plant. At present, follow-up negotiations are still in progress.


It can be noted that China's new energy enterprises mostly prefer Debrecen for investment. This is because the Hungarian government emphasizes the development of the eastern region with relatively weak development level. Debrecen, as an important city in eastern Hungary, the central government and the local government provide more convenient conditions for investment there. The Hungarian government, through the Investment Promotion Bureau, will provide certain subsidies to investment enterprises according to the investment region, projects involved and the employment population.


Hungary is currently promoting the electrification of the transportation sector, and the infrastructure of charging stations is also expanding rapidly. From 2015 to 2020, the number of charging stations in the country increased from 180 to 1295, and the number of fast charging piles increased from 22 to 287. The expansion of charging infrastructure is also promoted by laws and regulations. For example, new residential buildings and shopping centers must provide reserved parking spaces with charging interfaces.


On June 8, the European Parliament voted to pass the legislative proposal put forward in July 2021, that is, to prohibit the sale of fuel vehicles in the EU by 2035, marking the acceleration of the process of vehicle electrification in Europe. However, before this legislative proposal comes into force, the European Parliament still needs to negotiate with EU Member States. At the end of June, EU Member States hoped to clarify their position on banning the sale of gasoline and diesel vehicles. At present, Germany and other countries have signed the prohibition on the sale of fuel vehicles in 2035. Many automobile manufacturers have realized this change and turned to electric vehicles. According to the data of the European Automobile Manufacturers Association, although the total automobile sales decreased in 2022 due to the shortage of semiconductors, electric vehicles and plug-in hybrid vehicles accounted for about 18% of the new car sales in the EU last year.


The wave of electrification is advancing rapidly all over the world. On June 7, Bloomberg said that according to Bloomberg's latest "future outlook for electric vehicles in 2022" report, by 2025, electric vehicles in China and Europe will account for 39% of their total automobile market share. In some European countries, the proportion will be even higher. For example, electric vehicles in Germany, Britain and France will account for about 40%-50% of that country.


The report also said that the global electric vehicle market is still dominated by China. In terms of the number of charging piles, China has the largest number, followed by Europe, followed by the United States.


Source: Netease / Global Times


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