Bloomberg News--Tengda Construction Group Co., which builds municipal infrastructure projects in China, plans to form a 10 billion yuan ($1.5 billion) hydrogen industry fund to finance fuel cells and vehicles powered by the gas.
The Taizhou, Zhejiang-based company agreed to partner with Chang’An International Trust Co., Oriental Patron Financial Group and Bestone Asset Management Co. for the fund, it said in a statement to the Shanghai stock exchange on Tuesday.
The fund will invest in technologies to purify and store hydrogen, Tengda said.
President Xi Jinping’s administration wants 5 million “new-energy vehicles” -- either fully electric or hybrids -- hitting roads by 2020 to cut emissions and to reduce the reliance on imported oil.
Central and local governments have spent 15 billion yuan subsidizing new-energy vehicle makers since 2009, according to state-run China Central Television.
— With assistance by Feifei Shen