Chongqing - "Chongqing takes a practical approach in supporting both traditional and emerging industries," said Nathan Stoner, Cummins Vice President and Chairman of Cummins China, in an exclusive interview with Bridging News on September 26. "Cummins is committed to aligning with the city's government policies to drive growth in automotive and energy storage sectors."

Nathan Stoner, Cummins Vice President and Chairman of Cummins China. (Photo/ Kenny Dong)

Chongqing held the 18th Meeting of the Chongqing Mayor's International Economic Advisory Council (CMIA) from September 26 to 27, featuring Nathan Stoner as an advisor. Cummins is recognized as a global leader in power solutions.

Driving demand for hydrogen will attract investment

During the interview, Stoner identified three key suggestions for Chongqing's development. First, he emphasized the importance of supporting continuous innovation in existing industries while creating a conducive environment for new industries. 

He cited the need to invest in advanced digital tools that can be applied across different industries to enhance operational efficiency.

Secondly, he emphasized the importance of building a strong industrial and value chain for emerging sectors, using hydrogen as an example. Developing Chongqing's hydrogen economy requires solid infrastructure and a focus on driving demand.

"Creating demand for hydrogen applications will attract more investment, establishing a complete and efficient hydrogen industry chain," Stoner remarked.

Lastly, he advocated utilizing existing facilities and tools to foster cross-industry learning and collaboration. "We aim to break down industry barriers and encourage different sectors to learn from each other," said Stoner.

Reflecting on his conversation with the mayor of Chongqing, Stoner commended the city's pragmatic approach to balancing support for both established and emerging industries. 

"Our industry isn't just about diesel or batteries; there are many opportunities in between," he explained. He referred to this evolving landscape as the "messy middle," where both legacy and new technologies can coexist and thrive.

Center investments on local hydrogen demand strategies

The hydrogen economy is another area where Cummins is focusing its efforts. 

The China Hydrogen Industry Development Report 2020 predicts that in 2050, hydrogen will make up 10% of China's energy consumption, with 30 million hydrogen fuel cell vehicles and a demand of 60 million tons. 

In response, Chongqing plans to advance the development of hydrogen production, storage, transportation, and refueling infrastructure. With abundant natural gas and shale gas resources, Chongqing has a strong foundation for the hydrogen energy industry.

While vehicle fuel cells often get the spotlight, Stoner highlighted hydrogen's more comprehensive applications across multiple industries. Cummins' investment strategy will center on understanding how local governments and industries plan to drive hydrogen demand, which will guide their investments accordingly.

Cummins' history in China dates back nearly 50 years, with its roots in Chongqing beginning in 1981 through a partnership with China National Heavy Duty Truck Group Co., Ltd. (CNHTC). 

Over the years, Chongqing has become a vital hub for Cummins. It is supported by large manufacturers that attract investment from companies of all sizes, creating an efficient ecosystem. This has allowed Cummins to build a strong presence, benefiting from the city's infrastructure and skilled workforce.

Stoner noted that Cummins' Chongqing facility has expanded beyond the Chinese market, becoming a global research and manufacturing base over the past five to six years. Annual investments exceed 100 million yuan (about USD 14.3 million). It now addresses various international needs by adapting engines for high-altitude mining and marine applications.