With a projected annual output of 120,000 tonnes of green hydrogen, China’s latest industrial filing in Bayannur signals the country’s deepening commitment to large-scale hydrogen infrastructure despite global headwinds.
The 5.65 billion yuan ($780 million) Phase I development, backed by Guomeng Hydrogen Energy Technology (Bayannur) Co., Ltd., represents one of the most ambitious renewable hydrogen undertakings currently on record in the Inner Mongolia Autonomous Region.
Approved by the National Development and Reform Commission (NDRC), the project will be situated in the Ganjimaodu Port Processing Park in Urad Middle Banner. Scheduled to begin construction in August 2025 and conclude by February 2027, the initiative aims to establish a renewable hydrogen production, storage, and transport base capable of generating 240,000 Nm³/h—equivalent to 120,000 tonnes of hydrogen annually—and storing up to 300 tonnes on-site.
This scale reflects China’s strategic push to localize and integrate hydrogen as a core energy vector for hard-to-decarbonize sectors. The project’s configuration includes a 270,000 m² construction footprint across 580 mu (approx. 39 hectares), encompassing core infrastructure such as an electrolytic hydrogen plant, purification and compression systems, and auxiliary systems like water treatment and nitrogen generation stations. Notably, Guomeng plans to implement pressurized water electrolysis, a proven method that aligns with China’s focus on renewables-based hydrogen over fossil-based “blue” hydrogen alternatives.
From a financing perspective, the project relies heavily on credit, with 4.52 billion yuan in bank loans supplementing 1.13 billion yuan in equity investment. The absence of external funding sources suggests a clear alignment with domestic industrial policy and risk appetite, particularly as global green hydrogen projects continue to face investor caution amid escalating electrolyzer costs and limited offtake agreements.
Despite the massive proposed output, a critical piece of the equation remains unaddressed: downstream demand. While the project’s technical parameters and infrastructure are well-defined, market integration—specifically hydrogen buyers, industrial users, or export pathways—has yet to be disclosed. This reflects a broader pattern in China’s hydrogen roadmap, where infrastructure often precedes market certainty, banking on eventual demand scaling in sectors such as steel, fertilizers, and transport.
The NDRC’s approval also comes with caveats. If there is no construction activity within two years, or if the scope, investment, or ownership undergo significant changes, the project risks being delisted. Additionally, project developers are required to undergo energy efficiency reviews and must report ongoing construction milestones through official channels—indicating increased regulatory oversight compared to earlier waves of hydrogen pilot projects.
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