Construction on the largest integrated green hydrogen generation project in the world, which will be used at a neighboring coal chemical plant, began on Thursday, according to the project’s owner China Petrochemical Corp.

The project will harness the region’s plentiful solar and wind resources to produce 30,000 tons of green hydrogen annually, which will be used in the neighboring coal processing demonstration project in the city of Ordos to further cut carbon emissions.

The corporation, also known as Sinopec, is slated to rule the nation’s hydrogen market this year with a number of projects, ranging from upstream production to equipment manufacturing, scheduled to be finished or begin construction. Sinopec is Asia’s largest refiner by volume.

In order to become the largest hydrogen company in China, it will significantly increase its green hydrogen production capacity and broaden its statewide refueling network.

In the Kuqa, Xinjiang Uygur autonomous region, Sinopec began work on a 3-billion-yuan ($434 million) green hydrogen plant with a 20,000-ton annual output capacity. Moreover, a network of hydrogen pipelines and storage tanks will be constructed. The project is scheduled to begin operations in 2023, and Sinopec’s Tahe refinery will use the hydrogen it produces to replace its current gas-to-hydrogen facilities.

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