Sinopec, China’s state-controlled oil behemoth, aims to build its first green hydrogen project in the Inner Mongolia region in 2022.
The company, which is China’s largest hydrogen producer, recently announced a five-year focus on fossil fuel-based hydrogen production and the establishment of 1,000 hydrogen filling stations across the country as part of its goal of becoming carbon neutral by 2050.
Sinopec now has an annual hydrogen production capacity of 3.5 million tonnes, primarily from grey hydrogen produced as a byproduct of its refineries. This capacity accounts for around 14% of overall hydrogen production in China.
The green hydrogen facility, which will be located near Ordos, is expected to have an annual production capacity of 20,000 tonnes and a total investment of around $405 million. The first phase will produce 10,000 tonnes of hydrogen, with a 270 MW solar power plant and a 50 MW wind farm providing support.
The plant’s green hydrogen will be used to fuel a coal chemical project being developed by Zhong Tian He Chuang Corp, a joint venture between China Coal Energy, Sinopec, Shenergy, and Inner Mongolia Manshi Group. Sinopec is also aiming to create a 20,000-tonne-per-year green hydrogen facility in Kuqa, Xinjiang, China, fueled by a 1,000-megawatt solar power plant.
