BEIJING (Reuters) – Chinese state-controlled oil giant Sinopec said it expects to launch its first green hydrogen project, a zero-carbon fuel generated from renewable energy sources, in the Inner Mongolia region in 2022.
The company, China’s largest hydrogen producer, also said it will focus on fossil fuel-based hydrogen output over the next five years and set up 1,000 hydrogen filling stations across the country, as part of its goal to be carbon neutral by 2050.
Sinopec currently owns an annual hydrogen production capacity of 3.5 million tonnes, mainly grey hydrogen as a byproduct from its refineries, accounting for about 14% of total hydrogen output in China.
Located in Ordos, the green hydrogen plant is designed to have annual production capacity of 20,000 tonnes, with a total investment of 2.6 billion yuan ($405.58 million).
The first phase will involve 10,000 tonnes hydrogen output, supported by a 270 megawatts (MW) solar power station and a 50 MW wind farm.
The green hydrogen produced from the plant will be supplied to a coal chemical project run by Zhong Tian He Chuang Corp, a joint venture set up by China Coal Energy Co, Sinopec, Shenergy and Inner Mongolia Manshi Group.
Sinopec is also planning to build a 20,000 tonnes per year green hydrogen plant in Kuqa city in China’s northwestern region Xinjiang, powered by a 1,000 MW solar power station.
($1 = 6.4106 Chinese yuan)
(Reporting by Muyu Xu and Shivani Singh; editing by Uttaresh.V)