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Sinopec [0386:HK], China’s state-owned oil and gas company, has started producing green hydrogen at a plant in Kuqa, Xinjiang Uygur Autonomous Region in Northwest China, as reported by Reuters on June 30. This plant is China’s first photovoltaic green hydrogen project with an annual capacity of over 10,000 tons. By utilizing solar power to electrolyze water, the plant produces hydrogen with minimal greenhouse gas emissions. Sinopec stated that the facility has the potential to produce 20,000 tons of green hydrogen per year, with a transmission capacity of 28,000 cubic meters per hour. The hydrogen produced at this plant will be supplied to Sinopec’s Tahe refinery to replace hydrogen derived from natural gas, commonly known as blue hydrogen.
In 2020, China became the world’s largest hydrogen producer, with a whole-year output of 33 million tons, accounting for 30% of the world’s total. However, about two-thirds of this hydrogen was produced using coal-fired power, generating about 360 million tons of carbon dioxide (CO2) emissions. Blue accounted for roughly 19% of the total output, while green hydrogen only contributed 1% due to its higher production costs. To increase the share of green hydrogen, Sinopec aims to gradually transition its hydrogen production facilities from fossil fuel to renewable energy. This aligns with China’s target of achieving an annual output of green hydrogen between 100,000 and 200,000 tons by 2025. In addition, Sinopec has commenced the construction of China’s first long-distance hydrogen pipeline from Ulanqab in Inner Mongolia to Beijing, which is expected to reduce the transport cost and promote the utilization of green hydrogen.
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