China Petroleum and Chemical Corporation Sinopec launched its first green hydrogen demonstration project with an investment of ¥5.7 billion (~$828 million) in the Inner Mongolia Autonomous Region recently.

The project named “Inner Mongolia Erdos wind-solar green hydrogen project” is estimated to reduce carbon emissions by 1.43 million tons annually and contribute ¥600 million (~$87.17 million) to Gross Domestic Product.

The scope covers wind and photovoltaic power generation, power transmission and transformation, hydrogen production by water electrolysis, hydrogen storage, and transport.

The installed generating capacity of wind and solar power will reach 450 MW and 270 MW respectively. The hydrogen production by water electrolysis will achieve a capacity of 30,000 tons annually, and the hydrogen storage capacity will reach 288,000 standard cubic meters.

The produced green hydrogen will be utilized for carbon reduction initiatives for the adjacent ZTHC Energy intensive coal processing pilot project in Erdos.

Ma Yongsheng, Chairman of Sinopec, said, “The project is of great significance to guaranteeing China’s energy security, building new energy systems, and advancing green energy and low-carbon development in Inner Mongolia, leading towards a new, high-quality development roadmap that prioritizes ecological conservation and green development”.

The company claimed the project is the world’s largest in the green hydrogen coal-chemical field and will expand China’s global green hydrogen production capacity, promote the development of the green hydrogen industry chain and advance China’s green energy goals.

The project follows Sinopec’s hydrogen development roadmap after its green hydrogen pilot project in Kuqa Xinjiang in 2021.

The company said it would continue advancing hydrogen energy industry chain development in China with innovative technologies.

Recently, solar module maker JA Solar signed a strategic cooperation framework agreement with the Ordos municipal government in China’s Inner Mongolia to build a low-carbon industrial park for the photovoltaic industry cluster.

China’s annual export of solar photovoltaic products such as polysilicon wafers, cells, and modules, surpassed $51 billion in 2022, a year-over-year increase of 80.3%. China’s export performance is noteworthy as it has come despite the import barriers erected by several countries to restrict the entry of Chinese products last year.