China Petroleum & Chemical Corporation (HKG: 0386) (Sinopec) has engaged in a green hydrogen project to help China’s transition away from fossil fuels.
The company announced on Monday that the pilot project started operations in Kuqa City of Aksu Prefecture, Xinjiang Uygur Autonomous Region.
Green hydrogen is created using renewable energy sources like solar and wind power, which significantly reduces carbon emissions during production. The project harnesses solar resources in Kuqa to generate 20,000 tons of green hydrogen annually through solar-powered water electrolysis. It also has the capacity to store 210,000 cubic meters of hydrogen and transport 28,000 cubic meters per hour.
The demonstration project aims to establish a new approach for refining green hydrogen and set a model for green hydrogen production in China. It supplies hydrogen to Sinopec’s Tahe Refining & Chemical, replacing the use of fossil fuel-based electricity for hydrogen production. This switch is anticipated to reduce Tahe Refining & Chemical’s carbon dioxide emissions by approximately 485,000 tons per year.
Sinopec is focused on hydrogen-powered transportation and refining green hydrogen. The company’s goal is to become a leading force in new energy and drive hydrogen production innovation in China. This will help China and other regions achieve their low-carbon targets in the coming years.
Sinopec has already started operating a megawatt-scale PEM electrolysis hydrogen production station with an annual capacity of over 4.5 million tons. The company also launched their first hydrogen demonstration project in Inner Mongolia, expected to produce 30,000 metric tons of hydrogen annually starting in 2023.
Green hydrogen represents significant opportunities
Green hydrogen has the potential to replace fossil fuels in industries and help transition towards a more sustainable energy system. These factors, along with government support and investments, contribute to the growth and importance of the hydrogen market.
According to a report from Grand View Research, the global green hydrogen market size was valued at USD3.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 39.5 per cent from 2022 to 2030.
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