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Sinopec invests £2.35 billion in green hydrogen in Inner Mongolia

Author : PCEC

08 December 2022

Sinopec is advancing plans to build a large-scale green hydrogen project in Inner Mongolia, which will help Sinopec become China's largest hydrogen energy company. Sinopec will invest 20 billion yuan (£2.35 billion) in the project in Ulanqab, Inner Mongolia.

Hydrogen fueling station in Chongli – Image: Sinopec
Hydrogen fueling station in Chongli – Image: Sinopec

The project includes onshore wind power and a hydrogen pipeline. The 400-kilometre hydrogen pipeline will connect Ulanqab's green hydrogen production plant and Sinopec's Yanshan Petrochemical plant in Beijing. The pipeline is planned to transport 100,000 tons of hydrogen per year.

As early as September this year, Sinopec stated its development goal of establishing China's first hydrogen energy company. It has since completed the 100,000 tons/year green hydrogen production plant in Ulan Chabu.

Upon completion, the Ulanqab hydrogen pipeline will become the largest of its kind in China. Its construction will be undertaken by Sinopec Oilfield Services Co. which will also conduct corresponding work in terms of pipeline engineering, equipment selection, pipeline material selection, suitability for different levels of area division, safety distance setting, and operation and maintenance stage management.

Ma Yongsheng, Chairman of Sinopec, said that in the process of transitioning to a low-carbon business structure, the company will give priority to the development of renewable energy projects, especially those involving hydrogen energy. Sinopec will increase investment in research and development of hydrogen energy technology and plans to launch several green hydrogen energy pilot projects as part of its mission to achieve carbon emission peaking by 2030 and carbon neutrality by 2050, ahead of China's national 2060 target.

By 2025, Sinopec aims to supply 1 million tons of green hydrogen accumulatively, and its green hydrogen production capacity is planned to reach 500,000 tons per year in the same year, compared with the current output of "gray" hydrogen made from fossil fuels at 3.9 million tons.

This year, Sinopec's green hydrogen project has achieved some progress. Sinopec recently commissioned a PEM electrolyzer at its Zhongyuan oil field in Henan province. Sinopec said the project will produce 1.12 tons of green hydrogen with a purity of 99.9995% per day. In addition, all 52 sets of electrolyzers for the Sinopec Kuqa project have been installed and will achieve a green hydrogen production capacity of 20,000 tons per year.

Sinopec and China Three Gorges Investment Group will also cooperate with the Shanghai Municipal Government to launch a 3 billion yuan hydrogen energy project in Qingpu District of Shanghai, including the construction of 10 hydrogen refueling stations. Sinopec and Three Gorges Investment Group have also launched a similar cooperation project in Yunnan.

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