Sinopec Launches the World's Largest Green Hydrogen-Coal Chemical Project in Inner Mongolia

BEIJING, HOHHOT and ORDOS, China, Feb. 22, 2023 /PRNewswire/ — China Petroleum & Chemical Corporation (HKG: 0386, “Sinopec”) held launching ceremonies of its first hydrogen demonstration project in the Inner Mongolia Autonomous Region, the Inner Mongolia Erdos Wind-Solar Green Hydrogen Project (the “Project”), on February 16 in Beijing, Hohhot and Erdos.

The Project will utilize the rich solar and wind energy resources in the Erdos region to produce green hydrogen directly, projecting to reach an annual production capacity of 30,000 tons of green hydrogen and 240,000 tons of green oxygen, which will be used for the carbon reduction initiatives of the adjacent ZTHC Energy intensive coal processing pilot project in Erdos.

A milestone in Sinopec’s hydrogen development roadmap following its green hydrogen pilot project in Kuqa Xinjiang in 2021, the Project, the world’s largest in the green hydrogen coal-chemical field, will further expand China’s and global green hydrogen production capacity, promote the development of the green hydrogen industry chain and advance China’s green energy goals.

The Project’s scope covers wind and photovoltaic power generation, power transmission and transformation, hydrogen production by water electrolysis, hydrogen storage and transport. The installed power-generating capacity of wind and PV power will reach 450 megawatts and 270 megawatts 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.

With a 5.7-billion-yuan (USD 828.04 million) investment, the project is estimated to reduce carbon emission by 1.43 million tons annually, contributing 600 million yuan (USD 87.17 million) in GDP and 30 million yuan (USD 4.36 million) of tax.

“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,” said Ma Yongsheng, Chairman of Sinopec.

The Project has achieved numerous technological breakthroughs including hydrogen production under renewable fluctuating power conditions. Leveraging advanced clean energy production technologies (wind, power, and hydrogen production by water electrolysis), Sinopec has lowered hydrogen production costs and improved system efficiency while guaranteeing safety and reliability.

Looking ahead, Sinopec, as China’s largest hydrogen production enterprise, will continue advancing hydrogen energy industry chain development in China with the R&D of innovative technologies, a forward-looking roadmap and comprehensive industry layout.