China building world’s biggest green hydrogen factory

China’s Sinopec is building the world’s biggest factory for the production of hydrogen from renewable sources. The facility, which will be powered by a 300 MW photovoltaic plant, is expected to be put into operation in June 2023.

Sinopec (China Petroleum & Chemical Corporation) plans to produce 20,000 tons of green hydrogen a year once the facility is completed, while the expected reduction of CO2 emissions is about 485,000 tons a year.

The cost of hydrogen production will be only USD 2.67 per kilogram

The plant, located in the northwestern region of Xinjiang, will cost about USD 470.8 million to build, with solar panels covering an area of over 630 hectares. The cost of hydrogen production there will be only USD 2.67 per kilogram, according to Chinese media reports.

The state-owned energy giant announced earlier that the project would cover the whole process of green hydrogen production and utilization, from solar power generation, transformation, electrolytic production, storage, and transportation.

The facility will include the 300 MW solar power plant, a water electrolysis hydrogen production plant, hydrogen storage tanks, and a hydrogen pipeline, according to earlier reports.

The green hydrogen will replace natural gas-based hydrogen used at Sinopec’s Tahe oil refinery

The hydrogen produced at the future plant will be supplied to the neighboring Sinopec Tahe oil refinery to replace natural-gas based hydrogen.

Sinopec estimates that in the future, the whole petroleum industry will create a market worth more than USD 14.8 billion by replacing gray hydrogen, which is produced using electricity generated from fossil fuels, with green hydrogen.