Production Begins at Sinopec's Initial Green Hydrogen Plant in Xinjiang

BEIJING: Chinese energy company Sinopec announced on Friday that it has inaugurated its premier green Hydrogen plant in the western Xinjiang region, marking the beginning of its clean fuel production. The facility, which uses solar power to electrolyze water, has a capacity to generate 20,000 metric tons of Hydrogen per year, according to the statement released by the firm.

Sinopec has unveiled China's biggest green Hydrogen plant in Kuqa city, located in Xinjiang, with an annual capacity exceeding 10,000 metric tons. The facility is powered by solar energy and has been established as the leading clean fuel generator in the country, according to the company's announcement.

Several nations, including China, are competing to create green Hydrogen as a vital source of Carbon-free fuel through the process of splitting water into Hydrogen and Oxygen using renewable energy. The aim is to counteract climate change caused by carbon emissions. In 2020, China's state planner revealed its objective to generate 100,000 to 200,000 metric tons of green Hydrogen annually by 2025.

Sinopec has disclosed that its facility, which can produce Hydrogen, has a Hydrogen storage capacity of 210,000 cubic metres and a transmission capacity of 28,000 cubic metres per hour. The Hydrogen produced will be used to replace the Hydrogen derived from natural gas at Sinopec's Tahe refinery.

Construction on Sinopec's new plant commenced in November 2021, and the initial investment amounted to approximately 3 billion yuan ($414 million). Earlier this year, the company also initiated a 30,000 metric ton green Hydrogen demonstration project in Inner Mongolia. Additionally, Sinopec revealed plans to construct a 400 km pipeline from Inner Mongolia to Beijing to facilitate Hydrogen transportation.

In July 1998, China Petrochemical Corporation was established because of the government's strategic restructuring of the petroleum and petrochemical industry. In August 2018, the company was transformed into a limited liability corporation with a registered capital of 326.5 billion yuan. The chairman of the board of Sinopec Group serves as the legal representative of the company.

This super large petroleum and petrochemical group exercises investor's rights to state assets owned by its subsidiaries and controlled companies and is responsible for maintaining and increasing their value in accordance with applicable laws. The company is headquartered in Beijing and makes major decisions while receiving returns on assets.

The Company's main areas of operation comprise industrial investment and management, petroleum and natural gas exploration and production, storage, and transportation (including pipeline transportation), comprehensive utilization, coal production, sales, storage, and transportation. They are also involved in oil refining, storage, transportation, wholesale, and retail trading of oil products, as well as production, sales, storage, and transportation of various chemical products such as petrochemical products, gas-based chemicals, coal chemical products, and other similar items.

The company is also engaged in new energy product production, sales, storage, transportation, and battery charging or swapping services for electric vehicles and related services. Additionally, they offer design, consulting, construction, installation services for petroleum and petrochemical engineering projects and undertake the overhaul and maintenance of petroleum and petrochemical equipment.

They also conduct research and development, manufacturing, and sales of electrical and mechanical equipment, as well as production and sale of electricity, steam, water, and industrial gas. The Company provides research, development, application, and consulting services for technology, e-commerce, information, and alternative energy products. Moreover, the company engages in import & export activities, including import and export agency business of self-support products and commodities and technologies, foreign project contracting, bidding, and purchasing, and international storage and logistics business.