China finds the only energy it wasn’t leading: $1.5 billion and an extremely large mine

October 21, 2024

China is taking a big step in the direction of green energy with an innovative hydrogen project. Hydrogen energy hadn’t been a focus for the Chinese until now, but they’re on their way to catching up by building a $1.5 billion integrated wind and solar hydrogen facility in Xinjiang.

Wind and solar meet to create hydrogen

The revolutionary concept involves producing 40,000 tons of hydrogen a year to fuel 600 trucks and contribute to the grid. Both solar and wind power will be utilized at the same 200 MW plant to produce around 40,000 tons of green hydrogen per year, which will be utilized primarily to fuel trucks via six filling stations and to provide backup for the grid.

The autonomous area of Xinjiang is ideal for renewable energy generation due to its vast natural resources and has, in fact, been subjected to energy curtailment of up to 29% a year due to excess production.

The project, led by Grove Hydrogen Energy Technology Group, is called the Grove Mulei Hydrogen Energy Storage Peak Shaving Power Station and Integrated Wind, Solar, Hydrogen, and Vehicle Storage Project. The electrolyzer capacity required for such an operation has been a point of interest for professionals in the field, and they surmise that it must be at least 400 MW to meet a production target of 40,000 tons of hydrogen a year.

Grove Hydrogen Energy Technology Group has a subsidiary brand called Zhongji that manufactures 49-ton hydrogen-powered trucks with a 310-mile range and an H2-powered sportscar model. To service this fleet, each filling station will have a daily capacity of 500 tons.

Hydrogen storage and backup power

The Grove Mulei project incorporates a state-of-the-art 1,600-MWh hydrogen-powered peaker plant as a backup to the local electricity grid. 200 MW of power will be available for up to eight hours in the event that solar and wind energy production drops.

Grove chairman Hao Yiguo expressed his confidence in the Grove Mulei project:

“This project is currently the largest single-planned hydrogen energy storage project both domestically and internationally. Once completed, it will not only produce hydrogen but also generate significant economic returns while positioning Mulei as a leading hub for hydrogen energy storage.”

China’s solar-wind hydrogen plant in context

The Grove Mulei plant is set to smash China’s hydrogen targets and solidify the country in the international electrolyzer market after lagging somewhat in the global hydrogen energy industry. China’s national low-carbon energy transition strategy highlights hydrogen as a vital element and the Asian nation is committed to meeting its targets.

In 2023, mainland China’s electrolyzer capacity was at a total of 1 GW, making it one of the world leaders in electrolyzer technology. But until now, China has been producing “grey” hydrogen through steam methane reforming or coal gasification, which must be replaced by low-carbon hydrogen methods if the country wants to achieve its emissions objectives by 2035.

China’s National Development and Reform Commission initiated the Medium and Long-Term Strategy for the Development of the Hydrogen Energy Industry plan in 2022, and so far, the country is meeting its goals.

More hydrogen opportunities in China

China has several large-scale projects and strategies to develop hydrogen infrastructure and supply power to areas previously underserviced.

  • The Sinopec pipeline: A 250-mile hydrogen pipeline will connect Inner Mongolia to Beijing, the country’s first long-distance system.
  • Another 455-mile pipeline is being installed from Zhangjiakou to Caofeidian on the coast. When complete, it will be the longest hydrogen conduit in the world.
  • Solar and wind energy potential in the north and northwest regions of Gansu, Inner Mongolia, and Xinjiang is being optimized, and in 2023 alone, 217 GW of electricity was added to the grid.

All eyes are on China as a rising star in the hydrogen production and hydrogen energy industries, and at this rate, the country will catch up to competitors shortly.

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