The green hydrogen project represents a further step in China’s efforts to scale up renewable hydrogen and low-carbon fuel production for industrial and international markets. According to CEEC, the expansion involves an investment of RMB 10.83 billion and builds on the operating experience of the industrial park’s first phase.

Second Phase Targets Higher Production and Lower Costs

The second phase is designed to improve production efficiency and reduce the cost of manufacturing green ammonia. CEEC expects unit production costs to fall by more than 10% compared with Phase 1, supported by optimized facility design, upgraded domestic equipment and digital industrial management systems.

The wider industrial park integrates renewable electricity generation with hydrogen production, ammonia synthesis and methanol manufacturing. Wind and solar power supply electricity for electrolysis, which separates water into hydrogen and oxygen. The hydrogen can then be used to produce ammonia and other chemical products.

This integrated approach links renewable power generation with industrial fuel production. It also offers a way to store and transport renewable energy in chemical form, potentially serving sectors where direct electrification remains difficult.

The broader development plan envisages 3,000 MW of renewable energy generation capacity and large-scale production of green hydrogen, ammonia and methanol. The second phase will expand the facility’s production capabilities as CEEC seeks to improve the economics of renewable fuels.

Phase 1 Provides the Operational Foundation

The first phase of the Songyuan Hydrogen Energy Industrial Park began operations in December 2025. It includes 800 MW of renewable energy capacity and was designed to produce 45,000 metric tons of green hydrogen and 200,000 metric tons of green ammonia annually, alongside green methanol production and hydrogen storage facilities.

The first phase established the initial production infrastructure for the larger industrial park. The second phase is intended to build on that foundation through increased capacity, equipment upgrades and improved operating efficiency.

China Power Engineering Consulting Group’s Northeast Institute served as the engineering, procurement and construction contractor for the original project, according to CEEC. Other suppliers involved in the wider development include Sungrow Hydrogen for hydrogen production systems, Goldwind for wind turbines and subsidiaries of CIMC Enric for hydrogen storage equipment.

The green hydrogen project received ISCC EU certification in December 2025, according to CEEC. Such certification can support participation in international renewable fuel markets by providing evidence related to sustainability and supply-chain requirements.

Green Ammonia Targets Shipping and Industrial Markets

Green ammonia is one potential output of the expanded facility, with applications in established chemical markets and emerging low-carbon fuel markets. In shipping, ammonia can potentially be used as a marine fuel or as a carrier for hydrogen, offering an alternative pathway for reducing emissions in hard-to-electrify sectors.

In October 2026, ammonia produced at the facility was reportedly used in a ship-to-ship green ammonia bunkering operation in Zhoushan, Zhejiang Province. The demonstration connected production with storage, transfer and maritime fuel application.

Green ammonia may also serve conventional industrial uses, including fertilizer manufacturing. Its environmental benefits depend on factors such as the electricity source, production methods, supply-chain emissions and end use. Safe handling will require specialized procedures, while broader maritime adoption depends on the availability of suitable vessels, engines and bunkering infrastructure.

Expanding production could help CEEC pursue emerging demand from shipping operators and industrial consumers seeking alternatives to fossil-derived fuels. However, the commercial outlook will depend on production costs, certification requirements, transport infrastructure and buyers’ willingness to pay for lower-carbon products.

Cost Competitiveness Remains Key to Expansion

The Songyuan project reflects China’s efforts to move renewable hydrogen technologies from early deployments toward large-scale industrial production. The country’s established wind and solar manufacturing sectors, chemical production infrastructure and domestic ammonia market provide a foundation for integrating renewable electricity with fuel manufacturing.

Larger production volumes may help spread capital costs across more output and improve equipment utilization. Nevertheless, the commercial viability of green ammonia will continue to depend on renewable electricity prices, electrolyzer performance, financing costs, infrastructure availability and long-term purchase agreements.

The second phase will therefore provide a significant test of whether improved technology, optimized facility design and increased output can make renewable ammonia more competitive with conventional ammonia produced using fossil fuels.

International trade could provide another growth opportunity, linking Chinese renewable fuel production with shipping and industrial demand in overseas markets. Access to those markets will depend on sustainability certification, fuel standards, logistics and commercial agreements.

With the first phase operating and construction of the second phase underway, the Qingqing No. 1 Songyuan Hydrogen Energy Industrial Park is moving toward expanded production of green hydrogen and renewable fuels. Its performance will help demonstrate whether integrated renewable power and chemical production can achieve the cost reductions required for broader commercial adoption.

The test marks a technical development in integrating renewable energy into grid restoration procedures. As wind and solar power account for a growing share of electricity generation in the region, grid-forming technology could provide additional resources for restoring local power supplies when conventional grid connections are unavailable.

Grid-Forming Technology Supports Black Start Capability

Black start refers to the process of restoring electricity generation and transmission after a widespread blackout without relying on an external power supply to restart the system. Conventional wind turbines generally follow the voltage and frequency established by the grid, meaning they cannot independently restart a power system after a complete loss of supply.

Grid-forming wind turbines, when integrated with energy storage, can establish voltage and frequency independently. This capability allows the equipment to energize selected electrical infrastructure and potentially support the gradual restoration of other equipment within a wind farm.

During the wind farm black start test, energy storage equipment helped the grid-forming system establish voltage and energize the 35 kV collector line. The equipment then operated stably for more than three hours, demonstrating that a single grid-forming turbine could drive the restart process for the wind farm under the tested conditions.

The result provides a potential pathway for incorporating renewable generation into emergency grid restoration strategies. However, wider deployment will depend on technical requirements, system configuration and validation under different grid conditions.

Renewable Energy Growth Increases Grid Restoration Needs

The test comes as renewable energy capacity continues to expand across Hebei’s southern power grid. By the end of September 2026, installed wind and solar capacity in the region had reached 59.23 million kilowatts, equivalent to 59.23 GW, accounting for more than 61% of total installed capacity.

With wind and solar resources representing a growing proportion of the regional generation mix, grid operators are exploring ways to maintain stability and restore electricity supply during major disruptions. Wind farms equipped with grid-forming systems and energy storage could potentially provide local support alongside established black start resources, including pumped-storage hydropower.

The ability to establish voltage without an external grid supply is particularly relevant during emergency conditions. It could help reduce dependence on conventional generation sources for initial restoration and provide additional options for reconnecting parts of the electricity network.

Simulation and Risk Assessment Preceded the Test

Before the field test, technical specialists from the State Grid Hebei Electric Power Research Institute developed a high-precision simulation model to assess system behaviour under complex operating conditions. The team repeatedly evaluated risks associated with key stages, including voltage establishment, grid connection and stable load carrying.

This preparatory work helped assess the system’s response before the technology was tested at the wind farm. During the field operation, the integrated grid-forming and energy storage equipment established voltage and energized the collector line, after which the system maintained stable operation for more than three hours.

The successful test indicates that the technology can support a defined black start sequence at the station level. Further engineering work and operational validation would be needed to establish how the approach could be applied across different wind farms and wider network restoration scenarios.

Wind Farms Could Expand Emergency Power Resources

The Liuqing test adds wind generation to the range of resources being evaluated for grid restoration in Hebei. By combining grid-forming turbines with energy storage, operators could potentially use renewable energy facilities as local emergency resources rather than relying exclusively on conventional generation and storage assets.

The approach may be particularly useful in areas with high renewable energy penetration, where maintaining reliable electricity supply requires new methods of coordinating generation, storage and grid control systems.

The successful demonstration provides an engineering example for further evaluation in North China and other regions with substantial wind and solar capacity. Its wider contribution will depend on the ability to replicate the performance under different network configurations, operating conditions and restoration requirements.

As renewable generation expands, grid-forming technology could become an increasingly important part of strategies to strengthen electricity system resilience and accelerate recovery from major power disruptions.

Engie CEO Catherine MacGregor said the company wants India to become one of its leading markets, moving beyond its current position as a medium-sized market within the group. The proposed investment is still being structured and could involve a combination of debt and equity. Engie has also applied to establish a treasury operation at GIFT City in Gujarat to facilitate project financing.

Grid Connectivity Emerges as a Key Constraint

Grid connectivity remains a challenge for Engie as it pursues its expansion plans. MacGregor said some of the company’s projects are ready but awaiting connections to the electricity network. The issue reflects the infrastructure requirements associated with renewable energy development, as projects distributed across multiple locations require additional grid connections and coordinated transmission planning.

A project can be ready to generate electricity but remain unable to operate at its intended capacity if the necessary network connection is unavailable. Such delays can affect revenue generation and complicate construction schedules. They also demonstrate that installed generation capacity does not automatically translate into electricity that can be delivered when and where it is needed.

Engie has also identified land access as a constraint. Securing suitable sites, obtaining grid connections and coordinating construction with transmission availability will be important to maintaining its planned pace of annual additions. The company has not disclosed the number of projects awaiting connectivity or the total capacity affected.

Battery Storage Supports Renewable Integration

Battery energy storage systems form another part of Engie’s India strategy. According to MacGregor, batteries can help distribute electricity supply across different periods of the day, reducing pressure during concentrated solar-generation hours and potentially easing some grid bottlenecks.

Solar generation is concentrated in particular hours, requiring the network to accommodate substantial electricity volumes at the same time. Storage can shift some of this supply to later periods, offering greater flexibility in matching generation with demand. This allows renewable projects to be paired with systems that influence when electricity is delivered to the grid.

MacGregor described congestion during solar-generation hours as a challenge, although she said its impact on Engie was not particularly significant at present. She also pointed to the government’s push towards battery energy storage systems as an opportunity for the company.

Engie has not specified its planned battery capacity, storage locations, selected technologies or commercial arrangements for selling stored electricity. These details will help determine the contribution of storage to its 7 GW target and its effectiveness in addressing grid constraints.

Execution Capabilities and Financing Strategy

To support its planned growth, Engie is strengthening its in-house capabilities across engineering, construction, operations and maintenance. The company intends to manage projects throughout their lifecycle, using experience gained during construction and operation to inform future engineering and development decisions.

This approach is intended to improve execution and protect project returns in a competitive market. However, Engie has not confirmed whether its operating model will reduce costs or shorten delivery schedules. Its ability to meet the annual capacity target will depend on how effectively it coordinates development, construction, financing and operations.

The company is also open to inorganic growth opportunities, including acquisitions, alongside projects developed internally. Its proposed treasury operation at GIFT City is expected to facilitate project financing, although the final funding structure remains under consideration.

India Gains Strategic Importance in Engie’s Portfolio

India currently represents approximately 2 GW of Engie’s portfolio, including projects under construction and those already operating. The company aims to increase this figure to 7 GW by 2030, with annual additions averaging around 1 GW. MacGregor said this level of annual development would be significant compared with the company’s additions globally.

Engie operates across several major markets, including France, the United Kingdom, Belgium and Brazil. Its planned growth in India is intended to elevate the country from a medium-sized market to one of greater strategic importance within the group. The Engie India Expansion strategy also reflects the company’s interest in developing renewable generation alongside storage and emerging sources of electricity demand.

Data centres represent a potential opportunity, although Engie has not disclosed specific projects, power agreements or associated capacity requirements. The combination of renewable energy and storage could be relevant to electricity-intensive consumers seeking dependable supplies, but the company has not outlined a specific commercial model linking these activities.

Delivery Will Depend on Infrastructure and Project Execution

Engie’s plan sets out a target of approximately €3 billion in investment, an increase in its Indian portfolio from 2 GW to 7 GW by 2030, and annual capacity additions of around 1 GW. The company has identified grid connectivity, land access and congestion during solar-generation hours among the challenges that could affect delivery.

Its proposed response includes battery storage, stronger internal execution capabilities, potential acquisitions and a treasury operation at GIFT City. However, details of the final financing structure, storage capacity, project pipeline and implementation milestones remain undisclosed.

The broader challenge is whether electricity infrastructure can develop alongside renewable generation and emerging power demand. For Engie, meeting its target will require more than announcing new capacity. Projects must secure land, obtain network connections, complete construction and become operational.

The Engie India Expansion plan therefore remains a stated ambition rather than a completed investment programme. Progress towards 7 GW by 2030 will depend on finalising financing arrangements and overcoming the infrastructure constraints the company has identified.

Loan Agreement Signed in Bangkok

The agreement was signed in Bangkok on 15th October 2026 by ADB President Masato Kanda and Uzbekistan’s Deputy Prime Minister and Minister of Economy and Finance, Jamshid Kuchkarov.

Infrastructure Upgrades and Renewable Energy Integration

The programme will upgrade 60 electricity substations across the country and introduce digital management systems. These improvements are expected to reduce power losses, ease transformer overloading and stabilise electricity supplies to consumers and public institutions.

The programme is also expected to enable the connection of at least 3.3 gigawatts (GW) of new renewable energy capacity and cut annual greenhouse gas emissions by nearly 23,000 tonnes of carbon dioxide equivalent.

Strengthening Operational Capacity and Workforce Skills

The initiative will strengthen the operational capacity of Uzbekistan National Electric Networks JSC, improve management and financial controls, and develop staff skills. It prioritises employee training and greater participation by women in the energy sector. These measures are intended to support the effective operation and long-term management of the upgraded electricity infrastructure.

First Results-Based Energy Financing Programme

The project will be Uzbekistan’s first ADB energy initiative under the ADB-World Bank Full Mutual Reliance Framework (FMRF) and the country’s first results-based financing programme in the energy sector. ADB will serve as the lead lender.

Later in October 2026, the World Bank plans to submit a proposal for an additional $100 million to its Board of Executive Directors, potentially bringing further financing to the programme.

ADB’s Broader Support for Uzbekistan’s Energy Sector

The project builds on ADB’s broader support for Uzbekistan’s energy sector. Since 2010, the bank has provided more than $3.4 billion in financing and guarantees.

The initiative aligns with Uzbekistan’s Uzbekistan 2030 strategy on renewable energy development and energy efficiency, as well as ADB’s 2024–2028 country partnership strategy.

The company recently held a start-up ceremony for its DX77 generator engine at its Gunsan campus in South Korea. Featuring a 77-liter displacement and maximum output in the 3 MW class, the DX77 is the largest engine developed by the company to date. Its capacity is equivalent to the average electricity consumption of approximately 7,000 households.

Designed to operate at 1,800 revolutions per minute (rpm), the DX77 combines high output with a compact footprint, helping reduce installation space. These characteristics could support modular data centers that progressively add equipment in line with their power generation requirements. The engine also incorporates high-strength, wear-resistant materials and a high-efficiency cooling system to support extended high-speed operation. Its filters have a replacement interval of 1,000 hours, while the company plans to offer a service warranty it describes as the industry’s longest.

HD Construction Equipment is also developing a broader range of generator engines across the 1–3 MW segment. Its 1 MW DX22 is already being produced at the Incheon plant. At the Gunsan engine plant, scheduled for completion at the end of October, the company plans to begin phased mass production of the 1.5 MW DX37 in early 2027. Mass production of the 2 MW DX50 is targeted for 2029.

Beyond diesel engines, the company intends to expand its gas engine portfolio, focusing on North America, where AI data center growth and delays in grid connections are increasing demand for on-site electricity generation. The DX77 has also been designed with the potential to accommodate alternative fuels, including gas and hydrogen.

Moon Jae-young, president of HD Construction Equipment, said the DX77 would strengthen the competitiveness of its generator engine business. He added that the company would conduct comprehensive performance and durability testing to improve the product and establish new growth opportunities in the global power generation market.

The Rabigh 2 project scope includes design, engineering, procurement, equipment erection, construction, commissioning and performance testing of the power plant. The facility will incorporate high-efficiency power generation technologies capable of operating in both simple-cycle and combined-cycle modes. This flexibility is intended to help the plant respond to varying electricity demand and provide operational adaptability as the Kingdom’s power requirements grow.

Peng Gang, President of POWERCHINA MENA, highlighted the company’s experience in power engineering and its established track record in Saudi Arabia during the signing ceremony. He reaffirmed POWERCHINA’s commitment to working closely with project partners to ensure safe, efficient and timely execution while maintaining high standards of engineering and construction quality.

The Rabigh 2 project is expected to strengthen Saudi Arabia’s national electricity grid by improving power supply stability and reliability. Its flexible generation capabilities are also expected to support the integration of increasing renewable energy capacity into the national power system. This could help address grid stability challenges associated with variable renewable energy generation as the country expands its renewable energy capacity.

The development forms part of Saudi Arabia’s broader efforts to modernise energy infrastructure, enhance energy security and support long-term economic diversification under Vision 2030. By adding substantial generation capacity, the project is intended to help meet the Kingdom’s growing electricity requirements. Upon completion, the 2,400 MW power plant is expected to contribute to electricity supply while reinforcing Saudi Arabia’s position as a major regional energy and investment hub.

Saudi Arabia and Kuwait Expand Electricity and Technology Cooperation

Under the agreement with Kuwait, Prince Abdulaziz and Minister of Electricity, Water and Renewable Energy Subaih Abdulaziz Abdulmohsen Al-Mukhaizeem established a framework covering electricity, renewable energy, electrical interconnection, power exports, energy efficiency, storage and smart grids. The memorandum also addresses digital transformation, innovation, cybersecurity and artificial intelligence. It seeks to localize related materials, products and services, strengthen cooperation between specialized companies, and advance climate-mitigation technologies, including circular carbon economy solutions.

Qatar Agreement Covers Oil, Gas and Clean Energy

The agreement with Qatar, signed with Minister of State for Energy Affairs Saad bin Sherida Al-Kaabi, covers petroleum, natural gas, refining, petrochemicals, electricity, clean hydrogen, renewable energy, energy efficiency and storage. It also provides for exploring joint ventures to develop oil and gas export pipelines and promoting sustainable petrochemical products in construction and other sectors. Both countries will coordinate on international energy-transition and climate issues, including negotiations under the UN Framework Convention on Climate Change, the Paris Agreement and efforts to establish an international treaty on plastic pollution.

Egypt Agreement Targets Energy Security and Infrastructure

The memorandum with Egypt, signed with Minister of Petroleum and Mineral Resources Karim Badawi, focuses on crude oil, petroleum products and natural gas, including trade, transportation, storage, distribution, infrastructure and logistics. It aims to strengthen energy-market integration, improve supply-chain resilience and enhance energy security on a commercial basis and in accordance with both countries’ laws. The agreement also covers sharing Saudi expertise in upgrading and operating fuel stations, promoting competition in Egypt’s liquefied petroleum gas sector, and expanding petrochemical cooperation and investment in existing and planned projects. Together, these energy cooperation agreements establish a broader framework among the four countries.

22nd Power Plant Summit 2026

Theme: Empowering the Future of Thermal Power: Efficiency, Sustainability, Flexibility & Artificial Intelligence

Day 1 of the Power Plant Summit examined developments in thermal power operations, with discussions spanning digital transformation, plant reliability, operational flexibility, and emerging technologies across three structured technical sessions:

• AI and Digitalization in Power Generation: The opening session examined the growing application of artificial intelligence and digital technologies in power generation, covering operational challenges, cybersecurity considerations, machine learning applications, and approaches for implementing digital systems across utility-scale power operations.
• Emerging Trends in Thermal Power: This session covered emerging technology and operational developments in thermal generation, including agentic AI for autonomous process control, performance considerations for supercritical and subcritical units during cyclic operations, robotic high-pressure cleaning of air preheaters (APH), and Inconel cladding techniques for addressing boiler corrosion and erosion.
• Innovations in Reliability, Sustainability, and Fuel Transition: The final session focused on improving thermal asset performance through predictive maintenance, circular economy practices, and sustainability measures. Discussions also included deployment experiences from industrial Carbon Capture, Utilization, and Storage (CCUS) projects.

20th PaperTech 2026

Theme: Make Indian Pulp & Paper Industry World Class

The PaperTech forum focused on improving energy performance, process efficiency, and technological capabilities across the pulp and paper industry through a series of technical discussions:

• Innovations Driving Efficiency and Growth: Discussions examined advancements in pulp processing, fibre handling, energy-efficient cooling tower technologies, integrated plant automation, and process integration aimed at improving plant-level efficiency.
• Roadmap to Global Competitiveness: A dedicated panel considered the factors influencing the competitiveness of Indian paper mills, including resource availability, environmental compliance requirements, and operational benchmarks aligned with global industry practices.
• Packaging and Sustainable Materials: The session explored sustainable and circular packaging solutions, with attention to high-performance and smart paper-based packaging technologies and their role in evolving material applications.
• Best Practices Showcase: Day 1 also saw the start of technical presentations under the Energy Awards category, highlighting energy-saving initiatives and implementation practices from participating paper mills.

Cleantech Nexus 2026 (CII-GEC)

Theme: Enabling Cleantech Ecosystem Collaboration & Accelerating Sustainable Innovation

Cleantech Nexus focused on emerging clean technologies, their commercialisation pathways, and the ecosystem needed to support their wider industrial adoption:

• Climate Finance and Ecosystem Collaboration: The opening panel explored approaches to supporting early-stage cleantech ventures through venture funding, incubation mechanisms, and collaboration between startups and established corporates.
• Sustainable Technology Showcases: Two specialised showcase tracks presented market-oriented clean technology solutions, including zero-emission energy systems, thermal storage technologies, and automated carbon-accounting platforms.
• Industrial Scaling and Startup Journeys: Discussions examined the practical challenges of deploying cleantech solutions within heavy industrial environments, while startup founders shared perspectives on regulatory approvals, operational challenges, and developing sustainable business models.
• Sectoral Pitch Tracks: The day concluded with startup and venture presentations across battery and energy-storage technologies, automated circular waste sorting, sustainable water management, and industrial decarbonization hardware.

Looking Ahead: From Strategy to Actionable Decarbonization

The Power Info Today team observed that Day 1 of the Energy Efficiency Summit reflected the breadth of technologies and operational approaches being explored across India’s energy-intensive industries. The parallel forums connected developments in thermal power, manufacturing efficiency, sustainable materials, artificial intelligence, predictive maintenance, carbon accounting, and energy storage. Discussions also highlighted the importance of technology deployment, financing, and industry collaboration in supporting practical decarbonization efforts. With further sessions scheduled across the summit, the upcoming discussions are expected to continue examining the technologies, operational strategies, and sector-specific approaches shaping the transition towards greater energy efficiency and lower-carbon industrial operations.

A Dual Investment Strategy Targeting Energy Infrastructure

According to official stock exchange filings dated 10 September, approximately US$623 million has been earmarked for land acquisition, the construction of a new manufacturing facility, and the installation of production equipment. The primary objective is to expand production capacity for high-power generation engines. The facility is scheduled for completion in May 2028.

HD Hyundai stated that the investment is designed to respond to the expansion of the engine-based power generation market, driven by rising global electricity demand.

South Korean media reported that the shipbuilder plans to establish a production base for its HiMSEN engines in Onsan-eup, Ulju-gun, Ulsan, with an annual production capacity of 3 gigawatts (GW).

HiMSEN is a four-stroke engine developed by HD Hyundai. It features a lightweight, high-power, and high-efficiency design, with a broad range of models capable of operating on diesel and natural gas. HD Hyundai plans to increase its total HiMSEN engine production capacity from the current 3 GW per year to 7.2 GW by 2030.

Dedicated SMR Manufacturing Facility in the Pipeline

Separately, around US$178 million will be invested in the construction of a dedicated SMR manufacturing facility, supporting HD Hyundai’s entry into the major equipment manufacturing business for small modular reactors. Construction of this facility is expected to be completed by April 2029.

The Chosun Daily reported that the project is aimed at meeting surging electricity demand driven by the proliferation of AI data centres, which require stable and uninterrupted power supplies. Small modular reactors have emerged as a promising next-generation energy source in this context.

HD Hyundai has highlighted that it is accelerating its investment in SMR technology development, “positioning the company at the forefront of next-generation clean energy innovation.”

A Growing Partnership with TerraPower

HD Hyundai’s engagement in the small modular reactor space has been building steadily over recent years. In November 2022, the company invested US$30 million in TerraPower, a leading US-based SMR company founded by Microsoft co-founder Bill Gates.

In March 2025, HD Hyundai signed an agreement with TerraPower to expand the manufacturing supply chain for the commercialisation of Natrium reactors. Further reinforcing this relationship, the shipbuilder was named the preferred bidder to manufacture and supply key equipment for TerraPower’s Natrium reactors last May.

The HD Hyundai SMR initiative, backed by this multi-hundred-million-dollar commitment and its deepening collaboration with TerraPower, reflects the company’s clear intention to position itself as a substantial player in the global clean energy manufacturing landscape.

One example is the Sinopec Xinjiang Kuqa Green Hydrogen Pilot Project in Kuqa, Xinjiang Uygur Autonomous Region. China’s first green hydrogen refining project has an annual capacity of 10,000 tonnes and began production on June 30, 2023. Solar electricity generated across the Gobi desert is transmitted more than 20 kilometers to the hydrogen production facility, where it powers water electrolysis. The resulting hydrogen is then transported by pipeline to Tahe Refining & Chemical Company for use in refining, replacing natural gas previously used in the process. According to Li Ruixia, manager of the hydrogen energy management department at Sinopec Star New Energy Co., Ltd., the project can reduce carbon dioxide emissions by about 485,000 tonnes annually when operating at full capacity. Li said the project has operated safely and steadily for more than three years, demonstrating the feasibility of large-scale industrial applications of green hydrogen. The China hydrogen industry is also extending the role of hydrogen beyond refining as renewable electricity becomes increasingly integrated with hydrogen production.

The potential applications include power generation, steelmaking and transportation. In Shandong province, a pure hydrogen shaft furnace demonstration line operated by China Iron & Steel Research Institute Group Co., Ltd. has achieved regular production of direct reduced iron with a metallization rate above 96 percent. The facility has also completed batch trial production of 3N-grade, or 99.9 percent, high-purity iron. In transportation, hydrogen fuel cell technology has expanded into buses, mining trucks, ships, drones and rail transit. During the Beijing 2022 Winter Olympic Games, 200 hydrogen-powered buses equipped with fuel cell systems developed by SPIC Hydrogen Energy under State Power Investment Corporation provided transportation services, covering more than 880,000 kilometers and reducing carbon dioxide emissions by more than 620 tonnes.

By the end of 2025, China had recorded nearly 40,000 cumulative sales of hydrogen fuel cell vehicles and built 574 hydrogen refueling stations with a combined daily refueling capacity of more than 360 tonnes. Annual green hydrogen production capacity had reached about 250,000 tonnes, while green hydrogen had begun replacing conventional fuels in some refining and coal chemical processes. National energy planning is also giving hydrogen a larger role in the country’s future energy system. The outline of the 15th Five-Year Plan (2026-2030) identifies hydrogen as a key area for future industries, while the plan for building a new energy system during the same period includes hydrogen within the non-fossil energy supply system and sets a target of producing 2 million tonnes of hydrogen from renewable energy sources. The China hydrogen industry nevertheless continues to face high production costs, limited economic viability and incomplete market and pricing mechanisms. Continued advances in solar and wind power, along with improvements in electrolyzers and fuel cells and reductions in technology costs, are expected to support wider commercial use of green hydrogen.