Hydrogen Ambition of Sinopec and the Achievements in 2022

Sinopec is China's largest supplier of refined oil and petrochemical products, the second largest oil and gas producer, the world's largest refining company and the third largest chemical company. Sinopec is already one of the largest hydrogen energy suppliers in China, with an annual hydrogen production of more than 3.5 million tons, accounting for about 14% of the China's total output. It has a solid foundation in hydrogen transportation, storage, refilling, and application. In 2021, Sinopec set the goal to become China's No.1 hydrogen energy Company and vigorously promoted the construction of hydrogen infrastructure and deployments of hydrogen applications. During the 14th Five-Year period (2021-2025), it planned to build 1,000 hydrogen refilling stations with an annual hydrogenation service capacity of 250,000 tons, also focusing on the field of hydrogen transportation and green hydrogen refining. According to our research and investigation, Sinopec primarily promotes the industrial application of hydrogen energy in the following aspects.

1. Green hydrogen production

Sinopec is building new green hydrogen production facilities in locations rich in renewable power resources and close to its chemical industry zones. By March 2023, the two largest green hydrogen plants under construction by Sinopec in China are located in Kuqa, Xinjiang and Ordos, Inner Mongolia, with an annual capacity of 20,000 tons and 30,000 tons green hydrogen after completion. And Sinopec is also promoting the production of green hydrogen, to gradually replace the gray hydrogen used in the petrochemical production process, the company plans to build an annual green hydrogen production capacity of 500,000 tons by 2025.

Image: Kuqa Green hydrogen plant under construction

2. Hydrogen refilling station

Sinopec has the most extensive network of gas stations in China, which brings great convenience for the construction of hydrogen refilling stations. Sinopec has made it clear in 2021 that it will ensure the construction of 600 hydrogen refilling stations and strive to build 1,000 hydrogen refilling stations in the next 5 years,  Sinopec will transforms from an integrated petrochemical enterprise to a comprehensive energy service provider of "oil, gas, hydrogen and electricity". Guided by this goal, Sinopec has been building hydrogen refilling stations across the country since then. According to our statistics, by the end of 2022, a total of 310 hydrogen refilling stations have been built in China, of which 98 are owned by Sinopec. Sinopec has become the dominant force in the construction of hydrogen stations in China.

Image: Sinopec's hydrogen refilling station in Beijing

3. Hydrogen pipeline

Sinopec has profound experience in gas and liquid storage and transportation and management of hazardous chemicals storage and transportation. Sinopec has built three long distance hydrogen transmission pipelines, among which the "Baling-Changling" hydrogen transmission pipeline, with a length of 42 kilometers, has been in steady operation for six years, making it the longest hydrogen transmission pipeline in operation in China. Sinopec's plan in hydrogen storage and transportation technology, pipelines and other aspects has provided a strong boost to the development of Sinopec's hydrogen energy.

Image: Sinopec's hydrogen pipeline

As of March 2023, Sinopec is pushing ahead with plans to build large-scale green hydrogen projects in Inner Mongolia, and will invest 20 billion Rmb to build a comprehensive green power and hydrogen energy project in Ulanqab, Inner Mongolia. This includes an integrated onshore wind power hydrogen production project and a 400-kilometer hydrogen transmission pipeline, which will connect the hydrogen production plant in Ulanqab with Sinopec's Yanshan Petrochemical plant in Beijing, with an annual capacity of 100,000 tons of hydrogen.