Green hydrogen will make up more than a quarter of China's H2 supply by 2035: Sinopec
State-owned Chinese oil and gas company predicts that year will see almost 12 million tonnes a year of renewable hydrogen production
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While China has installed 610MW of electrolyser capacity to date — more than half of the world’s total — this would produce less than 85,000 tonnes of hydrogen even if all projects were operating at nameplate capacity.
Sinopec itself has admitted that its 260MW Kuqa project is only operating at 20% capacity, with problems unlikely to be resolved before late 2025.
Overall hydrogen supply is predicted to increase even further to 38.1 million tonnes by 2030 and 42.64 million tonnes by 2035.
This boom is expected to come on the introduction of stricter penalties for carbon emissions on incumbent hydrogen production, according to Sinopec. While China’s national emissions trading scheme currently only covers the power sector, the government had suggested on introduction in 2017 that it could be expanded to cover other industries in future.
Sinopec predicts that falling renewable electricity costs, automated manufacturing, and improvements in electrolyser technology will all drive down the price by 2035 to the point where large-scale projects can be built to supply large volumes to the domestic market.
Part of the major growth in overall hydrogen demand is expected to come from a wider range of sectors using hydrogen.
Up to 2035, Sinopec anticipates “electricity will play a leading role in the green and low-carbon transformation”, with a predicted increase in electricity consumption from around 8,700 terawatt hours today to 12,200 terawatt hours by that year as more processes are directly electrified.
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