China aims to exploit its large capacity to generate renewable energy to advance Western countries in production and transportation. China is working to rapidly develop green hydrogen infrastructure in China, and last January the authorities in the city of Ulaankap – which is located in Inner Mongolia – approved a project aimed at investing in In the field of green hydrogen, it is worth 20.9 billion Chinese yuan from the Chinese oil major Petroleum and Chemical Corporation, or Sinopec.

The electricity generated is used on site through solar and wind energy to electrolyze water and produce 100,000 tons annually of green hydrogen. The plans aim to supply companies in Beijing with the aim of full operation during June 2027.

Sinopec did not invest only in Ordos, as it invested in Inner Mongolia and began in 2023 to develop its plans to build a factory with a production capacity of about 30 thousand tons, which includes storage and transportation functions. June 2024 will witness the first operations of Sinopec in a factory with a capacity Productivity is about 20 thousand tons in Xinjiang.

Green hydrogen is a next-generation decarbonizing alternative energy fuel of the various types of hydrogen produced for energy purposes, attracting the most attention by virtue of how it is generated.

Green hydrogen is produced by burning fossil fuels, which leads to the emission of carbon dioxide, but green hydrogen, which is produced by using electricity derived from renewable energy sources such as solar and wind energy, does not suffer from this disadvantage.

In order to achieve net zero carbon dioxide emissions by 2050, the proportion of green hydrogen among all forms of clean and environmentally friendly energy – which is represented by green hydrogen energy – must rise to 77.8%.

The Chinese company is working on a push in the field of basic electrolysis equipment to produce green hydrogen, and several companies have plans, including Beric, which is affiliated with a Chinese shipbuilding company, and Shandong Chemical Company is working to accumulate technological capabilities and has begun exporting to more than 30 countries and regions.

China has 1.2 gigawatts of installed capacity at the end of 2023, already half of the global total, and in light of this, the share rose from less than 105 during 2020 to 30% during 2022.

Industries related to green hydrogen are working to achieve effective use of electricity from renewable sources, and China's production is concentrated in the interior regions in light of the goals set by the government, and Mongolia's annual production is expected to reach 500 thousand tons.

There are inland areas that are invested in using solar energy due to the sunny climate, and there is a challenge facing the transmission of electricity over long distances, such as Shanghai and Guangzhou, and an estimated 10% of the energy generated in some areas is not used at all.

Green hydrogen is transported via pipelines, and China is expected to become the largest single market for clean hydrogen by 2050, as the majority of fuel for domestic use is transported through pipelines. Pipelines are cheaper than shipping hydrogen by sea, and China recognizes that greater domestic availability Green hydrogen enhances their industrial competitiveness.

There is an agreement agreed upon by PetroChina and its partners during the year 2022 to start a green hydrogen pipeline, and in light of this, Sinopec began planning during April 2023 to extend a 400-kilometre pipeline that will work to connect Inner Mongolia and Beijing, and in the end it will be possible to transport about 600 thousand Tons of green hydrogen every year.

The government plans to increase production of green hydrogen to between 100,000 and 200,000 tons per year by 2025, and there are plans to produce green hydrogen in Europe, where it plans to establish a production system for 10 million tons per year within the region by 2030.