SINOPEC: The era of hydrogen energy is approaching

In recent years, there has been a series of significant policies regarding hydrogen energy. In April 2020, the National Energy Administration officially incorporated hydrogen energy into the draft Energy Law of the People's Republic of China. Several provinces and cities also integrated the development of hydrogen energy into their plans for the '14th Five-Year Plan' period, thereby establishing an initial policy and industrial framework for hydrogen energy development.

In March 2022, the National Development and Reform Commission and the National Energy Administration jointly issued the "Medium and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035)," which further delineates the role of hydrogen energy in China's energy system. It emphasizes its crucial position in the green and low-carbon transition, offering actionable guidelines for the high-quality development of hydrogen energy.

When skepticism prevailed, fueled by knowledge from junior high school physics textbooks and snippets from the internet about "hydrogen fragility" and "high explosion limits," Sinopec, the largest supplier of refined oil and petrochemical products and the second-largest oil and gas producer, had already forged ahead with strategic plans in the hydrogen energy sector. Publicly declaring their commitment, "We are dedicated to establishing China's first hydrogen energy company and aspiring to become the world's largest enterprise in the construction and operation of hydrogen refueling stations."

Sinopec has initiated a major project in Xinjiang, the Kuqa City Photovoltaic Green Hydrogen Project. Encompassing an area exceeding 9,500 acres, equivalent to more than 900 football fields, the project anticipates an annual production of 20,000 tons of green hydrogen. Cao Jie, Deputy General Manager of Sinopec Refining and Chemical Company in Tahe , disclosed that the cost of photovoltaic water electrolysis for hydrogen is approximately 18 yuan per kilogram.

At standard conditions (0 °C, 1 bar), the volume of 1 kg of hydrogen is approximately 11.2 cubic meters, costing about 1.6 yuan per standard cubic meter. Taking the Toyota MIRAI as an example, it consumes 0.55 kg of hydrogen per 100 kilometers, translating to a mere 1 dime per kilometer in hydrogen cost. It's important to note that this calculation considers only the hydrogen production cost and does not include transportation and operating costs. However, with the continuous reduction in hydrogen production costs, the future driving costs of hydrogen fuel vehicles have the potential to decrease significantly, potentially reaching parity with electric cars. The advantage of a quick, 3-minute full recharge time for hydrogen fuel vehicles is evident when compared to electric cars.

Many wonder why solar energy is used to generate electricity and then electrolyze water to produce hydrogen. This approach is chosen because electricity generated from solar energy exhibits randomness, volatility, and intermittency. Directly connecting to the grid with such electricity can strain grid regulation, leading to potential grid instability. Moreover, electrical energy faces challenges in storage, requiring large quantities of batteries for establishing charging stations. Converting solar energy into hydrogen offers a more convenient storage solution. In the Kuqa project, 20% of the electricity generated is allocated for grid connection, while 80% is dedicated to electrolytic water hydrogen production.

In addition to its hydrogen production efforts, Sinopec has established 83 hydrogen refueling stations, making it the world's largest company in terms of building and operating such stations. Notably, the total number of hydrogen refueling stations in the entire country is only 270. In essence, Sinopec has constructed 30% of the nation's hydrogen refueling stations. Looking ahead, by 2025, Sinopec aims to build 1,000 hydrogen refueling stations or oil and hydrogen blending stations. This means that over the next three years, Sinopec plans to construct more than 900 hydrogen refueling stations and oil and hydrogen blending stations.