The Inner Mongolia and Ningxia regions have made substantial progress in developing green hydrogen made from renewable energy, capitalizing on their abundant renewable energy resources to meet the needs of the local and nearby markets. Government bodies in both regions have urged for the implementation of supportive policies, standardized technical guidelines and safety regulations at the national level to promote further growth of the carbon dioxide-free green fuel. Inner Mongolia, with its vast wind and solar resources, has positioned itself as a leader in green hydrogen production. It can annually produce 60,000 metric tons of green hydrogen. The region has over half of the nation’s wind energy and more than a fifth of its solar energy resources, said Zhao Junpeng, Deputy Director of the Science and Equipment Department at the Inner Mongolia’s Energy Administration.
This allows for low-cost hydrogen production, which is crucial for meeting the high demand in nearby markets like the Beijing-Tianjin-Hebei region and Ningxia, he said. Since 2022, the government in Inner Mongolia has introduced 14 policies covering various aspects of the hydrogen industry, from production and storage to transportation. These policies include reducing red tape for green hydrogen projects operating outside chemical parks, he added. Inner Mongolia has been proactively integrating the development of green hydrogen with various industries, including transportation, metal smelting and coal chemicals, said Zhao. Over 400 hydrogen-fueled vehicles have been put into operation in the region, and a hydrogen-powered train has successfully completed a trial run. As the region advances the low-carbon transformation of coal-fired power generation, the region will implement the co-firing of more than 10% of green hydrogen with coal in the sector, he said. Focusing on developing a complete green hydrogen industry chain from production to storage and transportation, the region aims to create a leading green hydrogen industry zone.
Ningxia is also making significant strides in green hydrogen development, with a production capacity of 26,600 metric tons supported by four renewable energy hydrogen projects. Efforts have been made in Ningxia to expand the application of hydrogen. In the Ningdong Energy Chemical Industry Base, 31 hydrogen-powered vehicles – 25 heavy-duty trucks, two buses and four street sweepers – are in use. To date, these heavy-duty trucks have transported 85,000 tons of cargo. Compared to their oil-fueled counterparts, they have mitigated 790 tons of carbon dioxide emissions. The region has also launched projects to demonstrate the integration of hydrogen into natural gas for consumption.
But there are still a series of challenges for green hydrogen development. “Although the hydrogen energy industry in our country has entered a period of rapid development and is gaining significant attention, the development, key technologies and business models are still largely in the exploration, testing and research stages,” the Energy Commission said. At the national level, there is a lack of unified technical guidelines and safety regulatory standards for various stages of hydrogen development, including production, storage, transportation and utilization. Additionally, there are no specific measures in place for policies supporting the hydrogen energy industry, resulting in low investment from enterprises.
High cost is another major factor hindering green hydrogen development. “Hydrogen, when used as an energy source, incurs high costs in production, transportation and application. Reducing the production costs of green hydrogen is essential for advancing the hydrogen energy industry,” the Commission noted.
The cost of purified hydrogen produced through coal gasification is typically CNY11 per kilogram, while hydrogen derived from methanol is priced at CNY22 per kg. The average cost of hydrogen production through electrolysis using renewable energy sources, however, reaches around CNY30 per kg. The lack of developed infrastructure for hydrogen energy, specifically in terms of storage and transportation facilities, is also hindering its widespread market adoption. Increased funds should be allocated to universities, research institutions and enterprises to bolster their research and development (R&D), ultimately leading to a reduction in technological costs, while more efforts should be made to attract high-level talents, teams and entrepreneurs to be devoted to developing key technologies for green hydrogen production, so as to enhance technological innovation, the China Daily reports.
