State Power Investment Corp to invest $5.85 billion in Chinese green hydrogen
December 22, 2023The company intends to produce H2 using wind power installed in northeast China.
State Power Investment Corp (SPIC) of China has announced that it will make a $5.85 billion (42 billion yuan) investment into green hydrogen produced using wind energy installed in northeast China. This, according to a local government report and an official from SPIC.
The projects will be powered by a 3.5-gigawatt wind power plant installed in northeastern China.
The projects are expected to produce 164,000 metric tons of green hydrogen per year in addition to 400,000-tpy of sustainable aviation fuel (SAF) and 400,000-tpy of methanol. The facility will be constructed in Heilongjiang province’s Qiqihaer city, according to a report a Qiqihaer city official posted on the official account on the WeChat platform.
The first step for SPIC will be to build a 10,000-tpy pilot plant that will produce SAF using H2 produced with wind power. This will involve the use of tech from Tsing Energy Development Co., said the report which referred to the project as a first-of-its-kind in the country.
No official timeline has been released for the new green hydrogen, SAF and methanol project.
That said, while an official timeline has not been issued, a Reuters report said that the SAF plant is expected to begin fuel production in late 2025, citing an unnamed Chinese industry executive familiar with the investment.
That same official, whose name was not released as the details of this program have yet to be publicly announced, explained that the tech involves a blend of H2 and CO2 derived from corn-based ethanol.
400,000 tons by 2030
The green hydrogen pilot project will only be the initial phase of the project, allowing hiccups to be identified and resolved before the project will be greatly expanded. Once the pilot stage is deemed successful, the project will begin its expansion to 400,000 tons per year, which it expects to achieve by 2030, said the official.
A representative from SPIC has confirmed the report from the Qiqihaer government but declined the opportunity to comment on any of the project timelines.
SPIC is a state-run company and has the largest resources in renewables among all the state utilities in China. Its installed clean power capacity is currently estimated to be a total of 160-GW.
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