China Petroleum & Chemical Corporation or Sinopec has announced its plans to spend $4.6 billion on producing hydrogen energy by 2025. This initiative by the Chinese oil and gas enterprise is dictated by its ambition to become a net-zero energy provider by 2050.
Furthermore, the company plans on becoming China’s largest hydrogen producer for transportation fuel with a target capacity of 200,000 tonnes of hydrogen refueling per year by 2025.
But Sinopec isn’t interested solely in becoming the country’s leading hydrogen producer. As was mentioned by the company’s acting Chairman Ma Yongsheng, the goal is to “expand forcefully” into producing hydrogen from renewable energy sources, the so-called green hydrogen.
This is strong evidence suggesting that Asia’s biggest oil refiner is making its transition to natural gas and hydrogen in leaps and bounds.
In fact, hard targets have already been set, as Sinopec aims for the production of over 1 million tonnes of green hydrogen between now and 2025. And an extra 400 megawatts of solar power generation capacity is expected to be added for electric vehicle charging.
And much has already been accomplished so far.
The Chinese oil and gas giant has built 20 hydrogen filling stations, and 60 more are either currently under construction or awaiting approval. And so far, it has managed to boost hydrogen output to 3 million tonnes per year, albeit mainly from non-renewable energy sources.