Accelerating Hydrogen Power Development and
Advancing Utilization of Clean and Efficient Energies
Today, the global energy industry is undergoing energy transformation toward low-carbon, carbon-free, and low pollution. The 14th Five-Year Plan period is a critical period for the low-carbon transformation of China's energy and chemical industry. Hydrogen energy, as a secondary energy with diverse sources, is clean, low-carbon, flexible, and efficient, worthy of considering it the future high-quality energy. Many countries have incorporated the development of hydrogen energy into their national strategies and investigated ways of industrialization. In 2020, China started the top-level planning for hydrogen energy. With the launch of the policy of "replacing subsidies with incentives" for FCV, China’s hydrogen energy industry is stepping into a period of rapid development.
As an energy and chemical company wholly involved in the relevant industry chain, Sinopec produces over 3.5 million tons of hydrogen annually, accounting for nearly 14% of the national hydrogen production. With more than 30,000 gas stations, we have essential advantages of industrial distribution for hydrogen energy. We are also working on hydrogen fueling stations, hydrogen production technology, hydrogen fuel cells, hydrogen storage materials, and other fields to accelerate the development of green hydrogen industry, actively respond to climate change, and ensure national energy security.
Hydrogen energy industry partnership
Establishment of a hydrogen energy enterprise
In November 2019, Sinopec signed a memorandum of cooperation with Air Liquide to explore ways for a closer partnership on hydrogen energy, marking a new stage in China-France clean energy cooperation. Sinopec aims to set up its hydrogen energy enterprise to devote itself to the hydrogen technology R&D and the infrastructure network construction. In addition, it aims to introduce leading international hydrogen energy enterprises as strategic investors to jointly build hydrogen energy industry chain and hydrogen economic ecosystem. Per the memorandum of cooperation, Air Liquide will be one of the shareholders of Sinopec Hydrogen Energy Company. We will jointly drive the promotion and application of integrated automotive solutions based on hydrogen energy and fuel cells.
Establishment of a joint venture
In September 2020, Sinopec Beijing Oil Products Company, Beiqi Foton Motor Co., Ltd., and Bestpath IoT Technology Co., Ltd. signed a letter of intent for strategic alliance, aiming to build a hydrogen energy application scenario centering on Beijing and gradually spreading to the Beijing-Tianjin-Hebei region, and jointly promote the development of the automobile industry based on hydrogen energy and fuel cells. Per the agreement, the three parties should establish a joint venture to provide hydrogen fueling services for commercial transport vehicles used for postal transport, express logistics, and slag transport. Hence, the three parties should leverage their respective advantages and resources and consider the operation scenarios of HFCV to fulfill the needs of new industrial zones like ports, economic zones, and logistics parks. In addition, hydrogen fueling facilities will be selectively added to qualified gas stations to promote the development of hydrogen energy industry on transregional logistics and long-distance passenger transport in the Beijing-Tianjin-Hebei region.
Thrust of green hydrogen development
Green hydrogen denotes hydrogen produced by water electrolysis with renewable energy, which is characterized by zero pollution in the entire industry chain. It is anticipated that the increasing proportion of green hydrogen is the shift for HFCV development. In October 2020, Sinopec Capital, Enze Fund, and Cummins China signed a letter of intent in Beijing. All parties agreed to leverage their advantages and resources to jointly drive the development and promotion of the hydrogen production by water electrolysis. Per the letter of intent, Sinopec Capital and Enze Fund should provide sufficient market resources and capital, while Sinopec should leverage its advantages in supply chain optimization, sales, and market network to provide strong support for future hydrogen production technology.
Construction of hydrogen fueling station
Sinopec was actively adjusting its planning and layout by adopting a new mode of "integration of oil, hydrogen, and electricity," that is, constructing more hydrogen fueling stations or oil-hydrogen stations. Compared with traditional gasoline refueling, hydrogen refueling takes only 4-6 min at a time and can provide a driving range of 300-400 km. Of note, hydrogen fuel has the advantages of high refueling efficiency, long mileage, zero pollution, and zero carbon emission.
In July 2019, Sinopec Guangdong Petrochemical Company completed the construction of its oil-hydrogen station in Zhangkeng, Foshan City, which is the first new-type refueling station integrating oil, hydrogen, and electricity energy supply and the chain convenient store services, suggesting the continuous improvement of Sinopec's hydrogen energy research and utilization. To date, several demonstrate oil-hydrogen stations have been built nationwide. We are promoting the transformation of hydrogen energy from gray hydrogen to blue hydrogen and green hydrogen, and building a full hydrogen energy industry chain.
Production and supply of hydrogen gas
In March 2020, the newly built 2000 m3/h hydrogen purification equipment owned by Sinopec Yanshan Petrochemical Company worked in one go for the Beijing Winter Olympics hydrogen new energy supply assurance project. In September 2020, the first set of high-purity hydrogen production demonstration equipment independently developed by Sinopec was successfully put into operation in Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. Sinopec is the first company in China to purify by-product hydrogen to 99.999%, which is far higher than the national standard of 99.97% for HFCV. In December 2020, Phase I of the Hydrogen Fuel Cell Hydrogen Donor Center of Sinopec Guangzhou Petrochemical Company was officially put into operation.
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