China: Green Light for First Interprovincial Hydrogen Pipeline

China has approved the construction of a strategic pipeline to transport green hydrogen from Inner Mongolia to Beijing, facilitating supply to industrial zones around the capital and boosting a rapidly expanding energy economy.

Share:

China has just approved the construction of an interprovincial hydrogen pipeline linking Inner Mongolia to the strategic Beijing-Tianjin-Hebei region. The project, spearheaded by Chinese state-owned petroleum company Sinopec, involves developing a 400-kilometer infrastructure specifically designed to carry hydrogen produced from renewable energy to heavy industries located around the Chinese capital. It marks the country’s first project of this scale exclusively dedicated to transporting green hydrogen. This decision comes at a time when Inner Mongolia is actively developing its energy potential, capitalizing on significant renewable energy capacities that remain largely untapped.

A Favorable Context for Hydrogen Development

Historically focused on fossil fuels, Inner Mongolia recently paved the way for green hydrogen by partially lifting restrictions on hydrogen production outside traditional chemical industrial complexes. This regulatory shift also applies to several other key Chinese provinces such as Hebei, Shandong, and Guangdong, thereby expanding opportunities for large-scale production. With abundant wind and solar resources, the province now enjoys a significant competitive advantage in economically producing renewable hydrogen. Easier access to the Beijing market could encourage more industrial players to establish themselves in this region, thus diversifying the available energy supply.

Addressing Growing Industrial Needs

Until now, the absence of dedicated hydrogen transport infrastructure has been considered a major obstacle to its adoption by major industrial consumers around Beijing. The future commissioning of this pipeline, now part of China’s national energy network development plan, could significantly reduce supply costs and ensure greater consistency in deliveries. Furthermore, this new infrastructural link is expected to facilitate exchanges between producers and industrial consumers, although negotiating long-term contracts remains challenging due to the emerging nature of China’s renewable hydrogen market.

A Strategic yet Costly Infrastructure

According to industry players, pipeline transport remains the most efficient and economical method for moving hydrogen across large land distances. However, the project’s technical execution will require rigorous cost management, particularly regarding land acquisition for pipeline construction. Nonetheless, integration into China’s national energy plan should simplify certain administrative procedures and minimize potential delays related to land permits. It remains to be seen how China will manage to significantly scale up hydrogen production while quickly recouping investments made in such heavy infrastructure projects.

Element 2 strengthens its partnership with HRS to install a mobile hydrogen station in Glasgow, as part of its expansion strategy for its refuelling network in the United Kingdom and Ireland.
Global hydrogen development, supported by more than 1,500 ongoing projects and significant investments, is driving strong demand for insurance coverage, with potential estimated at over USD3bn in annual premiums by 2030.
ArcelorMittal Brazil begins a collaboration with Utility Global to develop a clean hydrogen project using the patented H2Gen system, aimed at producing up to 3 tons per day at the Juiz de Fora plant.
ENERTRAG announces the acquisition of a plot in Prenzlau to install a 130 megawatt green hydrogen production unit, with a planned investment of €300 mn, thereby supporting the regional economy and local industrial sector.
H2APEX Group SCA has completed a EUR30mn ($32.5mn) capital increase to finance the acquisition of HH2E Werk Lubmin GmbH and support the development of its hydrogen project in Germany. —
Next Hydrogen launches the largest onsite clean hydrogen production and distribution station in Ontario, capable of supplying up to 650 kg per day for powering fuel cell forklifts.
A 5,500-horsepower harbour vessel was bunkered with green ammonia at the Dalian terminal, marking the creation of a full value chain for this fuel and a technical milestone for the maritime sector.
Air Liquide begins construction of the ELYgator electrolyser in Rotterdam, a 200 MW project, supported by the Dutch government and an investment exceeding €500 mn.
A pilot project in Germany aims to produce green hydrogen at sea directly from untreated seawater on offshore wind farms, using marine bacteria and robust materials.
BP withdraws from the Australian Renewable Energy Hub, a major renewable hydrogen and ammonia project in the Pilbara region, marking a new stage for energy investments in Australia.
Next Hydrogen raises CAD1.5mn from its management and a commercial lender to strengthen its cash flow and retain teams, while maintaining its review of financial and strategic solutions.
The first European citizen funding campaign dedicated to green hydrogen enabled Lhyfe to collect €2.5mn from nearly 1,200 investors, strengthening the development of new sites in France and Germany.
In the face of renewable energy intermittency, Power-to-Hydrogen-to-Power (PtP) technology could revolutionize energy storage. However, its adoption still depends on cost reduction and efficiency improvements.
South Korean company YPP and Kazakh Invest have signed a framework agreement for the development of a green hydrogen production project in Kazakhstan, with investments potentially reaching $3.1 billion.
The Dutch government has granted major funding to HyCC for its H2eron electrolysis project, aimed at producing renewable hydrogen in the Delfzijl industrial zone.
ACWA Power has signed several agreements with European partners to develop a green energy export chain between Saudi Arabia and Europe, as part of the India-Middle East-Europe Economic Corridor project.
Manufacturer Stellantis halts production of its hydrogen-powered commercial vehicles, citing a lack of commercial prospects and an insufficient market, according to a statement released by the automotive group.
Malaysia reaches a decisive milestone in its energy roadmap with the launch of a hybrid floating hydro-solar project and the first large-scale green hydrogen hub in the state of Terengganu.
Hynamics UK and Hy24 have signed an exclusive agreement to develop the Fawley Green Hydrogen project, backed by the UK HAR2 scheme, to supply green hydrogen to ExxonMobil's petrochemical complex.
The European Commission introduces a greenhouse gas emissions methodology for low-carbon hydrogen, establishing a long-awaited regulatory framework for the sector and paving the way for new industrial investments.