China’s first coal to chemicals project with green hydrogen starts commercial operations

China's first coal-to-chemicals project integrating green hydrogen started commercial operations on Thursday, according to a report from state-run CCTV.

Operated by major state-owned power producer Datang Group, the project is forecast to produce 70.59 billion cubic metres of hydrogen annually, station manager Cao Guoan told CCTV.

He did not say how much the plant is currently producing or whether it would also generate other chemical derivatives. Coal chemical plants typically convert coal into syngas - a mix of carbon monoxide and hydrogen - which can be further transformed into products including ammonia, methanol and olefins.

The plant, in Inner Mongolia's Duolun, includes a 150-megawatt wind and solar plant that also sends its surplus electricity to the grid, according to the report.

The plant was designated by the energy regulator as a national hydrogen demonstration project and "provides a replicable model for the green transformation of the coal chemicals industry," CCTV said.

China is one of the few countries transforming coal into chemicals, oil and gas at large scale, a growing industry that is helping to reduce China's reliance on imports that could be cut off in a conflict.

But growth in the emission-intensive sector is a key reason China is behind its 2025 carbon intensity target, spurring efforts to curb emissions.