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Construction Begins on $1.5 Billion Green Hydrogen Project in China

Sep 27

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China has begun constructing a $1.5 billion green hydrogen project in Xinjiang, integrating wind and solar energy to produce 40,000 tonnes of green hydrogen annually and fueling 600 hydrogen-powered trucks.

 

China has commenced construction on a massive $1.5 billion green hydrogen project in Mulei County, Xinjiang. Led by Grove Hydrogen Energy Technology Group, the project will feature a 200MW hydrogen-fired power plant to provide grid backup, six hydrogen filling stations, and is designed to fuel 600 hydrogen-powered trucks.


Integrating Wind, Solar, and Hydrogen for Clean Energy

The project, named the Grove Mulei Hydrogen Energy Storage Peak Shaving Power Station and Integrated Wind, Solar, Hydrogen, and Vehicle Storage Project, will utilize wind and solar power to produce about 40,000 tonnes of green hydrogen annually. While the specific capacity of the electrolysers has not been disclosed, it is estimated that around 400MW of electrolyser capacity will be required to achieve this production target.


Backup Power and Hydrogen Storage

One of the highlights of the project is the 200MW/1,600MWh hydrogen-fired peaker plant, designed to supply backup power to Xinjiang’s electricity grid. This facility will be capable of providing 200MW of electricity for up to eight hours, stabilizing the grid when wind and solar energy production falls short.


According to Grove chairman Hao Yiguo, “This project is currently the largest single-planned hydrogen energy storage project both domestically and internationally. Once completed, it will not only produce hydrogen but also generate significant economic returns while positioning Mulei as a leading hub for hydrogen energy storage.”


A New Hub for Hydrogen Energy in Xinjiang

Xinjiang, with its vast renewable energy resources, has experienced high curtailment rates in recent years — sometimes reaching as high as 29% — due to excess energy production. This new project is expected to utilize existing renewable energy sources to produce green hydrogen, making effective use of Xinjiang’s abundant wind and solar resources.


The hydrogen filling stations will have a daily capacity of five tonnes and will support Grove’s fleet of 600 hydrogen-powered trucks. The company also produces hydrogen-powered trucks under its Zhongji brand, boasting a 49-tonne model with a 500km range, along with an H2-powered sports car that has a range of 1,200km.

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