China's State Power Investment Corp (SPIC) has disclosed a substantial 42 billion yuan ($5.85 billion) investment initiative in northeastern China, aiming to produce fuel from hydrogen generated through wind power.
As outlined in an official statement and a local government report, the ambitious projects include the development of a 3.5 gigawatt wind power plant, a 164,000 metric ton per year hydrogen production facility, and facilities for the annual production of 400,000 tons each of sustainable aviation fuel (SAF) and methanol.
These endeavors are slated to be established in Qiqihaer city within the Heilongjiang province, as reported on the city's official WeChat platform.
The initial phase involves the construction of a 10,000-ton-per-year pilot plant dedicated to producing SAF from wind power-derived hydrogen, utilizing technology from Tsing Energy Development Co. This groundbreaking project is hailed as the first of its kind in China. While the report does not specify a timeline for the construction of these facilities, a senior Chinese industry executive, who requested anonymity due to the confidential nature of the information, revealed to Reuters that the SAF plant is anticipated to commence operations by late 2025.
The innovative technology underpinning the pilot project involves the blending of hydrogen with carbon dioxide extracted from corn-based ethanol. Successful implementation of the pilot plant is expected to pave the way for expansion, reaching an annual production capacity of 400,000 tons by around 2030, according to the anonymous official.
A representative from SPIC acknowledged the details outlined in the city government's report but refrained from providing specific comments on the project's construction timelines. SPIC, a state-run entity, boasts the largest renewable resources portfolio among China's state utilities, currently managing a total of 160 gigawatts of installed clean power capacity.
