China has commenced commercial operations of its first coal-to-chemicals project incorporating green hydrogen, marking a milestone in the country's efforts to lower emissions from traditionally carbon-intensive industries. The project, located in Duolun, Inner Mongolia, is operated by state-owned power producer Datang Group. According to plant manager Cao Guoan, the project is forecast to produce 70.59 billion cubic metres of hydrogen annually, although specific current output levels were not disclosed.

The plant integrates coal conversion technology with renewable hydrogen production. In typical coal-chemical processes, coal is converted into syngas—a mixture of carbon monoxide and hydrogen—which is then transformed into downstream products including ammonia, methanol and olefins. By adding green hydrogen into the process, the project aims to reduce the sector’s overall carbon footprint.

Renewable Power Enables Green Hydrogen Integration

Supporting the hydrogen production system is a 150 MW wind and solar facility located on-site. This renewable plant not only powers green hydrogen production but also sends surplus clean electricity to the national grid, demonstrating dual-system efficiency. The facility has been designated by China’s energy regulator as a national hydrogen demonstration project. State broadcaster CCTV highlighted that the initiative offers a “replicable model for the green transformation of the coal chemicals industry.”

China is one of the few countries investing heavily in large-scale coal-to-chemicals technologies as part of its strategy to reduce reliance on imported fuels that could be disrupted during geopolitical tensions. However, the sector remains emissions-intensive, contributing to the country lagging behind its 2025 carbon intensity reduction targets. The integration of green hydrogen is seen as a potential route to mitigating these emissions while maintaining domestic industrial security.

The successful start of operations at the Duolun site signals an important test case for blending renewable hydrogen with traditional coal-based industrial systems, offering a new pathway for China’s evolving clean-energy transition.

Source: 

https://www.reuters.com/business/energy/chinas-first-coal-chemicals-project-with-green-hydrogen-starts-commercial-2025-11-20/