Fast-tracking the Development of China's leading Hydrogen Energy Company to Lead the New Hydrogen Era

Recognizing hydrogen energy as the most promising form of secondary clean energy and a key driver of new energy growth, Sinopec has pursued the strategy of "leading in hydrogen refueling and demonstrating green hydrogen utilization to support carbon reduction", focusing on hydrogen mobility and the application of green hydrogen in refining processes, vigorously developing integrated hydrogen energy operations and promoting green transformation and development. In this regard, Sinopec has achieved breakthroughs in multiple areas, including green hydrogen production powered by green electricity, hydrogen refueling stations, hydrogen fuel cells, and hydrogen storage materials. Furthermore, the Company has established a complete hydrogen energy industry chain covering production, storage, transportation, processing, utilization, and research, and is actively working to build itself into China's leading hydrogen energy company, aiming to further lead, promote, support, and serve the development of a modern hydrogen energy industry chain in China.

Green Hydrogen Production Capacity Expansion

In accordance with its development strategy to integrate hydrogen and renewable electricity, and promote green hydrogen initiatives for carbon reduction, Sinopec has developed a comprehensive strategic plan to drive large-scale projects that integrate renewable energy-based hydrogen production, storage, and utilization. The Company has also advanced research into wind–solar coupled green hydrogen production technologies and supporting systems, establishing a development and application model to accelerate the integration of green hydrogen into refining processes. Sinopec has launched China's first PV-powered green hydrogen demonstration project—the Xinjiang Kuqa Green Hydrogen Demonstration Project. The green hydrogen produced at this site replaces natural gas-derived hydrogen at Tahe Refining & Chemical, effectively addressing key industry challenges such as large-scale, flexible hydrogen production from fluctuating energy sources and ensuring a stable supply of green hydrogen for refining operations. This achievement marks a series of innovative breakthroughs in the industrialization of green hydrogen, providing a Chinese solution for the large-scale development of the global green hydrogen industry. Furthermore, Sinopec has accelerated the construction of a 30,000-metric-ton-per-year integrated wind and solar green hydrogen project in Ordos, Inner Mongolia. The green hydrogen produced is being used to support the upgrading and transformation of nearby coal chemical operations, helping to reduce carbon emissions. This establishes a new development model that integrates coal chemical operations with green hydrogen to facilitate carbon reduction efforts. The Company has also planned a 100,000-metric-ton-per-year integrated wind and solar green hydrogen project in Ulanqab, Inner Mongolia, which will support the construction of China's first cross-provincial, large-scale, long-distance pure hydrogen transmission pipeline network.

Strengthening Infrastructure Planning and Deployment

In terms of hydrogen mobility, Sinopec has formulated a plan for the development of the hydrogen energy corridor, proposing a strategic layout of "three axes, four zones, and N routes". This framework supports the creation of six major hydrogen energy corridors–Beijing–Shanghai, Chengdu–Chongqing–Wanzhou, Beijing–Tianjin, Shanghai–Jiaxing–Ningbo, Jinan–Qingdao, and Wuhan–Yichang–preliminarily shaping a "one large, five small" corridor network for hydrogen mobility. In terms of hydrogen supply centers for fuel cells, Sinopec has coordinated project scale and scheduling based on the principle of appropriate forward planning and reasonable capacity surplus, resulting in the establishment of 11 new hydrogen supply centers for fuel cells. For hydrogen refueling station development, Sinopec has focused on the "3+2" fuel cell demonstration city clusters, leveraging key ports, logistics hubs, hydrogen energy corridors along expressways, and coal chemical bases. With forward planning, hydrogen refueling stations were strategically rolled out in key cities ahead of market demand. By the end of the reporting period, Sinopec had established a total of 142 hydrogen refueling stations, making it the world's largest operator of hydrogen refueling stations.

In April 2024, Sinopec finalized the route planning for the Beijing–Shanghai hydrogen energy corridor. Stretching approximately 1,500 kilometers across six provinces—Beijing, Tianjin, Hebei, Shandong, Jiangsu, and Shanghai—the corridor is supported by seven hydrogen refueling stations along the route. The successful test drive also marked China's first wide-coverage, long-distance, and cross-regional transportation using hydrogen-powered vehicles.

Accelerating Scientific and Technological Innovation

Following an integrated strategy of "science and technology-driven support, industry-led growth, coordinated financing, and open collaboration", Sinopec has actively advanced the development of a modern industry chain for hydrogen energy application. At the foundational level, Sinopec has conducted research on industry planning and deployment, actively promoted the development of a data platform for the modern hydrogen energy industry chain, and successfully hosted several major industry events, including the High-Quality Development Promotion Conference for Modern Industrial Chain of Hydrogen Energy Application and the inaugural meeting of the Expert Consultation Committee. In terms of joint ventures and partnerships, Sinopec has signed hydrogen energy cooperation agreements with universities, enterprises, and government bodies at the district, municipal, and provincial levels. It has also supported local governments in formulating plans for developing the hydrogen energy industry and deepened mutually beneficial partnerships with several international energy companies. On the domestic application side, Sinopec has achieved key technological breakthroughs in equipment manufacturing, driven by the development of large-scale green hydrogen production projects and hydrogen refueling stations in Kuqa, Xinjiang, and Ordos, Inner Mongolia.