Correction | Kexilier Jingli, LONGi, and 718 have been shortlisted as suppliers of electrolyzers for Sinopec’s Kuche project.

　　With the establishment of the “Dual Carbon” and “1+N” policy framework and the release of the “Mid- to Long-Term Development Plan for the Hydrogen Energy Industry (2021-2035),” the development speed of the green hydrogen industry has significantly accelerated.

　　On May 6, Sinopec Xinxing Xinjiang Green Hydrogen New Energy Co., Ltd. announced the results of the bidding for the complete set of equipment used in the electrolysis-based hydrogen production system for the Sinopec Xinxing Xinjiang Kuche Green Hydrogen Demonstration Project. This marks another significant step forward for what is now the world’s largest green hydrogen-to-hydrogen-chemicals project. The advancement of the Sinopec Kuche project will facilitate the exploration of pathways to reduce the costs of green hydrogen, accelerate the development of electrolysis-based hydrogen production technologies, and promote the substitution of domestic green hydrogen for gray hydrogen.

　　Jingli, Longi, and 718 have been shortlisted for the Sinopec electrolyzer equipment procurement order. Nearly all of China’s well-known alkaline electrolyzer manufacturers participated in the bidding for this project. Notably, ThyssenKrupp also took part in the bidding. In the end, Jingli, Longi Hydrogen Energy, and Institute 718 were shortlisted for the project. The basic information on the shortlisted suppliers is shown in Table 1.

　　According to relevant tender documents obtained by Hydrogen Cloud Chain, the Xinjiang Kuche Green Hydrogen Demonstration Project will procure 52 alkaline electrolyzers, each with a single-cell hydrogen production capacity of 1,000 Nm³/h. The total maximum hydrogen production capacity of the plant will be 52,000 Nm³/h (approximately 240 MW). The project will also include the construction of 13 sets of electrolyzer gas-liquid separation facilities and 7 sets of hydrogen purification facilities.

　　For this green hydrogen project, Sinopec requires bidders to participate in the "listing and leadership" initiative for the standardization of the alkali-based hydrogen production process and the development of a complete set of equipment for the Xinjiang Kuche Green Hydrogen Project of Sinopec Group. Bidders must, in accordance with the "listing and leadership" requirements, manufacture and conduct demonstration testing on a complete set of water electrolysis hydrogen production equipment with a capacity of 4,000 Nm³/h or greater (using alkaline water electrolysis technology, with four electrolyzers sharing a single gas-liquid treatment system and a single purification facility). Alternatively, bidders may provide engineering test equipment or supply performance records featuring the same technology, at least the same scale, or larger. Bidders must ensure that the "listing and leadership" verification work is completed within 20 days after the bid opening.

　　This bid section includes 13 sets of alkaline electrolysis hydrogen production equipment. In accordance with the “Open Call and Leadership” requirement for complete sets of electrolysis hydrogen production equipment with a capacity of 4,000 Nm³/h or above, these 13 sets already meet the tender requirements for 52 single-cell alkaline electrolyzers, each with a hydrogen production capacity of 1,000 Nm³/h.

　　Figure 1: Basic Information on Shortlisted Suppliers

　　Source: Sinopec bidding documents, compiled by Hydrogen Cloud Chain

　　Demonstration projects by major energy groups are boosting the development of green hydrogen. According to Hydrogen Cloud Chain, various regions still harbor certain doubts about the economic viability of green hydrogen. At this stage, the national government has not yet introduced a clear subsidy plan for large-scale green hydrogen production, which will likely have some impact on the rapid development and wider adoption of green hydrogen.

　　Large energy groups such as Sinopec are taking the lead in promoting the scaled demonstration application of green hydrogen, which will help rapidly enhance China's engineering capabilities for hydrogen production from renewable energy sources, accelerate the expansion of green hydrogen production, and reduce its costs. This, in turn, will boost the adoption of green hydrogen across various sectors and speed up the transition from gray hydrogen to green hydrogen.

　　01

　　Project Introduction

　　The Xinjiang Kuche Green Hydrogen Demonstration Project of Sinopec New Star Xinjiang Green Hydrogen New Energy Co., Ltd. officially commenced construction on November 30, 2021. This project is currently the largest photovoltaic-based green hydrogen production project under construction globally, with a total investment of nearly 3 billion yuan. The project comprises five major components: photovoltaic power generation, transmission and transformation, electrolysis for hydrogen production, hydrogen storage, and hydrogen transportation. The project will build a new photovoltaic power plant with an installed capacity of 300 megawatts and an average annual power generation capacity of 618 million kilowatt-hours; an electrolysis-based hydrogen production plant with an annual capacity of 20,000 tons; hydrogen storage spheres with a storage capacity of approximately 210,000 standard cubic meters; a hydrogen pipeline with a transportation capacity of 28,000 standard cubic meters per hour; and associated transmission and transformation facilities. The project is expected to be completed and put into operation in June 2023. The green hydrogen produced will supply Sinopec’s Tahe Refining & Chemical Plant, replacing the current hydrogen production process that relies on fossil natural gas. After the project becomes operational, it is projected to reduce carbon dioxide emissions by 485,000 tons annually and contribute an average of 130 million yuan per year to the local GDP, while generating tax revenues exceeding 18 million yuan.

　　02

　　Introduction to the Winning Bidding Company

　　Cockleer Jingli (Suzhou) Hydrogen Energy Technology Co., Ltd.

　　Cockerill Jingteli (Suzhou) Hydrogen Energy Technology Co., Ltd. was established by the Belgian John Cockerill Group on the basis of taking over all personnel and intellectual property rights from Suzhou Jingteli Hydrogen Production Equipment Co., Ltd. The company has significantly strengthened its R&D capabilities, upgraded its equipment, and expanded its production capacity. It specializes in the R&D, manufacturing, and sales of alkaline water electrolysis hydrogen production equipment and is positioned as the China headquarters for John Cockerill Group’s hydrogen energy business. In 2021, the company produced more than 50 water electrolysis hydrogen production units with a capacity of 1,000 Nm³/h each and participated in the R&D and production of 1,200 Nm³/h and 1,300 Nm³/h water electrolysis hydrogen production units. By 2022, the company’s production capacity had reached 1 GW, and it now possesses the technology and capability to manufacture ultra-large-scale water electrolysis hydrogen production equipment. It is expected to deliver 1,500 Nm³/h water electrolysis hydrogen production units in the second half of the year. The company holds nearly 50 patented technologies. Its global market share exceeds 35% (Bloomberg Finance data for 2021).

　　Xi'an Longji Hydrogen Energy Technology Co., Ltd.

　　Xi'an Longi Hydrogen Energy Technology Co., Ltd. was established on March 31, 2021. On October 16, 2021, the company publicly announced the rollout of its first alkaline water electrolyzer, an event that drew considerable attention within the industry. The electrolyzer features a high current-density design, with each unit capable of producing hydrogen at a rate of 1,000 Nm³/h or higher. By the end of 2021, Longi had already achieved an annual delivery capacity of 500 MW. On April 12, 2022, three sets of 1,000 Nm³/h hydrogen production equipment from Longi Hydrogen were successfully shipped and dispatched. It is expected that by the end of this year, Longi will have an annual production capacity ranging from 1.5 to 2 GW.

　　The 718th Institute of China Shipbuilding Industry Corporation

　　The No. 718 Research Institute of China Shipbuilding Industry Corporation Ltd., founded in 1966, is affiliated with China Shipbuilding Industry Corporation Ltd. Its headquarters are located in Handan City, Hebei Province, and it has a branch office in Tianjin. The institute is a key national research institution integrating scientific research and development, design and manufacturing, and technical services across both military and civilian industries. Its wholly-owned subsidiary, CSSC (Handan) Perry Hydrogen Energy Technology Co., Ltd., leverages the No. 718 Research Institute’s more than six decades of technological expertise and engineering experience in the hydrogen energy field. It has integrated resources from the institute’s five core business segments—hydrogen production via water electrolysis, hydrogen production from methanol, purification of hydrogen-rich tail gases, hydrogen refueling stations and on-vehicle hydrogen systems, and medical oxygen supply equipment—and, following an increase in capital investment, established Perry Hydrogen Energy Technology Co., Ltd. As a result of this integration, Perry Hydrogen Energy Technology Co., Ltd. has become one of the most complete hydrogen energy equipment industry chain enterprises in China today. The company currently employs 360 professional and technical personnel, operates two provincial-level R&D platforms, and has six workshops dedicated to commissioning, mechanical processing, and final assembly, with a total construction area of 21,500 square meters. It has the capacity to annually produce 350 sets of alkaline hydrogen production equipment and 120 sets of PEM pure-water hydrogen production equipment, as well as to undertake the construction of various types of hydrogen refueling stations. The water electrolysis equipment developed by No. 718 has already been exported to multiple countries in Europe, the Americas, and Asia.