(Yicai Global) Nov. 30 -- Chinese oil and gas major Sinopec Group has started building a giant photovoltaic hydrogen production facility in the country’s remote northwest which is the world’s largest hydrogen factory powered by renewable energy under construction, online news outlet The Paper reported today.

Costing CNY3 billion (USD471 million), the plant will be based in Kuqa in the Xinjiang Uyghur Autonomous Region where there is plenty of space and the sunlight is particularly strong, the report said. It will be the country’s first green hydrogen factory, capable of an annual output of 20,000 tons, and will be powered by a solar power plant that can generate 618 gigawatts of energy a year.

Once completed in June 2023, the green hydrogen will be used in Beijing-based Sinopec’s chemical refining plants, replacing hydrogen made from fossil fuel sources. It is expected to reduce greenhouse gas emissions by 485,000 tons a year and contribute CNY130 million (USD20.4 million) annually to the region’s gross domestic product.

Sinopec, which has the biggest petrol station network in China, has big plans for hydrogen. It is already the largest hydrogen producer in the country, producing 3.9 million tons per year. It is planning to build 1,000 hydrogen refueling stations and oil-hydrogen hybrid stations by 2025.

The deserts of Xinjiang are home to a large number of photovoltaic projects. In the first 10 months, the region generated 15,900 GWs of solar power, up 22 percent from a year ago.

Editor: Kim Taylor