China has begun commercial operations at its first coal-to-chemicals facility using green hydrogen. Learn how hydrogen gas is integrated with industrial gas processes based on carbon monoxide and hydrogen, plus the challenges, costs, and global context.
China has entered a new phase of industrial gas innovation as its first coal-to-chemicals complex incorporating green hydrogen gas begins commercial operations, according to state broadcaster CCTV, as reported by Reuters. The project is operated by the state-owned Datang Group and integrates a 150 MW hybrid wind and solar installation to supply renewable power.
Production scale and setup
The facility is expected to generate an annual output equivalent to 70.59 billion cubic meters of hydrogen gas, supported by onsite renewable energy.
By pairing electrolysis with wind and solar, the site aims to reduce reliance on conventional fossil-based hydrogen within a traditionally coal-driven industrial gas value chain.
How coal-to-chemicals works
Coal-to-chemicals plants typically gasify coal to create synthesis gas (syngas), a blend of carbon monoxide and hydrogen.
This syngas can be upgraded into ammonia, methanol, and olefins, among other downstream products. The operator has not disclosed whether this plant will produce such derivatives at this stage.
Why integrate green hydrogen?
The objective is to cut lifecycle emissions in a sector dominated by coal while maintaining the output of key industrial gas intermediates such as hydrogen and carbon monoxide.
Using renewable electricity to make green hydrogen via electrolysis can partially offset the carbon intensity of syngas streams that begin with coal.
Key challenges and costs
High cost: Green hydrogen remains pricier than fossil-based alternatives. Current estimates put green hydrogen at about $2.28–$7.39/kg, versus roughly $0.67–$1.31/kg for grey hydrogen.
Infrastructure: Electrolyzer capacity, grid interconnections, water supply, and storage/compression systems for hydrogen gas require major investment.
Technical integration: Blending electrolytic hydrogen into coal-derived syngas streams raises process control, purity, and reliability challenges in large-scale industrial gas production.
Safety and environmental concerns: Managing flammability, leak detection, and lifecycle emissions (including carbon monoxide handling and potential CO2 by-products) demands robust EHS systems.
China’s coal context
China consumes more coal than the rest of the world combined, accounting for over half of global use.
Around two-thirds of China’s coal is burned for power generation, underscoring the significance—and difficulty—of decarbonizing heavy industry and electricity at the same time.
Global policy landscape
At COP30 in Brazil, the Powering Past Coal Alliance (PPCA), working with 29 countries, financial institutions, and partner organizations, unveiled a roadmap to speed up coal phase-outs and turn pledges into implementation.
As Canadian Minister Julie Dabrusin, PPCA Co-chair, noted, the shift from coal toward low-carbon energy and clean technology is increasingly seen as inevitable for economic growth and environmental protection.
Market outlook
The International Energy Agency reports global coal demand hit a record high in 2024, driven by China, India, and other emerging Asian economies—highlighting the scale of the transition challenge.
Projects that pair renewables with hydrogen gas production inside coal-to-chemicals complexes may serve as interim steps to reduce emissions across industrial gas supply chains that rely on carbon monoxide and hydrogen.
China’s pioneering move to integrate green hydrogen into a coal-to-chemicals facility marks an important test case. If technical and cost barriers can be overcome, blending electrolytic hydrogen with coal-derived syngas could lower emissions from industrial gas operations while maintaining production of vital intermediates like hydrogen gas and carbon monoxide.
Post time: Nov-26-2025