Chinese oil refining company Sinopec has established a venture fund to finance projects in the field of hydrogen energy. The volume of the fund at the first stage will be 5 billion yuan (about $690 million).

The main activities of the fund

• Investments in the development of key materials, equipment and technologies for the production, storage and use of hydrogen.
• Support for projects at early stages of development.
• Management company – Sinopec Private Equity Fund Management Co., Ltd., partners – Shandong New Energy Fund Management Co., Ltd. and Yantai Guofeng Investment Holding Group Co., Ltd.

Current Sinopec projects in hydrogen energy

• Implementation of a 260 MW renewable hydrogen production project in the Xinjiang Uygur Autonomous Region.
• Construction of 11 hydrogen supply centers and 144 hydrogen filling stations.
• Establish a hydrogen alliance with China Energy Group in August 2024 to coordinate the development of the industry.
• Launch a 1,150 km hydrogen truck transport route between Chongqing and Qinzhou Port, Guangxi in April 2024. There are 4 hydrogen filling stations along the route.

China’s share of global hydrogen production

According to reports, China accounts for about 50% of the world’s green hydrogen production capacity.

Conclusion

Sinopec is expanding investment in hydrogen energy by developing infrastructure and supporting technological development. China has a significant share of global hydrogen production, which is in line with the country’s strategy to develop alternative energy sources.