Shell has taken its first step into commercial production of green hydrogen in China with the startup of a 20MW electrolyser powered by onshore wind in Zhangjiakou, Hebei province.

The electrolyser, Shell’s largest to date, is part of a joint venture between Shell China and local firm Zhangjiakou City Transport Construction Investment Holding Group. The venture also includes hydrogen refuelling stations in Zhangjiakou. The two companies have plans to scale up electrolyser capacity to 60MW in the next two years.

“We see opportunities across the hydrogen supply chain in China, including its production, storage and shipping. We want to be the trusted partner for our customers from different sectors as we help them decarbonise in China,” says Wael Sawan, director of integrated gas, renewables and energy solutions at Shell.

60MW – Targeted capacity for second phase of project

The project will initially supply green hydrogen to fuel a fleet of more than 600 fuel-cell vehicles at the Zhangjiakou competition zone during the Winter Olympic Games, which start in early February. After that, the hydrogen will be used for public and commercial transport in the Beijing-Tianjin-Hebei region.

“We are glad to contribute to China’s progress towards its commitment for a carbon-neutral Olympic Games, and in the longer term for its 2030 and 2060 carbon targets,” says Jason Wong, executive chairman of Shell companies in China.

“With project phase-two expansion plans and through partnerships with the local government and businesses, we will support the development of a low-carbon energy system and low-carbon transport system in Zhangjiakou and the wider Beijing-Tianjin-Hebei region,” he adds.

The Zhangjiakou project, which took 13 months to complete, is one of only three commercial-scale electrolysers in China today, alongside a 30MW facility operated by Baofeng Energy and a 10MW facility operated by Chinese hydrogen technology supplier Hypower in Hebei province, according to Shell.

Shell has recently been talking up the importance of hydrogen to China’s net-zero goals.

The country must ramp up its use of clean hydrogen exponentially to about 16pc of its final energy demand to meet its 2060 net-zero goal, the oil major said earlier this month.

It outlined a scenario under which China’s hydrogen demand scales up from negligible levels today to more than 17EJ/yr by 2060—equal to 580mn t of coal equivalent. Demand reaches nearly 5EJ/yr by 2030, accounting for about 5pc of the energy system, as China reaches peak carbon emissions, according to the scenario.

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Author: Stuart Penson