1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Hydrogen production from PV is a clean energy technology that combines solar PV power generation with water electrolysis technology, aiming to make hydrogen production. Due to its environment-friendliness, efficiency, and sustainability, this technology has enormous market potential.

This project utilizes cutting-edge technology and equipment to ensure the cleanliness of production. During the operation, the project fully embodies the concept of circular economy. The pollution control measures comply with the requirements for environmental management, ensuring that exhaust gas, wastewater, noise, and solid waste meet the standard discharge and safe treatment. The implementation of the project is in line with China’s industrial development policies, and is a key step in promoting technological progress in the hydrogen production from electrolysis and energy storage industry in Jilin Province, which is in line with the strategic goal of sustainable development of China’s national economy. It is expected that the project will promote local employment, increase local tax revenue, and drive the development of the local economy. In addition, the construction of the project will also promote the formation of industrial clusters, expand the industrial chain, and have a positive driving effect on the economic development of the construction site of the project and even China.

1.1.2 Market prospect

(1) Project construction background

With the transformation of the global energy structure and the increasing awareness of environmental protection, the development and utilization of new energy have received unprecedented attention. The development of storage and transportation technologies for hydrogen, as a clean and efficient energy carrier, is particularly crucial. Electrolyte hydrogen storage technology, as an effective way of hydrogen energy storage, can achieve efficient production and stable storage of hydrogen, which is of great significance for promoting the application of hydrogen energy in the energy system.

In response to changes in the domestic and international market for hydrogen production from electrolysis and energy storage, the government is vigorously promoting and accelerating the transformation and upgrading of the hydrogen production from electrolysis and energy storage industry. The product structure of the hydrogen production from electrolysis and energy storage industry is gradually shifting from low-end products to medium and high-end products. Currently, the demand in the high-end market is surging, and the demand in the hydrogen production from electrolysis and energy storage market is increasing, with supply exceeding demand.

The technology used in this project is mature, with zero environmental impact, low operating costs, and strong risk resistance, it is in line with national industrial and environmental protection policies, and has obvious investment advantages and broad market prospects.

Through the implementation of this project, it is expected to provide an efficient and safe solution for the storage and transportation of hydrogen energy, inject new vitality into the development of the new energy industry, and make positive contributions to environmental protection and sustainable development.

(2) The necessity of project construction

Promoting the research and development and technological innovation of hydrogen production from electrolysis and energy storage products in China:

This project focuses on energy conservation, emission reduction, and quality improvement, with a focus on diversified and serialized research and development and production of hydrogen production from electrolysis and energy storage. This is highly in line with national industrial policies, with the goal of creating high-end products with high added value and broad market prospects. Driven by product innovation, the companies accelerate the research and development process of high-end hydrogen production from electrolysis and energy storage. In terms of product positioning, this project will focus on developing low-emission, low energy consumption, and high intelligence control, multi-functional comprehensive applications, advanced manufacturing processes, and human-machine engineering design, striving to achieve the true “zero” emission goal. This is not only of great significance for promoting the adjustment of industrial structure and economic transformation and upgrading in Songyuan City, but also for consolidating the industrial foundation of the province’s hydrogen production from electrolysis and energy storage industry and equipment manufacturing industry, as well as promoting the province’s economic development.

Enhance the competitiveness of enterprises and meet their long-term strategic development:

With the rapid development of the domestic hydrogen production from electrolysis and energy storage industry, the project enterprises are utilizing the abundant resources and unique advantages in the local area to tap into the potential and improve the product production technology. This “hydrogen production from electrolysis and energy storage project” will leverage its technological leadership and talent advantages, improve its technological level through technological transformation, purchase advanced technological equipment, and adopt a large-scale production and operation strategy to enhance the enterprises’ market competitiveness. The project will fully utilize local resources and make every effort to promote the research and development and production of hydrogen production from electrolysis and energy storage, in order to promote the sustainable development of the enterprises. This will help the enterprises expand their main business of hydrogen production from electrolysis and energy storage, extend their industrial chain, and make breakthroughs in promoting the development of industrial clusters. The construction of the project will vigorously introduce the most advanced production equipment at home and abroad, and build modern workshops with complete facilities. This is a crucial part of the long-term strategic planning of the project companies, which is related to the future development potential of the enterprises. Therefore, the proposal of this project is timely and necessary.

Promoting local employment and driving the development of the industrial chain:

Except for a few management personnel and key technical personnel recruited directly by the project company, the addition of new employees will mainly be resolved through local recruitment. After the completion of the project, it will provide a large number of employment opportunities for the local area, help laid-off workers and idle population to find new jobs, and effectively promote the prosperity of the local economy and social stability. In addition, the implementation of the project will also drive the development of China’s hydrogen production from electrolysis, energy storage, and related upstream and downstream industries, which will have a huge and far-reaching impact on enhancing China’s comprehensive national strength. This is of great significance for activating the national economy, increasing national income, and improving the living standards of the people.

(3) Market prospect of the project

With its characteristic of zero emission, green and renewable hydrogen will become the key to building a low-carbon society in the future. Unlike grey hydrogen, which relies on fossil fuels such as coal or natural gas for production, the production process of green hydrogen achieves zero carbon emission and is an ideal choice for industries such as transportation, chemical, oil refining, steel, and power to achieve large-scale decarbonization.

After decades of technological accumulation, the technology of hydrogen production from water electrolysis has entered a period of vigorous development after 2020, especially in the context of the “dual carbon” goal and energy structure optimization. The shipment volume of China’s hydrogen production from water electrolysis industry is showing a rapid growth, with a total shipment volume of about 1,200 MW in 2023 and a market size of 3 billion yuan. At present, alkaline water electrolysis (AWE) dominates the hydrogen production from water electrolysis industry in China, with proton exchange membrane (PEM) electrolyzer serving as a supplement. However, with the continuous progress of fuel cell technology and the acceleration of PEM localization, the cost of PEM electrolyzer is expected to gradually decrease, while its market share is expected to gradually increase. With the continuous progress of core components and key technologies in electrolyzers, the application prospect for the technology of hydrogen production from water electrolysis will be even broader.

The zero-emission characteristic of green renewable hydrogen makes it an important pillar for building a low-carbon society in the future. Compared to grey hydrogen produced from fossil fuels, the production process of green hydrogen achieves zero carbon emission and is an ideal choice for industries such as transportation, chemical, oil refining, steel, and power to achieve large-scale decarbonization.

It is expected that by 2025, the demand for green hydrogen will have reached about 1.2 million tons, and the cumulative shipment of hydrogen production from water electrolysis equipment is expected to reach about 15 GW between 2023 and 2025. According to this trend, it is expected that there will be another peak in growth from 2026 to 2028, and the shipment volume is expected to have reached 20 GW by 2029.

The government actively promotes technological innovation and industrial scale development through policy support and funding subsidies. Meanwhile, the increasingly frequent international cooperation projects and cross-border technological exchanges have created favorable external conditions for the global promotion of green hydrogen technology.

In such a market environment, the cooperation between upstream and downstream enterprises in the green hydrogen industrial chain is becoming increasingly close. From upstream renewable energy power generation companies, to midstream manufacturers of hydrogen production from water electrolysis equipment, and to downstream hydrogen application enterprises, they are all seeking more efficient synergies. Such integration of industrial chain not only helps to reduce the costs, but also accelerates the commercialization process of green hydrogen technology.

In addition, with the continuous maturity of green hydrogen technology and the expansion of its application fields, its role in energy transformation is becoming increasingly important. Green hydrogen can not only replace fossil fuels as a clean energy, but also play a key role in energy storage and distributed energy systems. Therefore, green hydrogen is regarded as an indispensable part of the future energy system, with enormous market potential and broad development prospect.

1.1.3 Technical analysis

The principle of hydrogen production from PV is to use the electricity generated by solar PV cells to water electrolysis. During the water electrolysis process, water molecules are decomposed into hydrogen and oxygen under the action of electric current. This method has the following advantages:

Environment-friendly‌: The hydrogen production from PV process does not produce carbon dioxide emissions, which meets the environment-friendly requirements.

Efficient‌: PEM technology has gradually become the mainstream technology due to its high efficiency and small footprint‌.

Sustainable‌: Solar energy is a clean and renewable energy that meets the requirements of sustainable development.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The project complies with relevant policy requirements such as the National 14th Five-Year Plan and 2035 Development Plan, the Opinions of the Central Committee of the Communist Party of China and the State Council on Fully, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Peak and Carbon Neutrality, the Notice of the State Council on Issuing the Action Plan for Carbon Peak before 2030, the Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035), the 14th Five-Year Plan for Energy Development in Jilin Province, the Implementation Opinions on Supporting Green and Low Carbon Development and Promoting Carbon Peak and Carbon Neutrality, and the Implementation Plan for the “Hydrogen-powered Jilin” Action. In addition, Jilin Province has also introduced several policy measures to support the development of the hydrogen energy industry, encouraging the construction of the integrated demonstration project for renewable energy hydrogen production and green hydrogen self-consumption, and provided support in project approval, energy-saving review, and other aspects‌.

(2) Industrial advantages

‌Abundant natural resources‌: Songyuan City has abundant natural resources, especially traditional energy resources such as petroleum and natural gas, as well as abundant wind power and solar energy resources. Songyuan City belongs to a wind power III resource area and a solar energy II resource area. The total installed capacity of wind and solar energy reaches 38 million kilowatts, accounting for 33% of the total capacity throughout the province. It has a huge development space‌.

‌Industrial foundation‌: Songyuan City has formed a relatively completely new energy industrial chain, including wind and solar power generation and new energy equipment manufacturing industries. As of 2024, the number of new energy power generation enterprises in Songyuan City has increased to 37, the number of equipment manufacturing enterprises has reached 10, the number of hydrogen energy projects has been 10, and a complete industrial chain has been basically formed.

‌Technological innovation and leading enterprises‌: Songyuan City has actively introduced and cultivated a number of leading enterprises in the field of new energy, such as Jilin CRRC Wind Power Equipment Co., Ltd. With the support of the government, these enterprises have continuously carried out technological innovation and production capacity improvement, and have promoted the development of the entire industry‌.

To sum up, Songyuan City has obvious advantages in natural resources, policy support, industrial foundation, investment scale and output value, as well as technological innovation, etc., which can provide a solid foundation for the project.‌

(3) Location advantages

Ningjiang is located at the junction of Jilin, Heilongjiang, and Inner Mongolia provinces (regions), between the Changchun-Harbin Economic Belt and the Harbin-Daqing-Qiqihar Industrial Corridor. It borders Fuyu City to the east, Qianguo County to the west and south, and Zhaoyuan County in Heilongjiang Province across the river to the north. As an important transportation hub and logistics distribution center in Northeast China, the area is well connected by highways, railways, and waterways. Seven railways, including Beijing-Harbin and Hunchun–UlanHot Railways, pass through the city. Six highways, including Beijing-Harbin, Daqing-Guangzhou, and Tumen-Ulanhot Expressways, as well as 14 national and provincial highways, connect the east, west, north, and south. The waterway from Songyuan Port provides direct access to Jilin City, Qiqihar City, Harbin City, and Jiamusi City. It takes 40 minutes by car to reach Songyuan Chaganhu Airport, and 120 minutes to reach Changchun Airport or Harbin Airport. Songyuan Inland Port can complete all procedures such as customs declaration, inspection and quarantine within the country, and the exported goods can be directly cleared and delivered to the destination port.

(4) Talent advantages

Songyuan City has established 11 industrial colleges, scientific research internship and training bases, and doctoral workstations to support rural revitalization with 7 provincial universities including Jilin University and Jilin University of Finance and Economics. These cooperations have attracted a large number of high-level talents and college graduates to come to Songyuan for scientific research, study, work, and living. It has established a “Talent Home · Project Special Class” and connected 126 industrial projects and 83 talent projects. Through the integration platform of industry and talents, it has attracted a large number of high-level talents, which can provide sufficient talent support for the project.‌

1.2 Contents and scale of project construction

The project covers an area of 100,000 square meters and a construction area of 77,000 square meters. The main construction includes production workshop, raw material workshop, technology research and development center, office service center, power distribution room, and supporting service facilities, etc.

1.3 Total investment of the project and capital raising

The total investment of the project is 600 million yuan, including the construction investment of 450 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 435 million yuan, its profit will be 131 million yuan, its investment payback period will be 6 years (after the tax, including the construction period of 1 year) and its return on investment will be 22%.

Note: “10 thousand yuan” in the table is in RMB

1.4.2 Social evaluation

Firstly, ‌environmental protection‌ is one of the most important social benefits of hydrogen production from water electrolysis project. The product of hydrogen burning is only water, which does not produce any pollutants, so hydrogen energy is considered a clean energy. In the process of hydrogen production from water electrolysis, although electricity is required, carbon emissions can be reduced by using renewable energy such as solar and wind power, further reducing the impact on the environment‌.

Secondly, ‌optimized energy structure ‌is also an important social benefit of the hydrogen production from water electrolysis project. With the increasing global demand for clean energy, hydrogen energy, as an efficient and clean form of energy, can gradually replace traditional fossil fuels, reduce reliance on resources such as petroleum and coal, and promote the optimization and upgrading of energy structure‌.

In addition, ‌in terms of economic development‌, the hydrogen production from water electrolysis project can promote the development of related industries and increase employment opportunities. With the progress of technology and the reduction of costs, hydrogen production from water electrolysis project has been widely applied worldwide, driving the development of related industries such as electrolyzers, hydrogen storage and transportation. Meanwhile, the construction and operation of the project also require a large amount of human resources, thereby creating new employment opportunities‌.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation.

1.6 What to be invested by the foreign party

Funds, other ways can be discussed in person.

1.7 Construction site of the project

Ningjiang District

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of unit

Name: Bureau of Commerce, Ningjiang District, Songyuan City

Address: No. 519 Heping Road, Qianjin Sub-district, Ningjiang District, Songyuan City

2.2 Overview of unit

Ningjiang District is a modern city possessing the cultural heritage of Manchuria and Mongolia, with integrated long history and modern civilization, suitable landscape scenery and cultural charm, and co-promoted economic development and social harmony. It is located in the central and western part of Jilin Province, at the confluence of Songhua River, main stream of Songhua River, and Nenjiang River. This place is blessed with abundant resources and talented people, and is known as the “granary, meat warehouse, fishing village, and oil sea”. Ningjiang District is the political, economic, and cultural center of Songyuan City, covering an area of 1,313 square kilometers.

Ningjiang has a long history and culture. As early as the Western Han Dynasty, the ancient Yemack people established the first ethnic minority tribal state in Northeast China, the ancient Fuyu State. During the Tang Dynasty, it was the Fuyu Mansion of Bohai State. During the Liao Dynasty, Ningjiang Prefecture was established, and the current district name Ningjiang originated from this. In the late Ming Dynasty, it successively belonged to the Jurchen Tashan Zuowei and the Khorchin Mongolia. After the establishment of the Later Jin Dynasty, it was once again under the jurisdiction of the Manchu people (descendants of the Jurchen people) and was later known as the birthplace of the Manchu people. Here, there is not only the prosperous scene of Bohai County, but also the glorious history of the rise of the Jin Dynasty and the fall of the Liao Dynasty, as well as well-known and profound culture. The Changgangzi Bronze Cultural Relics, Boduna Liao and Jin Ancient City Ruins, Xiongjialiang Ruins and many other cultural relics in the area have proved the blood connection between the historical and cultural heritage of Ningjiang and the Central Plains, and highlighted the brilliant historical and cultural heritage of Ningjiang.

Ningjiang is rich in natural resources. The region is rich in mineral resources and is known as the “ecological town, energy hub, and frontier paradise”. There are mainly mineral resources such as petroleum, natural gas, shale oil, silica sand, refractory soil, and nitrate, etc. Ningjiang has fertile land, abundant resources, mild climate, and is suitable for the growth of various crops. It has a total cultivated area of 1.199 million mu and is rich in high-quality agricultural products such as corn, rice, soybeans, oil plants, coarse cereals, melons, vegetables, and fruits, etc. There is vast forest in the area, and 4,000 hectares of forest resources along the river have been listed as provincial-level forest parks. There are various forage species, with over 300 common grass species. It is rich in aquatic resources, and is renowned for producing over 40 types of freshwater fish both domestically and internationally. As the only central urban area in the city, there is pleasant scenery of the forest park, with the beautiful Songhua River running through the city, and tourists fishing along the Songhua River.

The economy of Ningjiang is developing rapidly. Since its establishment, the total economic output of Ningjiang District has continued to grow and its comprehensive strength has significantly improved. Ningjiang District has jurisdiction over Yadahong Industrial Concentration Zone, Songyuan Port Industrial and Trade Concentration Zone, and Tourism Development Zone along Songhua River. Yadahong Industrial Concentration Zone is a provincial-level industrial concentration zone, with a development pattern of “one district and nine parks” and a standard of “seven supplies and one leveling” within the starting area, attracting a large number of enterprises to invest and settle down. Over many years of development and construction, leading industries such as petrochemicals, equipment manufacturing, and deep processing of agricultural and sideline products, etc., as well as new industries such as tourism and leisure, and new building materials, etc. have been initially formed.

2.3 Contact method

Contact unit of the project: Project Service Center, Ningjiang District, Songyuan City

Contact person: Gao Lixiang

Tel: +86-438-3086611

Contact person of the city (prefecture) where the project is located:

Contact unit: Songyuan Municipal Commerce Bureau Investment Attraction Service Center

Contact person: Yu Lili

Tel: + 86-18004388787