1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The Hydrogen Production from Wind and Solar Energy Integration Demonstration Project conforms to the national energy development strategy and market demand, and demonstrates outstanding economic, social, and environmental benefits.

The progress of the project will promote the prosperity of multiple industries such as equipment manufacturing, engineering construction, and operation management, bring abundant employment opportunities to Fuyu City, effectively alleviate local employment pressure, and attract talents to return, injecting new impetus into the sustained growth of the local economy.

The project will help further improve the hydrogen energy industrial chain in Fuyu City, stimulate industrial cluster effect, and enhance the competitiveness of the local industries. This will not only promote the rapid development of the hydrogen energy industry and related industries, but also attract more investment, further promoting the prosperity of the local economy.

The implementation of the integrated model has significantly enhanced the comprehensive competitiveness of the project. Compared to the hydrogen production method from single wind power or solar power, hydrogen production from wind and solar energy integration achieves efficient complementation and utilization of energy by integrating wind and solar energy resources. In terms of energy supply, the hydrogen production from coupled wind and solar energy effectively avoids the instability of single energy supply, improves self-sufficiency and safety of the energy, and ensures the continuity and stability of the hydrogen production process.

Seeing from economic benefits, the integrated model reduces the operating cost. By making centralized management and optimizing resource allocation, the equipment redundancy and energy consumption have been reduced, and the overall operational efficiency has been improved. In addition, the hydrogen production from wind and solar energy integration project also enjoys preferential policies of the government, such as tax reductions, subsidy support, etc., which has further enhanced profitability of the project.

In terms of market competition, the integrated model has enabled the project to occupy a favorable position in the hydrogen energy industrial chain. By improving the hydrogen energy industrial chain and promoting industrial cluster effect, the project not only enhances its competitiveness but also drives the development of surrounding industries, forming a good industrial ecology. This not only helps the project stand out in the market, but also lays a solid foundation for its sustainable development in the future.

1.1.2 Market prospect

(1) Project construction background

Hydrogen energy, as a green and low-carbon secondary energy with rich resources and wide application, is gradually becoming one of the key carriers for global energy transformation and development. In order to support the achievement of carbon peaking and carbon neutrality goals, promote revolutionary changes in energy production and consumption, build a clean, low-carbon, safe, and efficient energy system, and promote the high-quality development of the hydrogen energy industry, the National Development and Reform Commission and the National Energy Administration have jointly formulated the Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035). This plan deploys a series of key measures to promote the high-quality development of the hydrogen energy industry, as well as phased goals for industrial development.

Relying on its abundant wind and solar energy resources, Jilin Province fully launched the “Onshore Wind-light Three Gorges” project in 2021. According to the Action Plan of Jilin Province for Carbon Dioxide Peaking in Energy Field Before 2030 released in August 2023, it is expected that by 2030, the installed capacity of wind power and PV power generation in the province will reach 45 million kilowatts and 15 million kilowatts, respectively, becoming a core component of the national “Songliao Clean Energy Base”.

Due to the uncontrollability and time-varying nature of wind and solar power generation, the healthy and sustainable development of the new energy industry has been limited to a certain extent. Expanding the application of electric energy by hydrogen production from water electrolysis is one of the key ways to solve the problem of new energy consumption. At present, Jilin Province has been actively building three 10 million kilowatts level new energy bases of “consumption base, external transmission base, and hydrogen production base”. It has also released the Mid- and Long-term Development Plan of a Hydrogen-powered Jilin (2021-2035), which includes multiple policy measures to support the development of the hydrogen energy industry.

At the action work conference for in-depth promotion of the “Hydrogen-powered Jilin” held in Jilin Province, it was clearly proposed to accelerate the implementation of six major projects: large-scale hydrogen production from wind and solar energy consumption, large-scale hydrogen use in industrial fields, construction of diversified application ecology, efficient and convenient hydrogen energy storage and transportation, development of equipment manufacturing industry, and innovation of hydrogen energy technology system, in order to promote the development of the entire chain of “green electricity + green hydrogen + green ammonia + green alcohol”.

(2) The necessity of project construction

Improving self-sufficiency and safety of energy:

Fuyu City, located at the core of the Harbin-Dalian Economic Belt, is a hub city connecting Jilin and Heilongjiang provinces. Its energy supply mainly relies on fossil fuels, which not only poses energy security risks but also puts significant pressure on the environment. By implementing the hydrogen production from wind solar energy integration project, Fuyu City can make full use of the abundant local wind and solar energy resources, thereby improving self-sufficiency of energy and reducing reliance on external energy. The project helps to achieve localized supply and self-sufficiency of energy, effectively preventing energy crises that may arise from external energy supply disruption. This is of crucial importance for ensuring the energy supply security of Fuyu City and even the entire region.

Promoting the development of green energy:

The hydrogen production from wind solar energy integration project uses two clean energy sources, i.e., wind and solar, as raw materials to produce hydrogen from water electrolysis. This production process does not require the burning of fossil fuels, and achieves zero pollution and emission, which is fully in line with the development goal of green energy. Compared with traditional fossil fuels, the hydrogen production from wind solar energy integration project not only avoids environmental pollution and greenhouse gas emissions generated during the extraction, transportation, and use of fossil fuels, but also has a wide range of renewable raw material sources, demonstrating extremely high environmental friendliness.

Under the background of increasingly severe global climate change, reducing carbon emissions has become an urgent task for governments around the world. The hydrogen production from wind solar energy integration project, as a low-carbon or even carbon free energy production method, has demonstrated significant advantages in reducing carbon emissions.

The large-scale application of hydrogen produced by the project can significantly reduce energy consumption and environmental pollution, and promote the development of green energy in Fuyu City. This not only helps improve the local environmental quality, but also contributes to the global response to climate change.

Meeting the need for economic development in Fuyu City:

The construction of the hydrogen production from wind solar energy integration project will significantly promote the economic development in Fuyu City. The project will drive the development of multiple industries such as equipment manufacturing, engineering construction, and operation management, create a large number of employment opportunities for Fuyu City, and effectively alleviate the local employment pressure. Meanwhile, the project will also attract talent to return and inject new vitality into the sustainable development of the local economy.

With the in-depth implementation of the project, the hydrogen energy industrial chain in Fuyu City will be further improved, forming an industrial cluster effect. This will not only enhance the competitiveness of local industries, but also attract more investment, further promoting the prosperity of the local economy. The construction of the hydrogen production from wind solar energy integration project will make Fuyu City stand out in the field of new energy. By creating a hydrogen energy industrial chain with local characteristics, Fuyu City will be able to occupy a place in the domestic and international markets, attract more investment and resources, and promote higher quality development of the local economy.

To sum up, it is extremely necessary to build the hydrogen production from wind solar energy integration demonstration project

(3) Market prospect of the project

At present, the industry of hydrogen production from complementary wind-solar power generation is in a stage of rapid development, and its technology and various market links continue to evolve. The technology in the fields of wind power and PV power generation is constantly innovating, with continuously decreasing cost, and continuously expanding installed capacity. This not only promotes the feasibility and competitiveness of hydrogen production from complementary wind-solar power generation, but also continuously improves electrolysis equipment, hydrogen storage and transportation technology, and the hydrogen energy utilization technology is gradually maturing.

With the increasing global emphasis on renewable energy, the industry of hydrogen production from complementary wind-solar power generation is expected to face a broader market prospect. Policy support and fund investment from the government will promote the rapid development of industries, while technological innovation and market demand will also drive the continuous improvement of the industrial chain. From the perspective of the international market, Europe, the United States, Japan and other countries have actively promoted the development of the industry of hydrogen production from complementary wind-solar power generation, while China, as a major renewable energy country, is expected to play an increasingly important role in this industry.

With the rapid progress and continuous innovation of technology, the technology of hydrogen production from complementary wind-solar power generation is gradually reaching new heights, leading the upgrading and transformation of the industry. The continuous emergence of new materials, new processes, and new equipment has injected sustained innovation vitality into this field, laying a solid foundation for the sustainable development of the industry of hydrogen production from complementary wind-solar power generation.

The various links of the industrial chain of hydrogen production from complementary wind-solar power generation will cooperate more closely to jointly build a complete industrial ecosystem. Enterprises, research institutions, government departments and other parties will deepen their cooperation, promote the in-depth integration and coordinated development of the industrial chain, and achieve efficient and smooth operation of the entire industrial chain.

With the increasing maturity of clean energy and hydrogen technology, the demand for hydrogen production products from complementary wind-solar power generation in the market is expected to continue to grow. Especially in key areas such as transportation and energy storage, the demand for hydrogen energy products is expected to show a rapid growth trend, providing enormous market potential for the vigorous development of the industry of hydrogen production from complementary wind-solar power generation.

1.1.3 Technical analysis

(1) Hydrogen production from wind power

Hydrogen production from wind power refers to converting surplus wind power resource into mechanical energy through wind turbine rotors, and then converting the mechanical energy into electric energy and sending it to the equipment of hydrogen production from water electrolysis to achieve electricity-hydrogen conversion. The hydrogen is then compressed by a compressor and stored in a hydrogen storage tank, transported to application terminals, and used for power generation through hydrogen fuel cells or directly applied in chemical and medical industries, etc. The system of hydrogen production from wind power can be divided into grid-connected system of hydrogen production from wind power and off-grid system of hydrogen production from wind power according to its connection with the power grid. Currently, the technology of hydrogen production from coupled wind power under off grid conditions in China is still in its infancy, and grid-connected system of hydrogen production from coupled wind power is mostly adopted.

(2) Hydrogen production from PV power

Hydrogen production from PV power generation refers to supplying the electric energy converted from solar panels to an electrolytic cell system for hydrogen production from water electrolysis. The overall structure of the system is similar to that of the system of hydrogen production from wind power generation. Among them, PV power generation technology is mainly based on the photoelectric effect of semiconductors, that is, the phenomenon of generating potential differences between different parts between uneven semiconductors or semiconductors and metals. Firstly, photons are converted into electrons, optical energy is converted into electric energy, and finally voltage is formed. The main core element of PV power generation is solar cells, and there are also elements such as battery packs and controllers. The related technologies and construction scale of PV power generation in China have reached the world’s leading level, and the cost of PV power generation continues to decline. Therefore, in the clean transformation process of energy in China, the combination of PV and hydrogen will play an indispensable role in decarbonization and carbon emission reduction work.

(3) Hydrogen production from coupled wind-solar energy

The system of hydrogen production from coupled wind-solar complementary power generation consists of a wind power generation system, a solar power generation system, a device of hydrogen production from water electrolysis, and a hydrogen energy storage and utilization system. The working principle of the system of hydrogen production from wind-solar complementary power generation is to use abandoned wind and solar resources for hydrogen production from water electrolysis when there is surplus wind and solar resources in the regional power grid. When the power grid is of insufficient power, hydrogen can make power supply to the grid through fuel cells, achieving the effect of peak shaving and valley filling. Meanwhile, it can greatly improve the utilization rate and grid connection stability of wind and solar resources, making the advantages of wind and PV power generation complementary to each other.

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) Resource advantages

Fuyu City is located in the northwest of Jilin Province, on the wash plain of the Nenjiang River and Songhua River. Influenced by the monsoon, its wind energy resources are relatively abundant. Although the solar energy resources here are not as abundant as in the West China, however, there are longer sunshine hours and more stable solar radiation compared to rainy areas in South China, providing favorable conditions for the comprehensive utilization of wind and solar resources.

Fuyu City has abundant wind and solar resources, providing strong resource guarantees for the construction of the hydrogen production from wind and solar energy integration demonstration project. Meanwhile, Fuyu City also has significant advantages in geographical location, climate conditions, and transportation, providing favorable conditions for the development and utilization of wind and solar resources.

(3) Location advantages

Fuyu City is located in the Songnen Plain, in the north of Jilin Province and the northeast of Songyuan City, and on the wash plain of the Nenjiang River and Songhua River. Fuyu City is adjacent to Dehui City, Nong’an County, and Qian Gorlos Mongol Autonomous County across the Songhua River to the south and west. It faces Zhaoyuan County in Heilongjiang Province across the Songhua River to the north, faces Shuangcheng District in Heilongjiang Province across the Lalin River to the northeast, borders Yushu City across Huitanggou to the east, and connects with Ningjiang District in Songyuan City to the west.

Fuyu City has convenient transportation with multiple railways and highways. Three railways, including the Beijing-Harbin Railway, Harbin-Dalian High-speed Railway, and Songhuajiang-Taolaizhao Railway, pass through the territory; Four national and provincial highways, including the Beijing-Harbin Expressway, the Wuchang-Horqin Right Middle Banner Expressway under planning and construction, National Highway 102, and the Tieli-Horqin Right Middle Banner Expressway, run through the entire territory; Water transportation can reach Jilin City in the upstream and connect with Harbin City and Russia in the downstream.‌

(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.‌

In terms of human resources, Fuyu City has a large number of agricultural and industrial technical talents, as well as a sound education system, which can provide sufficient technical support and talent reserves for the projects Meanwhile, Fuyu Municipal Government actively promotes various preferential policies, encourages and supports the development of enterprises, and creates a favorable investment environment for investors.

1.2 Contents and scale of project construction

Covering an area of 94,833 square meters, its construction area is 34,000 square meters, including 30,000 square meters of construction area for production, 2,000 square meters of construction area for auxiliary production facilities, 1,000 square meters of construction area for office and living facilities, and 1,000 square meters of construction area for utility works.

The project has an installed capacity of 250 MW, an average annual power generation of 470 million kilowatt hours, and an annual hydrogen production of 6,000 tons.

1.3 Total investment of the project and capital raising

The total investment of the project is 1,500 million yuan, including the construction investment of 1,050 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 1,100 million yuan, its profit will be 326 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 21.7%.

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

1.4.2 Social evaluation

Reducing carbon emissions and promoting environmental protection: Wind solar hydrogen production projects can significantly reduce carbon emissions by utilizing renewable energy (wind and solar) for hydrogen production.

‌Promoting optimization of energy structure‌: The hydrogen production from wind and solar energy project effectively solves the problems of renewable energy consumption and grid-connection stability by recycling unstable energy such as abandoned wind and solar energy and converting them into hydrogen energy for storage and utilization. This not only improves the utilization rate of renewable energy, but also reduces the reliance on traditional fossil fuels, promoting the optimization and adjustment of energy structure‌.

Promoting local economic development: The hydrogen production from wind and solar energy project requires significant investment and infrastructure construction during the construction process, which directly drives the local economic growth.

Providing employment opportunities: The construction and operation of the hydrogen production from wind and solar energy project require a large amount of human resources, including job positions in technology research and development, equipment maintenance, and operation management, thus providing a large number of employment opportunities for local residents.

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

Fuyu Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of unit

Name: Fuyu Municipal Bureau of Commerce

Address: No. 789, Chunhua Road, Fuyu City　

2.2 Overview of unit

‌Fuyu Economic Development Zone‌, formerly known as Fuyu Industrial Concentration District, Fuyu Gongpengzi Industrial Concentration District, Taolaizhao Industrial Park, and Caijiagou Industrial Park, was officially integrated and promoted to become Jilin Fuyu Economic Development Zone on March 27, 2020. The development zone is located in Fuyu, Songyuan City, Jilin Province, with a planned total area of 14.78 square kilometers, including the following parts:

‌Fuyu Industrial Concentration District‌: It covers an area of 5.67 square kilometers, with the National Highway 503 as the center of its four boundaries. It extends to the edge of the built-up area of Fuyu City on the south, 200-500 meters north of north ring road on the north, the boundary between Laodangpu Village and Yaoliuhao Village in Sanchahe Town on the east, and 1,800 meters west of the Harbin-Dalian High-speed Railway on the west.

‌Fuyu Gongpengzi Industrial Concentration District‌: It covers an area of 1.38 square kilometers, and is divided into two plots. The eastern plot is centered around the National Highway 503, extending to the edge of the built-up area of Gongpengzi Town on the west, 200-350 meters south of National Highway 503 on the south, and 300-420 meters north of National Highway 503 on the north; The western plot extends to County Road 143 on the east, 570 meters south of Provincial Road 301 on the south, 200-480 meters west of County Road 143 on the west, and 1,400 meters north of Provincial Road 301 on the north.

‌Taolaizhao Industrial Park‌: It covers an area of 6.73 square kilometers, extending to Taolaizhao Town exit of Tongjiang–Sanya Highway on the west, National Highway 102 on the east, Taolaizhao-Yushu Railway on the north, and 650-1,800 meters south of Taolaizhao-Yushu Railway on the south.

‌Caijiagou Industrial Park‌: It covers an area of 1 square kilometer, extending to 600 meters east of the Beijing-Harbin Railway on the west, Huitanggou on the east, 1,200 meters north of Jidong No. 1 Road on the north, and Jidong No. 1 Road on the south.‌

2.3 Contact method

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