Hydrogen Energy
Green Hydrogen Energy Integration and Hydrogen Storage Device and Equipment Manufacturing Project of Songyuan City
1. Introduction to the Project
1.1 Project background
1.1.1 Product introduction
This project aims to create a comprehensive hydrogen energy industrial chain that integrates hydrogen production, storage, transportation, refueling, and application. It will construct hydrogen production systems, hydrogen compression filling systems, and liquid hydrogen production and filling systems. Hydrogen storage device plays a crucial role in the hydrogen energy industrial chain. The storage, transportation, and distribution of hydrogen are the core links for the commercialization and large-scale development of the hydrogen energy industry. At present, the cost of hydrogen storage and transportation accounts for over 30% of the cost of terminal hydrogen use. Therefore, reducing storage and transportation costs is of great significance for promoting the development of the hydrogen energy industry.
By implementing the Green Hydrogen Energy Integration and Hydrogen Storage Device and Equipment Manufacturing Project of Songyuan City, we can not only achieve a high degree of integration in the hydrogen energy industrial chain, but also significantly enhance the comprehensive competitiveness and market influence of the project in this process. The introduction of integrated mode has achieved seamless connection between the production, storage, transportation, refueling, and application of hydrogen, and greatly reduced the losses and transaction costs in intermediate links, thereby significantly improving the overall operational efficiency. This efficient operation mode not only reduces operating costs, but also enhances the market competitiveness of hydrogen energy products.
In addition, the integrated model greatly promotes technological innovation and resource sharing. Through centralized research and development and resource integration, the project can maintain a leading position in the development and application of hydrogen energy technology, continuously launching forward-looking and practical new technologies and products. This continuous technological innovation and resource optimization have enabled the project to maintain its advantage in fierce market competition and enhance its sustainable development capabilities.
More importantly, the integrated model can also bring significant scale effect. After the completion of the project, it is expected to produce 20,000 tons/year of liquid hydrogen and 100 million standard cubic meters/year of high-pressure hydrogen. Such a huge production capacity can not only meet the market demand, but also further reduce the unit cost and enhance the profitability of the project through large-scale production. This scale effect and cost advantage give the project stronger bargaining power and risk resistance in the market.
To sum up, the implementation of the integrated model for the Green Hydrogen Energy Integration and Hydrogen Storage Device and Equipment Manufacturing Project of Songyuan City has not only achieved significant advantages in technology and operational efficiency, but also comprehensively improved market competitiveness and profitability, laying a solid foundation for the long-term stable development of the project. This comprehensive advantage will make the project stand out in the hydrogen energy industry and become an important force in promoting regional economic development and energy structure transformation.
1.1.2 Market prospect
(1) Project background
With the emission of a large amount of greenhouse gases and harmful gases, the human living environment is facing serious threats. Governments around the world have made emission reduction a key concern and an important task that must be implemented. The environmental challenges faced by our country are particularly severe, and the pressure to reduce emissions is enormous. Hydrogen, as a clean and efficient energy, plays a crucial role in optimizing energy consumption structure, improving atmospheric environment, and controlling greenhouse gas emissions.
China is gradually increasing the proportion of clean energy. Hydrogen is one of the most common elements in nature, mainly existing in the form of water, which is the most abundant substance on Earth. The calorific value of hydrogen is the highest among all fossil fuels, chemical fuels, and biofuels; It has excellent burning performance, ignites quickly, and has a wide flammable range when mixed with air. It has a high ignition point and fast burning speed; Hydrogen itself is non-toxic and produces minimal pollution during burning.
The application forms of hydrogen energy are diverse. It can be either burned to generate heat energy, converted into mechanical work in heat engines, or used as an energy material for fuel cells, or converted into solid hydrogen to serve as structural material. Replacing coal and petroleum with hydrogen does not require large-scale modifications to existing technological equipment, only minor modifications to existing internal burning engines are needed. Among all gases, hydrogen has the best thermal conductivity, with a thermal conductivity 10 times that of most gases, making it an excellent heat transfer carrier in the energy industry. Hydrogen, as a chemical energy, produces only water as its burning product, which is pollution-free to the environment and is truly a clean energy; Meanwhile, the water produced by burning can be recycled to produce hydrogen, making hydrogen a renewable energy. The development and utilization of hydrogen energy are of great significance for energy supply, sustainable economic development, and environmental protection.
Energy is the foundation of national economy and social development. A “clean, low-carbon, safe and efficient” energy system is not only a key guarantee for achieving the national sustainable development strategy, but also a basic condition for maintaining national economic security and ensuring sustainable and healthy operation. The “14th Five-year Plan” period is the first five years for China to embark on a new journey of building a socialist modernized country on the basis of building a moderately prosperous society in all respects. It is also an opportunity period to comprehensively promote the new energy security strategy of “four revolutions and one cooperation”, and a key period to achieve the “30.60” dual carbon goal, strengthen energy security guarantees, and accelerate green transformation.
On August 24, 2022, Jilin People’s Government released the 14th Five-year Plan for Energy Development in Jilin Province, which clearly stated the need to actively promote the “Hydrogen-powered Jilin” project. We plan to accelerate the construction of a complete industrial chain for the production, application, storage, equipment, and research and development of hydrogen energy, and strive to create a development pattern of “one zone, two axes, and four bases” for hydrogen energy. Based on the advantages of renewable resources in the western region, the scene, equipment, and location advantages in the central region, and the energy storage and trade advantages in the eastern region, we aim to create a national level demonstration zone for the integration of new energy and hydrogen energy industries. Horizontally construct the “Baicheng-Changchun-Yanbian” hydrogen energy corridor and vertically construct the “Harbin-Changchun-Dalian” hydrogen energy corridor. Actively build a national scale supply base of hydrogen production from renewable energy in western Jilin, a hydrogen energy equipment research and development, manufacturing and application base in Changchun, a diversified green hydrogen based chemical demonstration base in central and western Jilin, and a hydrogen energy trade integration demonstration base in Yanbian. We strive to have achieved a renewable energy hydrogen production capacity of 60,000 to 80,000 tons/year and a hydrogen energy industry output value of ten billion yuan by 2025.
Green hydrogen energy integration project is rapidly developing globally, especially in China. According to the Global Hydrogen Review (2024) released by the International Energy Agency, as of the end of 2023, more than 300 enterprises in China have made layout in the field of hydrogen production equipment. The total production capacity of the manufacturers of the equipment for hydrogen production from water electrolysis has reached 38 gigawatts, accounting for nearly 70% of the global production capacity. This fully demonstrates China’s rapid development trend and change potential in the field of hydrogen energy.
Given this background, the implementation of this project is of great significance for fully implementing General Secretary Xi Jinping’s important instructions on the revitalization of Northeast China, accelerating the all-round revitalization of Jilin, assisting in the construction of an ecologically strong province, and ensuring high-quality economic and social development throughout the province during the “14th Five-year Plan” period.
(2) Project prospect
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. 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 clearly stated that it was necessary to coordinate the development of the entire chain of “production, storage, transportation, and use” of hydrogen energy, promote the construction of hydrogen refueling stations, promote the research and development of low-carbon cutting-edge technologies such as renewable energy hydrogen production, and strengthen the research and development, demonstration, and large-scale application of key technologies for hydrogen energy production, storage, and application. The Notice of the State Council on Issuing the Action Plan for Carbon Peak before 2030 also emphasized the need to accelerate the research and development and demonstration application of hydrogen energy technology, and explore its large-scale application in industries, transportation, construction and other fields. It was proposed in the Outline of the 14th Five-year Plan to organize the implementation of future industry incubation and acceleration plans in the hydrogen energy and energy storage and other cutting-edge technology and industrial transformation fields, and plan and lay out a number of future industries.
The Medium and Long-term Plan for Hydrogen Energy Industry Development (2021-2035) further clarified the energy attributes of hydrogen and positioned it as an important component of the future national energy system. The clean and low-carbon characteristics of hydrogen energy will be fully utilized to promote the green and low-carbon transformation of energy-consuming terminals such as transportation and industry, as well as industries with high energy consumption and high emissions. At the same time, hydrogen energy was identified as a key direction for strategic emerging industries, and is a new growth point for building a green and low-carbon industrial system and promoting industrial transformation and upgrading. This project focuses on the integration of hydrogen production, storage, and refueling, as well as the manufacturing of hydrogen storage devices and equipment. It plays an important and far-reaching role in achieving carbon peaking and carbon neutrality goals, promoting the energy production and consumption revolution, and building a clean, low-carbon, safe, and efficient energy system. The project complies with national and local industrial development policies, is expected to generate significant economic and social benefits, and has strong operability.
As an important symbol of the hydrogen energy system, the development of hydrogen fuel vehicles is directly influenced by the research progress of vehicle-mounted hydrogen storage systems. There has been no breakthrough in the research of compact, lightweight, and high hydrogen storage density vehicle-mounted hydrogen storage system, which not only limits the development of hydrogen fuel vehicles but also hinders the construction of the entire hydrogen energy system. By now, high-pressure gaseous and low-temperature liquid hydrogen storage technologies have approached the technical indicators of the Department of Energy (DOE) and become the preferred hydrogen storage methods for the initial commercialization of hydrogen fuel vehicles. However, these physical hydrogen storage technologies have extremely high equipment requirements, leading to an increasingly prominent contradiction between performance and efficiency. The high-pressure gas storage cylinder produced in this project can provide power for hydrogen fuel vehicles, meet the requirements of the green hydrogen energy system for “efficient hydrogen storage”, and is the key to promoting the development of the hydrogen fuel vehicle industry.
In 2023, the market size of China’s hydrogen storage device industry has reached 12 billion yuan, and it is expected to have grown to 18 billion yuan by 2025, with a compound annual growth rate of about 20%. This growth is mainly driven by the following aspects:
Policy support: The Chinese government has clearly stated in the Medium and Long-term Plan for Hydrogen Energy Industry Development (2021-2035) that by 2025, the number of hydrogen fuel cell vehicles will have reached 50,000, and the number of hydrogen refueling stations will have reached 1,000. The setting of these goals provides a huge market space for the hydrogen storage device industry.
Technological progress: The continuous breakthroughs in hydrogen storage technology, especially the development of high-pressure hydrogen storage and solid-state hydrogen storage technology, have significantly improved the safety and economy of hydrogen storage devices. In 2023, the market share of high-pressure hydrogen storage technology reached 60%, while the market share of solid-state hydrogen storage technology was 30%.
Market demand: With the increasing application of hydrogen energy in transportation, industry, energy and other fields, the demand for hydrogen storage devices is also constantly increasing. In 2023, the demand for hydrogen storage devices in the transportation field reached 45%, the industrial field accounted for 30%, and the energy field accounted for 25%.
Under the joint promotion of policy support, technological progress, and market demand, the Chinese hydrogen storage device market will usher in a broader development space.
1.1.3 Technical analysis
Low-temperature liquid hydrogen storage belongs to physical storage and is a cryogenic hydrogen storage technology. After compression, hydrogen is cryogenically cooled to below 21 K (approximately -253°C) to become liquid hydrogen, which is then stored in a specially designed insulated vacuum container (Dewar bottle). The advantage of this method is that the volumetric energy of hydrogen is high, and the density of liquid hydrogen reaches 70.78 kg/m³
, which is about 850 times the density of hydrogen under standard conditions. Even under high pressure, for example, the volumetric hydrogen storage density of 80 MPa composite high-pressure hydrogen storage is about 33 kg/m³, which is far lower than the volumetric hydrogen storage density of liquid hydrogen. However, the boiling point of liquid hydrogen is extremely low (-252.78 °C), with a large temperature difference from the environment, and with high insulation requirements for hydrogen storage containers. For large-scale and long-distance hydrogen storage and transportation, low-temperature liquid hydrogen storage has significant advantages.
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
Firstly, Songyuan City has abundant wind and solar resources, and is 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, which provides a solid foundation for the development of the hydrogen energy industry.
Secondly, the new energy industry in Songyuan City is developing rapidly. In 2023, the newly installed capacity of new energy in Songyuan City reached 3.5 million kilowatts, achieving a doubling growth and forming an industrial cluster with an investment of over 100 billion yuan. Songyuan City actively seizes policy opportunities and vigorously develops the new energy industry, forming an industrial cluster centered on projects such as CRRC New Energy and Jilin Oilfield Wind and Solar Power Generation.
Thirdly, Songyuan City also has significant advantages in hydrogen energy equipment manufacturing. For example, Sungrow Hydrogen provides hydrogen production power and electrolyzer equipment in the green hydrogen-ammonia-alcohol integration project in Songyuan City, demonstrating its strength and technological level in hydrogen equipment manufacturing.
Fourthly, Songyuan Municipal Government provides strong support for the new energy industry. Songyuan City has put forward a development strategy of fully implementing the requirements of the provincial party committee and bravely being the “five pioneers”. Among them, in promoting the development of the new energy industry, it will further accelerate the construction of the “five major systems”, start and resume more than 80 new energy projects throughout the year, and complete an investment of 30 billion yuan; The scale of new energy construction will reach 3 million kilowatts, and the output value of the new energy field will reach 10 billion yuan.
(3) Location advantages
Changshan Industrial Park is located in the central area of urban development along the Hunchun–UlanHot transportation axis, and is an important node connecting Songyuan City and Baicheng City. It is 42 kilometers from Songyuan City and 176 kilometers from Changchun City to the south. It is 25 kilometers from Da’an City and the waterway port, 144 kilometers from Daqing City, and 178 kilometers from Harbin City to the north. It is 18 kilometers from Chagan Lake Scenic Area to the west and 65 kilometers from Zhaoyuan to the east. There are Hunchun–UlanHot Expressway, Changchun-Baicheng Railway, and National Highway 302 passing through the park, providing convenient transportation.
The park has convenient surrounding transportation, sound infrastructure, flat terrain, no pollution around, sufficient water and electricity supply, and developed communication, and it is suitable for investment and construction.
(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 planned area is 50,000 square meters. The construction area is 45,500 square meters, including 17,000 square meters of construction area for production, 18,500 square meters of construction area for auxiliary production facilities, 1,250 square meters of construction area for utility works, and 8,750 square meters of construction area for office and living facilities.
The project aims to build an integrated hydrogen energy industrial chain that includes hydrogen production, storage, transportation, refueling, and application. It will construct hydrogen production system, hydrogen compression and filling systems, and liquid hydrogen production and filling systems. After completion, it will produce 20,000 tons/year of liquid hydrogen and 100 million standard cubic meters/year of high-pressure hydrogen.
1.3 Total investment of the project and capital raising
The total investment of the project is 2,000 million yuan, including the construction investment of 1,500 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 1,630 million yuan, its profit will be 487.8 million yuan, its investment payback period will be 6 years (after the tax, including the construction period of 2 years) and its return on investment will be 24.3%.
Note: “10 thousand yuan” in the table is in RMB
1.4.2 Social evaluation
Promoting local economic development. By constructing hydrogen storage device and equipment project, Songyuan City can drive the development of related industries, increase employment opportunities, and enhance local economic vitality.
Promoting the optimization of energy structure. The construction of hydrogen storage device and equipment project helps to promote the optimization of energy structure, reduce reliance on traditional energy, and promote the use of clean energy. Hydrogen, as a clean energy, can reduce carbon emissions and help achieve the carbon peaking and carbon neutrality goals
Enhancing regional competitiveness. By constructing hydrogen storage device and equipment project, Songyuan City can enhance its competitiveness in the field of new energy, attract more investment and implementation of more projects, and form a good industrial agglomeration effect.
Promoting technological innovation and industrial upgrading. The implementation of the project requires the use of advanced technology and equipment, which helps to promote technological innovation and industrial upgrading, and enhance the overall technological level of the region.
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
Changshan Industrial Park
1.8 Progress of the project
The project proposal has been prepared
2. Introduction to the Partner
2.1 Basic information of unit
Name: Changshan Industrial Park Management Committee
Address: About 220 Meters Northwest of Changshan Town Middle School, Changchun-Baicheng Expressway, Qian Gorlos Mongol Autonomous County, Songyuan City
2.2 Overview of unit
Changshan Industrial Park is a city-level industrial park approved by the Municipal Party Committee and the Municipal Government in August 2003, with a planned area of 3 square kilometers; In October 2014, with the approval of the Municipal Government, the planned area was changed to 9.01 square kilometers. The park has abundant electricity, heat resources, and chemical gas resources. Among them, the Datang Changshan Thermal Power Plant generates 1.2 billion kilowatt hours of electricity per year. When the total electricity consumption index of the major electricity users in the industrial park or of the industrial park reaches a certain scale, electricity can be directly supplied to the users by the power plant through handling wheeling with approval, fundamentally reducing electricity cost; The annual heating supply capacity of Datang Changshan Thermal Power Plant is over 104,400 GJ, with a heating supply pressure of 0.3-1.5 MPa. Enterprises that require steam can be directly supplied with steam through negotiations with the manufacturer; The storage capacity of fly ash in the park is 11 million cubic meters, and the abundant fly ash resources can provide raw material guarantee for the development of new building materials; Changshan Fertilizer Plant produces 44,000 cubic meters of liquid oxygen and nitrogen, respectively, 6,100 cubic meters of liquid argon, 12,000 cubic meters of liquid carbon dioxide, 200 million cubic meters of oxygen, and 3,000 tons of morpholine annually, which can provide supporting services for large-scale industrial production. The park has convenient surrounding transportation, sound infrastructure, flat terrain, no pollution around, sufficient water and electricity supply, and developed communication, and it is suitable for investment and construction.
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