China opens first green hydrogen chemicals plant

November 20, 2025

China has taken a major step toward decarbonizing one of its most carbon-intensive sectors with the launch of the nation’s first coal-to-chemicals facility powered by green hydrogen. State-owned Datang Group has officially begun commercial operations at its upgraded complex in Duolun, Inner Mongolia—marking a pivotal shift from traditional coal-derived hydrogen to renewable hydrogen production. State broadcaster CCTV reports that the plant is expected to generate more than 70.59 billion cubic metres of hydrogen annually, although Datang has yet to reveal current output levels. Originally commissioned in 2012, the site produced polypropylene, propylene, and methanol using coal-based syngas. The recent overhaul now anchors its operations on green hydrogen produced with on-site renewable energy.

To support the new hydrogen system, the facility is powered by a dedicated 150MW hybrid wind–solar plant, which also delivers excess clean electricity to the regional grid, increasing overall energy efficiency. The project has been recognized by Chinese authorities as a national hydrogen demonstration initiative, with CCTV describing it as a scalable model capable of driving a wider green transition across the coal chemicals industry. By integrating green hydrogen with captured CO₂ emissions from its existing processes, the plant is now equipped to produce low-carbon green methanol—a rapidly rising clean fuel option favored in the shipping and industrial sectors for its ease of storage, transport, and compatibility with current infrastructure.

China’s effort to decarbonize its massive coal-based chemical industry has gained urgency as the nation struggles to meet its 2025 carbon-intensity reduction targets. Datang’s project, along with other emerging developments such as Huadian Group’s 295MW green hydrogen-to-methanol facility in Tieling, represents a new wave of initiatives aimed at reducing dependence on carbon-heavy feedstocks while safeguarding industrial competitiveness. With green and blue methanol becoming increasingly attractive as export fuels and domestic industrial inputs, Inner Mongolia’s hydrogen-enabled transformation could become a blueprint for industrial decarbonization across China’s resource-rich regions.