China Launches First Coal-to-Chemicals Project Using Green Hydrogen

China has officially started commercial operations at its first coal-to-chemicals facility integrated with green hydrogen, marking a major milestone in the country’s push for cleaner energy and industrial transformation. The project, located in Duolun, Inner Mongolia, is operated by the state-owned Datang Group and is expected to produce 70.59 million cubic metres of hydrogen annually.
The facility represents a new model for combining renewable energy and industrial chemistry. A 150-megawatt wind and solar plant powers the operations and contributes surplus electricity to the grid. By integrating green hydrogen into the coal-to-chemicals process, the plant aims to reduce carbon emissions while maintaining high production output of syngas, which can be further converted into chemicals such as ammonia, methanol, and olefins.
Station manager Cao Guoan told state media CCTV that the plant is designated as a national hydrogen demonstration project and provides a replicable model for the green transformation of the coal chemicals industry. The project highlights China’s efforts to modernise heavy industry with low-carbon technology while reducing reliance on imported fuels and chemicals.
Coal-to-chemicals production remains a critical sector for China, supplying key raw materials for industrial and chemical use. By introducing green hydrogen, the country is taking steps to lower emissions, improve sustainability, and lead innovation in clean industrial technologies. This approach also aligns with China’s broader goals to decarbonise energy-intensive industries and meet future carbon intensity targets.
The project demonstrates that even in traditionally high-emission sectors, innovative technologies like green hydrogencan be implemented at commercial scale, offering a blueprint for other facilities in China and globally. As nations look for scalable solutions to industrial decarbonisation, this plant sets an example for combining renewable energy, hydrogen production, and coal-to-chemicals processes.
Datang Group’s initiative is expected to pave the way for further integration of green hydrogen in chemical production, offering a pathway to cleaner, more sustainable industrial operations without compromising productivity.