Construction Begins on $3bn Green Hydrogen-to-Aviation Fuel Plant in Northeast China

China Energy Engineering Group, a state-owned enterprise, has initiated construction on a large-scale green hydrogen project in northeast China, aimed at producing 200,000 tonnes of methanol and 300,000 tonnes of synthetic aviation fuel (eSAF) annually. The project integrates wind, solar power, electrolysis, and biomass technologies.

The first phase, with an investment of 6 billion yuan ($843 million), will combine 450MW of wind power with electrolysers, solar panels, and biomass gasification technology to produce 100,000 tonnes of eSAF per year by 2027. Biomass gasification heats plant matter to generate hydrogen and carbon dioxide, which are then combined to produce synthetic fuel via Fischer-Tropsch synthesis.

By utilizing biomass-derived CO2, which comes from the carbon absorbed by plants, the eSAF produced is considered carbon-neutral. The project, located near Shuangyashan in Heilongjiang province, is described by local authorities as the world's first wind-solar-hydrogen biomass aviation fuel demonstration project of its scale. It incorporates advanced green technologies, including Fischer-Tropsch synthesis and off-grid energy systems.

The full project will cost 20.8 billion yuan ($3 billion) and is expected to significantly contribute to the production of sustainable aviation fuel. Representatives from Shanghai Airport Authority, which operates the city’s airports, were present at the groundbreaking ceremony, hinting at potential partnerships for fuel supply.