Construction has commenced on a $1.5 billion green hydrogen project in China that includes a hydrogen-powered power station.

A Chinese automaker is developing a comprehensive facility in Xinjiang that will generate approximately 40,000 tonnes of green hydrogen annually, making it the largest hydrogen energy storage project in the world. Construction has begun on a massive $1.5 billion green hydrogen initiative, which includes a 200 MW hydrogen-powered power station for grid backup and six hydrogen filling stations to fuel 600 trucks.

The project, aptly named the Grove Mulei Hydrogen Energy Storage Peak Shaving Power Station and Integrated Wind, Solar, Hydrogen, and Vehicle Storage Project, is being built by Grove Hydrogen Energy Technology Group in Mulei County, Xinjiang. It will harness a combination of wind and solar energy to produce around 40,000 tonnes of green hydrogen each year.

Although the specific capacity of the electrolysers has not been disclosed— a common practice in China— approximately 400 MW will be needed to achieve that hydrogen production level. The hydrogen produced will be stored on-site and used to power the 200 MW/1,600 MWh peaker plant, which will provide backup power to Xinjiang’s renewable-rich electricity grid during periods when wind and solar generation fall short of demand. The 1,600 MWh capacity allows the plant to deliver 200 MW of power for up to eight consecutive hours.

Grove has not specified whether the wind and solar power for the project will be sourced from new installations or existing ones. However, Xinjiang is known for generating more renewable energy than its grid can accommodate, with curtailment rates reaching up to 29% in recent years. Therefore, it is likely that the project will utilize existing green energy sources to produce hydrogen.