Located in Ulanqab, the first phase of the plant is expected to produce at least 10,000 tonnes of green hydrogen per year, which will be stored and potentially liquefied on-site for distribution.

China Coal Green Energy will invest in and construct the renewable power and hydrogen generation systems. The subsidiary was established by the state-owned National Coal Group to “support the dual-carbon strategy.”

The preliminary agreement marks the group’s entry into renewable-powered hydrogen through its subsidiary.

Jiangsu Guofu Hydrogen Energy Equipment (GuoFuHEE) will supply key equipment, including electrolysers, and manage hydrogen sales from the plant.

A hydrogen liquefaction unit will be added to cut transport costs and stabilise pipeline operations.

As the agreement remains at the framework stage, no timeline has been set for a final investment decision or construction start.

“This collaboration is a key initiative for GuoFuHEE to expand its green hydrogen supply chain and strengthen its full-industry-chain layout,” the firm’s statement said.

“It not only contributes to establishing Ulanqab as a large-scale demonstration benchmark for wind-solar hydrogen generation but also provides a replicable pathway for the high-quality development of the hydrogen energy industry through complementary advantages and full-chain synergy.”

GuoFuHEE is among a growing number of Chinese hydrogen companies expanding globally, having recently received Chilean government funding to establish local manufacturing.

S&P Global Commodity Insights reports that China continues to dominate the global green hydrogen market, with national capacity rising to 2GW, around 70% of global electrolyser installations, as projects elsewhere lose momentum.