Energy Insider: China Doubles Down on Energy Security, Sinopec Makes Green Hydrogen From Seawater
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In this week’s Caixin energy wrap, we analyze China’s biggest climate and energy news on policy, industry, projects and more:
• China bolsters energy self-sufficiency
• E-bike batteries to be recycled properly
• Sinopec makes hydrogen from seawater
• Xinjiang connects mega solar farms to the grid
In focus: China meets more than 80% of its energy demand
What’s new: China has strengthened its effort to ensure energy security by ramping up fossil fuel production at home, state-run news agency Xinhua reported, citing Wang Hongzhi, the head of the National Energy Administration (NEA).

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- China is enhancing energy self-sufficiency, meeting over 80% of its demand domestically by ramping up fossil fuel and clean energy production.
- The MIIT has proposed a nationwide recycling system for e-bike batteries, making manufacturers responsible for proper disposal.
- Sinopec's Qingdao refinery has pioneered renewable hydrogen production from seawater, while Xinjiang connects its mega solar farms to the grid, promoting energy transformation and desert management.
In the latest Caixin energy wrap, several significant developments in China’s energy sector were highlighted, focusing on policy, industry, and sustainability efforts. [para. 1] China is working to boost energy self-sufficiency, promoting the recycling of e-bike batteries, advancing hydrogen production from seawater, and connecting mega solar farms in Xinjiang to the national grid. [para. 2][para. 3][para. 4][para. 5]
China has made strides in meeting more than 80% of its energy demands domestically, largely due to increased fossil fuel production. As per the National Energy Administration, the country generated a significant amount of coal, oil, and gas this year. Specifically, coal production reached approximately 4.76 billion tons, surpassing last year’s total by 50 million tons. Concurrently, renewable energy efforts have not been neglected, with more than 85% of new power installations using renewable sources. Furthermore, the total of nuclear power plants operating, under construction, or planned stands at 113. This dual approach ensures a balanced energy transition and security, with a continued yet cautious development of fossil fuels. [para. 6][para. 7][para. 8]
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Overall, these developments underscore China's multifaceted approach to evolving its energy landscape by balancing domestic resource use, renewable energy integration, environmental responsibility, and innovative technological applications. [para. 22]
- China Petroleum & Chemical Corporation (Sinopec)
- China Petroleum & Chemical Corporation (Sinopec) in Qingdao, Shandong province, has become the first Chinese factory to produce renewable hydrogen using seawater. The plant uses electricity from an offshore solar farm to power electrolyzers customized for salty water, generating 20 cubic meters of renewable hydrogen per hour. This hydrogen will be utilized for refining oil or powering hydrogen vehicles, contributing to China’s hydrogen industry by utilizing renewable power and conserving freshwater.
- China National Offshore Oil Corporation Ltd.
- China National Offshore Oil Corp. Ltd. has announced a breakthrough in turning seawater into hydrogen, developing a machine capable of producing 200 cubic meters of renewable hydrogen per hour. This development broadens the resources available for China’s hydrogen industry and supports the absorption of renewable power while conserving freshwater.
- China Green Development Investment Group Co. Ltd.
- China Green Development Investment Group Co. Ltd. is the developer of a major solar farm in Ruoqiang county, on the edges of the Taklamakan Desert in the Xinjiang Uyghur autonomous region. The project, with a capacity of four gigawatts, is currently the largest desert-based solar farm to be commissioned in China.
- China Three Gorges Corporation
- China Three Gorges Corporation has developed a solar energy project in Hami, Xinjiang, which includes both a solar photovoltaic system and a concentrating solar power system. This project, now generating power, utilizes concentrating solar power to focus sunlight onto a receiver, allowing the power to be used immediately or stored. The initiative aligns with China's drive to build desert-based renewable energy bases to combat desertification and create jobs.
- 2024:
- More than 80% of China's energy demand was met by domestic production.
- Dec. 18, 2024:
- A draft regulation by the MIIT was published requiring e-bike manufacturers to set up dedicated agencies for recycling spent lithium batteries.
- Dec. 18, 2024:
- Sinopec announced its factory in Qingdao, Shandong, produced renewable hydrogen from seawater, using offshore solar-generated electricity.
- Dec. 18, 2024:
- The Ruoqiang county solar farm, with a capacity of four gigawatts, was connected to the grid as China's largest desert-based solar farm.
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