China's first green hydrogen project, located in Hubei province, has begun production, marking a significant milestone in the country's transition to renewable energy. The USD 476 million facility, operated by Daye Green Power, utilizes both PEM and alkaline electrolysers in joint operation, making it a unique and innovative project. The project began production on May 6, 2025, and is expected to play a crucial role in reducing the country's carbon footprint.

Project Overview

The Daye Green Power project is situated in Daye city, on the site of an abandoned mine, and has a total investment of USD 476 million. The facility uses Sungrow electrolysers, which are designed to produce green hydrogen through the electrolysis of water. The project's innovative approach to using both PEM and alkaline electrolysers in joint operation allows for a more efficient and cost-effective production process. Morover, this approach also enables the facility to produce hydrogen at a larger scale, making it a significant player in China's emerging green hydrogen market. The project's location in Hubei province provides access to abundant renewable energy resources, which are used to power the electrolysers.

The facility's proximity to major industrial centers also makes it an ideal location for supplying green hydrogen to various industries. The use of underground cavern storage at the facility allows for the efficient storage of produced hydrogen, making it a key component of the project's overall design. The Daye Green Power project is expected to produce a significant amount of green hydrogen, which will be used to fuel vehicles, power industrial processes, and generate electricity. The project's output will help reduce China's reliance on fossil fuels and decrease greenhouse gas emissions. As the country's first green hydrogen project using PEM and alkaline electrolysers in joint operation, it sets a precedent for future projects and demonstrates the feasibility of large-scale green hydrogen production.

Environmental Benefits

The Daye Green Power project is expected to have significant environmental benefits, as it will produce green hydrogen using renewable energy sources. The use of green hydrogen as a fuel source will reduce greenhouse gas emissions and help mitigate climate change. The project will also help improve air quality in urban areas, as green hydrogen can be used to fuel vehicles and power industrial processes. As the industry continues to grow, it is likely that we will see more projects like the Daye Green Power facility being developed in other regions. The environmental benefits of the Daye Green Power project are significant, and it sets a precedent for future green hydrogen projects in China.

Also Read: Top 10 Green Hydrogen Projects in the World (2025)

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