The photo is sourced from airliquide.com
The complex, with a total capacity of 70,000 cubic metres of hydrogen per hour, will be equipped with the technology for capturing and recycling carbon dioxide to produce carbon monoxide used for production of polymers and detergents. This solution will save 350,000 tons of CO2 annually, which is comparable to the annual emissions from electricity generation for one million Chinese households.
Hydrogen and carbon monoxide will be bought by the companies operating in the park, including polymer manufacturer Covestro China and Shanghai Lianheng Isocyanate Company specialising in polyurethane production. The project will expand the production capacity of SCIPIG, which already has two hydrogen and six gas fractionation plants. “SCIPIG’s new investment will play an important role in reducing carbon emissions in the park,” the Market Watch business platform quotes Ma Jing, the Administrative Committee Director of the Shanghai Chemical Industry Park. “SCIP will, as always, assist in facilitating the construction and operations of this project and in promoting the use of low-carbon hydrogen to contribute to our common carbon peak and carbon neutral objectives,” he said.
The unique character of the SCIPIG project is based on the use of the CO2 capture, utilisation, and storage (CCUS) technologies for hydrogen production from fossil fuels. According to the International Energy Agency (IEA), the share of this method in the structure of global hydrogen supply was 0.7% in 2020. The most popular were gray (59%) and brown (19%) hydrogen produced from gas and coal without application of the CCUS technology. The share of all other sources of hydrogen production was 21.6%.
According to the Bloomberg New Energy Finance, the unit cost of blue hydrogen production ranges from $2.1 to $2.4 per kg, depending on the cost of natural gas. The same figure for gray hydrogen ranges from $1.5 to $1.8 per kg, and for green hydrogen produced by electrolysis using renewable energy sources – from $3.3 to $6.5 per kg.