(ECNS) -- China is the only country in the world producing hydrogen from coal on a large scale, according to a report published at a side event of COP27 on Wednesday.
China produced about 33 million metric tons of hydrogen in 2020, accounting for about 30 percent of global output. About two-thirds of hydrogen in the country was produced from coal, the report said.
It is important to deploy low-emission hydrogen-producing processes to contribute to China's carbon neutrality targets, according to the report.
China is embedded with rich coal resources and few oil and gas resources. In areas with abundant coal resources, sound carbon dioxide sealing conditions, and limited renewable energy resources, Carbon Capture, Utilization and Storage(CCUS) technology will help produce hydrogen with lower emissions and at a lower cost.
Besides, it can drive the construction of carbon dioxide transportation and sealing infrastructure.
China Hydrogen Alliance forecasts that China would demand 37 million metric tons of hydrogen by 2030, and over 90 million metric tons by 2060. Many hydrogen production plants through coal are under construction, for which CCUS will play a key role in emission reduction, said the report.
It pointed out that capturing carbon dioxide and hydrogen are key raw materials for future synthetic fuel.
Although the current production cost is high, synthetic fuel is one of the few emission-reduction solutions for long-distance transportation, especially for the aviation industry. In addition, carbon dioxide can also be used to increase the oil harvesting rate, produce chemicals and building materials, said the report, jointly written by the International Energy Agency, Administrative center for China's Agenda 21, China Energy Group, and Beijing Institute of Technology.