China's battery-grade lithium hydroxide hybrid energy storage demonstration benchmark landed! The new-type power system project in Huade, Inner Mongolia, was successfully connected to the grid.

Published: Jun 10, 2026 16:28

June 10, 2026 – Recently, the Shengde Erdengtu hydrogen energy storage station in Huade County, Ulanqab City, 90MW/360MWh electrochemical energy storage unit was successfully connected to the grid and put into operation, marking the official entry of China’s first grid-side “electrochemical energy storage + hydrogen energy storage” independent demonstration project into the commercial operation phase. The project was jointly developed by China Hydrogen Energy Group Co., Ltd. and Shanghai Xinran Compressor Co., Ltd., leveraging domestic core hydrogen energy equipment to empower the construction of long duration energy storage (LDES) systems, supporting Inner Mongolia in building a safe and efficient new-type power system model project.

According to the project planning scheme, the ESS power station has an overall total installed capacity of 100MW/400MWh, adopting a phased commissioning mode. Currently, the 90MW/360MWh electrochemical energy storage section has been connected to the grid for power generation first, while the remaining 10MW/40MWh hydrogen energy storage system has entered the final stage of equipment integrated commissioning. Among them, the full set of domestic core equipment including hydrogen compressors supplied by Shanghai Xinran has been fully installed, laying a solid hardware foundation for the project to achieve long-cycle, large-capacity green hydrogen energy storage operation.

As a national-level key demonstration project for energy transition, the project innovatively created a short-duration electrochemical energy storage + long-duration hydrogen energy storage complementary operation mode, establishing a multi-level and multi-dimensional energy storage system featuring “second-level response, hour-level regulation, and cross-day and cross-seasonal storage,” effectively addressing industry pain points such as the intermittency, fluctuations, and difficulty in absorbing new energy generation. Among them, the electrochemical ESS can achieve millisecond-level fast frequency regulation, leveling out fluctuations in wind and solar power output in real time, ensuring instantaneous grid stability; the hydrogen ESS relies on the core equipment of the Xinran XR-3.8/(10-15)-29 hydrogen compressor to convert surplus new energy electricity from the grid into green hydrogen storage, with cross-seasonal and long-cycle energy dispatch capabilities, making up for the application shortcomings of conventional short-duration energy storage.

Located in Huade County, Ulanqab City, Inner Mongolia, the project benefits from abundant local wind and PV resources, providing high-quality clean energy support for large-scale green hydrogen production. On-site, the integrated commissioning of Xinran hydrogen compressors, hydrogen storage tanks, electrolyzers, and other core equipment has been completed, opening up the entire closed-loop industry chain of hydrogen production, compression, storage, and power generation . To cope with Inner Mongolia’s extreme conditions of severe cold and sandstorms, both parties jointly optimized and iterated equipment performance, achieving 100% independent and controllable core components and completely eliminating reliance on imports of similar equipment. The equipment can operate stably in -30°C extremely cold environments , setting a benchmark for the localisation of hydrogen energy equipment and its adaptation to extreme operating conditions.

In terms of environmental protection and industrial benefits, the project boasts prominent advantages. After full-scale commercial operation, it can absorb over 500 million kWh of new energy electricity annually, reducing standard coal consumption by roughly 150,000 mt and CO2 emissions by 400,000 mt, achieving remarkable ecological emission reduction results. Meanwhile, the high-quality green hydrogen produced can be widely used as industrial raw materials, transportation fuel, and district heating, spurring the cluster development of green chemical industries such as green ammonia and green methanol, and helping Inner Mongolia build a national demonstration base for new energy equipment manufacturing and green hydrogen production and application.

The successful grid connection of this electricity-hydrogen hybrid energy storage project fully verifies the feasibility and practicality of the electricity-hydrogen coupling energy storage technology route, offering a replicable and scalable practical model for the construction of new-type power systems nationwide. The industry chain synergy model between China Hydrogen Energy Group and Shanghai Xinran Compressor also provides an excellent case for industry-university-research-application collaboration and upstream-downstream integrated innovation in the hydrogen ESS sector. With the subsequent official operation of the hydrogen energy storage system, the project will be upgraded into a comprehensive energy hub integrating grid peak shaving and frequency regulation, LDES, and green hydrogen production, continuously delivering the mature "Inner Mongolia Solution" for new energy consumption and green transformation of the energy structure.

 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
GM move into sodium batteries spurs Korea to accelerate ESS push
1 hour ago
GM move into sodium batteries spurs Korea to accelerate ESS push
Read More
GM move into sodium batteries spurs Korea to accelerate ESS push
GM move into sodium batteries spurs Korea to accelerate ESS push
U.S. automotive giant General Motors (GM) has announced an investment in U.S. startup Peak Energy and plans to advance the commercialization of sodium-ion batteries, primarily for energy storage systems (ESS), with deployment targeted after 2029. This marks the first meaningful entry of a non-Chinese automaker into the field and is prompting Korea’s battery industry to incorporate sodium-ion technology into its strategic priorities, even as it accelerates efforts to catch up in LFP. Unlike ternary batteries (NCM/NCA) and LFP, which rely on lithium, sodium-ion batteries use more abundant and lower-cost sodium as a substitute, offering advantages such as greater supply chain stability, better low-temperature performance, and enhanced safety—making them particularly suitable for large-scale energy storage applications. At the same time, increased volatility in lithium prices has further strengthened the cost competitiveness of sodium-ion batteries. Korean players including LG Energy Solution, Samsung SDI, and SK On have already accelerated their efforts, aiming to advance sample production or commercialization around 2027. Overall, GM’s entry signals that a technology pathway previously dominated by Chinese companies is becoming globalized, and it is likely to push Korean battery manufacturers to accelerate adjustments to their technology and product portfolios.
1 hour ago
[Lithium Battery: EVE Energy's H1 2026 Net Profit Up 95% To 110% YoY]
2 hours ago
[Lithium Battery: EVE Energy's H1 2026 Net Profit Up 95% To 110% YoY]
Read More
[Lithium Battery: EVE Energy's H1 2026 Net Profit Up 95% To 110% YoY]
[Lithium Battery: EVE Energy's H1 2026 Net Profit Up 95% To 110% YoY]
On June 15, EVE Energy disclosed its performance forecast for the first half of 2026. During this period, the net profit attributable to shareholders of the listed company is expected to reach between 3.130 billion yuan and 3.371 billion yuan, representing a year-on-year increase of 95% to 110%. The performance growth is primarily attributed to product iteration, service upgrades, and process optimization, with operating revenue increasing by approximately 60% year-on-year in the first half of the year. Meanwhile, in the face of upward pressure on supply chain costs, EVE Energy effectively cushioned the impact of material cost fluctuations through diversified supply chain layouts, strategic procurement, and the prudent use of financial instruments, ensuring the stability of profitability in its core business.
2 hours ago
[Lithium Battery: Phase I 30,000-Ton Battery-Grade Lithium Carbonate Project Planned For Guizhou]
2 hours ago
[Lithium Battery: Phase I 30,000-Ton Battery-Grade Lithium Carbonate Project Planned For Guizhou]
Read More
[Lithium Battery: Phase I 30,000-Ton Battery-Grade Lithium Carbonate Project Planned For Guizhou]
[Lithium Battery: Phase I 30,000-Ton Battery-Grade Lithium Carbonate Project Planned For Guizhou]
Recently, the pre-approval public notice for the environmental impact report of the Kaiyang "Phosphorus-Titanium-Iron-Lithium" Coupling Cyclic Integration Project's annual 150,000-ton battery-grade lithium carbonate project (Phase I: 30,000 tons) has been released. The project is located in Kaiyang County, Guiyang City, Guizhou Province, with an estimated total investment of 881.67 million yuan, including an environmental protection investment of 40 million yuan. The planned construction period is 18 months. The project will establish a 30,000-ton-per-year battery-grade lithium carbonate production line, with an annual by-product of 84,960 tons of anhydrous sodium sulfate.
2 hours ago
Register to Continue Reading
Gain access to the latest insights in metals and new energy
Already have an account?Sign in here