Xinjiang Lays Out Green Hydrogen Industry to Accelerate the Formation of the Green Hydrogen-Ammonia-Methanol Industry Chain

Published: Aug 25, 2026 10:07

Recently, the Xinjiang Uygur Autonomous Region Development and Reform Commission, jointly with the Department of Industry and Information Technology and the Department of Commerce, issued a policy document focusing on expanding effective investment in new energy and improving utilization efficiency, introducing multiple supporting measures to further broaden the development pathway for the green hydrogen, ammonia, and methanol industry, and accelerating the formation of the local entire industry chain for green hydrogen-based energy in Xinjiang Uygur...

This policy document, numbered Xin Fa Gai Neng Yuan [2026] No. 593, clearly states that the region should seize the advantage of abundant wind and solar power resources, vigorously develop the hydrogen energy and green liquid fuel industries, and establishthe green hydrogen, ammonia, and methanol production site at the northern foothills of the Tianshan Mountains. Xinjiang has rich wind and solar energy reserves, providing unique resource conditions for developing water electrolysis for hydrogen production and the hydrogen, ammonia, and methanol industry. Relying on large-scale new energy electricity, it can offer low-cost power guarantees for producing green hydrogen, green ammonia, and green methanol, supporting the low-carbon transformation of the local chemical industry.

The document takesgreen hydrogen substitution and carbon emission reductionas the core guiding principles for industrial development. On the financial support front, it actively seeks policy funds such as the central budget investment for energy conservation and carbon reduction special projects and local government special bonds, providing support for the implementation of various green hydrogen, ammonia, and methanol industrial projects, alleviating project construction funding pressures, and accelerating the start of construction for a number of qualified demonstration projects.

In terms of application scenarios, the policy proposes to continuously expand the industrial application boundaries of green hydrogen, promoting its deep integration into high-energy-consuming key sectors such as coal chemicals, petrochemicals, metallurgy, and transportation. By replacing fossil-based hydrogen production with green hydrogen, traditional high-energy-consuming industries can effectively reduce carbon emissions during production, making it an important technical pathway for achieving carbon reduction and emission reduction in the industrial sector.

At the same time, the local government is advancing the construction of the national-level hydrogen energy demonstration project in Zhundong, which couples efficient green hydrogen production with coal-to-natural gas. This project has been selected into the national hydrogen energy pilot list in the energy field and is a benchmark project for the coupled development of green hydrogen and modern coal chemicals in Xinjiang Uygur... Through the pilot implementation of demonstration projects, the region will explore feasible models for integrating wind and solar electrolytic hydrogen production with coal chemical processes, accumulate technical and operational experience, thereby driving the development of upstream and downstream supporting industries for hydrogen energy, and solidifying the foundation of Xinjiang's hydrogen-based energy industry.

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Xinjiang Lays Out Green Hydrogen Industry to Accelerate the Formation of the Green Hydrogen-Ammonia-Methanol Industry Chain - Shanghai Metals Market (SMM)