Hydrogen case study: operational efficiency and electrolyser technology at the Sinopec Kuqa project

In December 2023, Sinopec reported that its Kuqa project produced 2,010 tonnes (22.36 million m3) of green hydrogen, which was transported to the end-user Sinopec Tahe Refining & Chemical facility. It is expected that by the fourth quarter of 2025 the hydrogen volume from Kuqa will reach 20,000 tonnes per annum (tpa), with the electrolyser operating at 51% capacity. Based on these figures, the project operated at around 20% of its rated capacity in 2023.

What are the likely reasons for Kuqa’s lower-than-expected actual yield in H2 2023? How would the levelised cost of hydrogen (LCOH) be affected if the Kuqa project reaches announced output? And how are Chinese electrolyser OEMs reacting to the project?

Drawing on insight from Lens Hydrogen, I explored this project in detail in a new case study. This includes:

• The possible impact of insufficient power supply and electrolyser underperformance at low load on operational output.
• Why the Kuqa project’s LCOH could see an increase of up to 20% to reach its rated capacity.
• Measures Chinese electrolyser OEMs are taking to improve their electrolyser solutions.

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