Launch of China¡äs First Green Hydrogen Coupled Low Grade Heavy Oil Demonstration Project
2026-4-22
Recently, during the High-Level Forum on Energy Security and the New Western Energy Corridor, China¡äs first industrial demonstration project for synthetic crude oil production via "green hydrogen + low-grade heavy oil" ¡ª the 1.6 million-tonne-per-annual industrial demonstration project for high-efficiency upgrading of imported solid asphalt using all-green energy (hereinafter referred to as the "Demonstration Project") ¡ª was officially launched.
It is understood that the demonstration project is located in the Tacheng Prefecture of Xinjiang, with a total investment of 6.734 billion yuan. Based on the All-Conversion Slurry Bed Hydrogenation Deconstruction Technology for Low-Grade Heavy Oil (ASHS) developed by the Dalian Institute of Chemical Physics, Chinese Academy of Sciences, the project uses green power generated from wind and solar energy in Xinjiang to produce green hydrogen, which is then used to process low-grade heavy oil such as imported solid asphalt from Central and Northern Asia, with an annual output of 1.6 million tons of low-carbon synthetic crude oil.
An expert introduced that the ASHS technology breaks through the bottlenecks of conventional heavy oil processing. By innovatively adopting nano-dispersed molybdenum catalysts and airlift loop slurry bed reactors, it achieves nearly full conversion of traditionally unutilizable low-grade heavy oil into high-quality low-carbon synthetic crude oil, opening up a brand-new pathway for energy conservation, carbon reduction in the refining and chemical industry, and high-value utilization of heavy resources.
The technology has now been included in the Catalogue of Advanced Energy-Saving and Carbon-Reduction Technologies for the Oil Refining Industry issued by the National Energy Administration. The project is equipped with 1.5 GW of wind and solar power generation facilities as well as water electrolysis hydrogen production units, with an annual output of approximately 65,000 tonnes of green hydrogen. It will serve as an important benchmark for the large-scale commercial application of green hydrogen in the industrial sector.
In terms of international energy supply chain cooperation, the demonstration project will adopt an innovative model of containerized transportation of solid asphalt to revitalize the return cargo capacity of the China-Europe Railway Express. It will establish a new paradigm for energy industrial cooperation featuring "low-grade heavy oil resources from Central and Northern Asia, green wind and solar power in western China, independent core technologies, and the domestic refining and chemical market". This initiative effectively addresses key industry challenges such as difficulties in new energy accommodation, high carbon emissions in traditional refining and chemical sectors, and inefficient utilization of heavy oil resources. It plays an important demonstrative role in reducing China¡äs external dependence on crude oil, supporting Xinjiang¡äs development as a "three bases and one channel" strategic hub, and advancing energy cooperation under the Belt and Road Initiative.
It is understood that the demonstration project is located in the Tacheng Prefecture of Xinjiang, with a total investment of 6.734 billion yuan. Based on the All-Conversion Slurry Bed Hydrogenation Deconstruction Technology for Low-Grade Heavy Oil (ASHS) developed by the Dalian Institute of Chemical Physics, Chinese Academy of Sciences, the project uses green power generated from wind and solar energy in Xinjiang to produce green hydrogen, which is then used to process low-grade heavy oil such as imported solid asphalt from Central and Northern Asia, with an annual output of 1.6 million tons of low-carbon synthetic crude oil.
An expert introduced that the ASHS technology breaks through the bottlenecks of conventional heavy oil processing. By innovatively adopting nano-dispersed molybdenum catalysts and airlift loop slurry bed reactors, it achieves nearly full conversion of traditionally unutilizable low-grade heavy oil into high-quality low-carbon synthetic crude oil, opening up a brand-new pathway for energy conservation, carbon reduction in the refining and chemical industry, and high-value utilization of heavy resources.
The technology has now been included in the Catalogue of Advanced Energy-Saving and Carbon-Reduction Technologies for the Oil Refining Industry issued by the National Energy Administration. The project is equipped with 1.5 GW of wind and solar power generation facilities as well as water electrolysis hydrogen production units, with an annual output of approximately 65,000 tonnes of green hydrogen. It will serve as an important benchmark for the large-scale commercial application of green hydrogen in the industrial sector.
In terms of international energy supply chain cooperation, the demonstration project will adopt an innovative model of containerized transportation of solid asphalt to revitalize the return cargo capacity of the China-Europe Railway Express. It will establish a new paradigm for energy industrial cooperation featuring "low-grade heavy oil resources from Central and Northern Asia, green wind and solar power in western China, independent core technologies, and the domestic refining and chemical market". This initiative effectively addresses key industry challenges such as difficulties in new energy accommodation, high carbon emissions in traditional refining and chemical sectors, and inefficient utilization of heavy oil resources. It plays an important demonstrative role in reducing China¡äs external dependence on crude oil, supporting Xinjiang¡äs development as a "three bases and one channel" strategic hub, and advancing energy cooperation under the Belt and Road Initiative.