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Chinese energy giant Sinopec has introduced a hydrogen-focused venture capital fund with an initial capital injection of 5 billion yuan (approximately $690 million), marking the country’s largest investment vehicle dedicated to the hydrogen sector. The initiative underscores Sinopec’s commitment to clean energy and supports China’s national strategy to develop a robust hydrogen economy.
The fund will focus on early-stage startups and emerging technologies that specialize in critical materials, core components, and proprietary innovations with significant growth potential. According to Sinopec and local media reports, the fund aims to accelerate the development and commercialization of next-generation hydrogen solutions.
Managed by Sinopec Private Equity Fund Management—a subsidiary of Sinopec Capital—the fund has also attracted contributions from regional investment firms including Shandong New Growth Drivers Fund Management and Yantai Guofeng Investment Holding Group. Its investment scope spans the entire hydrogen value chain, from production and storage to transportation and end-use applications.
Sinopec has already acquired equity in 13 hydrogen-related firms and established post-investment mechanisms to collaborate with portfolio companies. These partnerships are expected to support real-world deployment of new hydrogen technologies and enable scalable adoption across industrial and mobility sectors.
This new fund aligns with wider government efforts to foster hydrogen innovation, such as the finance ministry’s recent allocation of 2.3 billion yuan ($321 million) for regional fuel cell pilot projects. Sinopec is also rapidly expanding its hydrogen infrastructure, operating 11 supply hubs and 144 refueling stations—positioning it as the global leader in hydrogen refueling capacity.
In terms of production, Sinopec’s flagship green hydrogen project in Kuqa, Xinjiang, is powered by a 260MW electrolyzer system and is expected to produce 20,000 tonnes annually by the end of this year. With national hydrogen demand projected to hit 35 million tonnes by 2030 and up to 200 million tonnes by 2050, the company’s efforts aim to secure a leading role in the global hydrogen supply chain.
In parallel, Sinopec is broadening its investments in clean energy. Earlier this month, it committed $500 million to the secondary Hong Kong listing of battery leader Contemporary Amperex Technology Co. Ltd. (CATL). The two companies have agreed to co-develop 10,000 battery swap stations for electric vehicles, further advancing sustainable mobility in China.
