Yunnan Introduces New Green Electricity Consumption Policy, Offering Up to 13 Yuan Subsidy per Kilogram for Green Hydrogen

According to a February 28 announcement from the Yunnan Provincial Development and Reform Commission, the commission, along with the Department of Industry and Information Technology and the Energy Bureau, jointly issued the “Several Measures to Promote Green Electricity Consumption in Yunnan.” The document explicitly supports the demonstration and development of the green hydrogen (ammonia-alcohol) industry, offering a subsidy of up to 13 yuan per kilogram for three consecutive years after production begins to integrated new energy hydrogen (ammonia-alcohol) production projects with an annual output of 100 tons or more of green hydrogen.

The policy proposes supporting the integrated development of new energy and hydrogen (ammonia-alcohol) production, allowing renewable energy electrolysis water hydrogen production projects to be built outside chemical industrial parks. Wind-solar hydrogen production integrated projects will be configured at a 6:4 ratio of wind to solar power, with the proportion of grid-connected electricity gradually reduced to 20% in the first three years after production begins. Additionally, green electricity hydrogen production, synthetic ammonia, methanol, and sustainable aviation fuel projects will be deployed in key regions such as Qujing, Zhaotong, and Honghe, with a batch of demonstration projects launched annually before 2028. In northwestern Yunnan, existing new energy projects will be promoted for dedicated hydrogen production lines, expanding application scenarios such as hydrogen-powered heavy trucks, hydrogen blending in gas pipelines, and hydrogen-ammonia blending in thermal power units. The construction of the “Hydrogen Corridor” along the Western Land-Sea New Corridor and hydrogen refueling infrastructure will also be accelerated.

Driven by international shipping decarbonization demands, green hydrogen production for green ammonia and green methanol has become a key direction in the hydrogen energy industry. However, high costs remain a constraint: institutional calculations show that current electrolysis water hydrogen production costs range from 19.2 to 35 yuan per kilogram, significantly higher than gray hydrogen. Industry insiders note that multiple regions have introduced green hydrogen subsidies, with some as high as 20 yuan per kilogram. Yunnan’s 13 yuan per kilogram subsidy will effectively enhance project economics.

China International Capital Corporation (CICC) points out that global shipping giants have signed numerous long-term agreements for green methanol, with related production capacity expected to enter a rapid expansion phase by 2026. Currently, companies such as China Tianying, Shanghai Electric, and Goldwind Technology are deeply engaged in the green hydrogen-ammonia-alcohol sector.

Among them, China Tianying is accelerating two major hydrogen-based energy integrated projects in Liaoyuan, Jilin, and Anda, Heilongjiang. The Liaoyuan project is scheduled for completion by the end of June and operational by the end of the third quarter. The company has secured the world’s first electric methanol supply order and is in talks with several international energy and shipping companies for cooperation. Shanghai Electric’s Taonan green methanol project has already commenced production, and Goldwind Technology has signed long-term green methanol procurement agreements with Maersk and Hapag-Lloyd, among others.