Hydrogen energy is widely acknowledged as a critical pathway for decarbonization, due to zero-carbon emissions throughout its lifecycle and high mass energy density. With its green hydrogen (GH2) innovation, Baofeng Energy has achieved hydrogen fuel substitution within its coal chemical operations, generating growth opportunities for both traditional produces (e.g. olefins) and other chemicals, while leading the chemical industry towards decarbonization. This is despite green hydrogen’s slow commercialization, which is currently hindered by its immature economic viability. Globally it is viewed as a future technology awaiting breakthroughs in either technical advancement or business models. Baofeng operates one of China’s first large-scale solar- powered hydrogen and oxygen production plants, which replaces traditional coal-based hydrogen and oxygen production. The electrolysers in Baofeng’s plants, with a single-unit capacity of 1,000 Nm³/h, can produce green hydrogen with a purity of over 99%. The generated GH2 and oxygen directly supply chemical systems to produce a series of chemicals, including not only low-carbon olefins, but also green and low-carbon chemicals such as methanol and ammonia, demonstrating new business opportunities and growth potential. Baofeng’s chairman Yanbao Dang notes: “As an innovative chemical enterprise, we are committed to replacing all raw materials by new energy – addressing emissions while advancing sustainable energy for humanity.” In future, Baofeng aims to accelerate fossil energy replacement at a 5% annual growth rate via clean energy substitution, with plans for 3.1 billion cubic metres of annual GH2 production.CASE STUDY 8 Baofeng Energy – trialling green hydrogen substitution Source: expert interview with Baofeng. Asia’s Carbon Markets: Strategic Imperatives for Corporations 40

Asia's Carbon Markets Strategic Imperatives for Corporations 2025