Inner Mongolia Hydrogen Electric Technology Co has commenced construction on its grid-side independent energy storage demonstration project in Dalad Banner.
With a total investment of 150 million yuan ($21 million) and spanning 42 mu (2.8 hectares), the project features a fully integrated hydrogen energy system, including water electrolysis for hydrogen production, hydrogen storage, and hydrogen fuel cell power generation.
It features an energy storage capacity of 2 megawatts/4 megawatt-hours, equipped with 12 sets of 1,000 normal cubic meters alkaline electrolyzers, two sets of 1 MW hydrogen fuel cell power generation systems, and 90,000 Nm³ of hydrogen storage facilities.
Unlike lithium-ion batteries, which provide 2 to 4 hours of short-term regulation, pure hydrogen energy storage enables multi-day, long-duration power shifting, mitigating the intermittency and volatility challenges inherent in renewable energy generation. This makes it particularly valuable in power systems with high renewable penetration.
The project adopts a clear-cut business model, with revenue streams coming primarily from two sources: participation in grid peaking, frequency regulation, and other ancillary services, and the supply of surplus green hydrogen to industrial users such as chemical and metallurgical enterprises in the park, enabling high-value local consumption of clean energy.
Upon completion, the project is expected to generate an annual output value of 63 million yuan, with a payback period that remains competitive within the industry.
Marking a critical step in the company's transition from technology validation to commercial operations, the project will generate core data assets covering system efficiency and the operational economics of a hundred-megawatt-scale pure hydrogen storage facility, providing valuable experience for future scaling and replication.
With this project as a launchpad, Inner Mongolia Hydrogen Electric Technology Co will continue to deepen its presence in the long-duration energy storage sector, striving to deliver a profitable and replicable business model for the full commercialization of the hydrogen industry chain.
