China has completed construction of its first factory-scale research project for hydrogen production from seawater, Sinopec announced Wednesday.

The project, located in Qingdao, east China's Shandong Province, combines direct seawater electrolysis with green electricity-based hydrogen production. It reports an output of 20 cubic meters of green hydrogen per hour, according to the company.

Operating in a factory environment, the project utilizes green electricity generated by Sinopec Qingdao Refining & Chemical Co., Ltd.'s offshore photovoltaic power station.

Seawater is split into hydrogen and oxygen through specialized electrolyzers. The produced hydrogen is integrated into the company's pipeline network, where it is used for refining operations or fueling hydrogen-powered vehicles, according to the company.

Green hydrogen, produced using renewable energy sources such as solar and wind energy, barely emits greenhouse gas during production.

Direct seawater electrolysis allows unstable green electricity to be converted into green hydrogen, which is easier to store and transport. It also helps to conserve freshwater and advance the hydrogen energy industry.