China is nearing completion of its first hydrogen production system via electrolysis through an onshore wind farm, with the energy to help in powering the 2022 Beijing Winter Olympics.

The project — in the northern Hebei province's Guyuan county — is 95% complete and will soon begin commissioning activities. It is part of China's wider plan to cut carbon emissions.

The hydrogen project started in 2015 with investments totalling 2.03 billion yuan ($310.8 million) from Hebei Construction & Investment Group. It includes an onshore wind farm with power generation capacity of 200 megawatts and a hydrogen production system by electrolysis with capacity of 10 MW.

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Electrolysis, as an option for hydrogen production from renewable resources, is the process of using electricity to split water into hydrogen and oxygen.

When completed, the project will be able to produce 17.52 million cubic metres per annum of hydrogen, which is expected to generate annual revenue of 260 million yuan.

The production facilities could be tied directly to renewable or other non-greenhouse gas-emitting forms of electricity production.

Local officials said the project is in part intended to provide clean energy for facilities in Hebei during the Winter Olympic Games to be held there in 2022.

Based on the hydrogen industry development strategy in Hebei province, part of the hydrogen produced from the Hebei project's wind farm will be used to replace oil and gas in industrial applications as well as to power cars.

China's second-largest energy company Sinopec is also building a hydrogen processing unit at its Yanshan petrochemicals complex in Beijing with a production capacity of 2000 cbm per hour of hydrogen gas. It is intended for hydrogen fuel cell vehicles that will be put into service during the 2022 Games.