"About 80 percent of the generated solar electricity is used for water electrolysis to produce hydrogen, while the remaining 20 percent is fed into the grid. The annual hydrogen production reaches 10,000 tons, with an additional byproduct of 85,000 tons of oxygen. The hydrogen production facility consists of 15 electrolyzers with a maximum load of 90,000 kilowatts, which satisfies 10,000 tons of annual hydrogen production target," said Ji Mengbo, the technical director of the Narisong photovoltaic hydrogen project.

Ji added that it achieves overall profitability through equal substitution and power settlement with the grid.

Photovoltaic power generation is stochastic, fluctuating and intermittent, while hydrogen production requires a stable power supply. To ensure the power demand of China's first 10,000-ton new energy hydrogen production, Xuejiawan power supply company of Inner Mongolia Electric Power CO Ltd has invested 233 million yuan ($32 million) into the construction of the Andinghao 220 kV substation project.