Several reports indicate that the project is expected to cost about 1.4 billion yuan ($198 million) and produce 160 million standard cubic meters of hydrogen per year.
The project also involves the creation of hydrogen refuelling stations and a collaboration with urban hydrogen-powered busses.
Baofeng Energy, which is primarily a coal mining and chemical production company, said the project is a demonstration of how to move away from fossil-fuel-based energy and that it sees great potential in hydrogen.