The state-owned energy company has announced a new fund to invest in hydrogen startups across the value chain.
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Chinese state-run oil and gas company Sinopec has announced a 5 billion yuan ($690 million) CVC fund to invest in hydrogen energy startups.
The fund will be managed by the Sinopec Capital subsidiary Sinopec Equity Fund Management.
China is the world’s largest hydrogen producer and consumer, according to a 2023 World Economic Forum white paper, but less than 0.1% of its hydrogen comes from green sources. In a move to boost demand for the technology, the Chinese Ministry of Finance released $321m in funding for hydrogen fueling stations for fuel-cell electric vehicles in April.
The Chinese government also removed one of the biggest obstacles to investment in hydrogen ;ast November when it officially classified hydrogen as a clean energy source, instead of a hazardous chemical. Several Chinese hydrogen startups are emerging to take advantage of the new opportunity.
GCV’s CVC Funding Round data for Q1 2025 shows a handful of Chinese CVC investment in energy companies. Among the four energy investments for the quarter, one was in a hydrogen fuel cell technology company called SEEEx Tech, which raised $13.8m in its seed funding round. The automation machinery manufacturing company Bozhon was one of its backers.
