Shanxi's unconventional energy sector emerges as 100b-yuan growth driver

(goshanxi.com.cn)

Updated: 2026-08-19

As China's sole comprehensive energy reform pilot province, Shanxi is utilizing unconventional energy to reshape its energy industry landscape, with coalbed methane and hydrogen becoming a new 100-billion-yuan ($14.83 billion) growth driver in the energy sector.

Shanxi boasts proven coalbed methane reserves of approximately 970 billion cubic meters, leading the nation in resource volume, extraction conditions, and industry maturity. In the first half of this year, Shanxi's total unconventional natural gas production reached 10.05 billion cu m, marking a 12.4 percent year-on-year increase and setting a new record for the period.

Building on its coal and coking industry base, Shanxi has an industrial by-product hydrogen potential exceeding 1 million metric tons annually. By the end of 2025, the province had established 26 hydrogen refueling stations, promoted 1,286 fuel cell vehicles, and nurtured nearly 50 industry chain enterprises, establishing China's first full-chain demonstration project covering production, storage, transportation, refueling, and utilization.

On the policy front, Shanxi has integrated unconventional energy into its key tasks for green and low-carbon transition, issuing special plans for resource enhancement, production increase, and demonstration city cluster construction, while providing support in land use, approvals, and financing.

In industry, Shanxi is creating zero-carbon integrated energy scenarios in mines, parks, and transport hubs, achieving multi-energy complementarity. The province is also advancing high-end industries like coalbed methane chemicals, hydrogen equipment manufacturing, and fuel cells, shifting from resource output to product and technology output.

Shanxi is bridging the "last mile" of large-scale unconventional energy development through policy, industry, and technology coordination.