China's first integrated methanol hydrogen production and refueling station was put into operation on Wednesday in Dalian, Liaoning province, said its operator China Petrochemical Corp.

The station, capable of producing 1,000 kilograms of high-purity hydrogen each day, uses a methanol-to-hydrogen process to produce high-purity hydrogen, said China Petrochemical Corp, also known as Sinopec, the world's largest refiner by volume.

Compared with the current hydrogen production models, the integrated hydrogen production and refueling station will reduce cost by 20 percent by reducing cost in hydrogen storage and transportation, it said.

According to Sinopec, the storage and transportation are the major factors that restrict the development of the hydrogen energy industry in the country.

China's hydrogen refueling stations currently rely on tube trailers for transport, which result in a higher cost and lower efficiency.

The operation of the integrated hydrogen production and refueling station provides a model for on-site hydrogen production in the country, it said.

zhengxin@chinadaily.com.cn