Cheaper Than Tap Water: China’s New Technology for Freshwater and Hydrogen Production

The world is currently facing a serious water scarcity challenge; however, China has introduced an innovative approach to water and clean energy supply by launching an advanced desalination facility. Located in Shandong Province, this plant uses waste heat from steel and petrochemical industries to convert seawater into freshwater, green hydrogen, and valuable mineral by-products. The production cost of one cubic meter of freshwater is estimated at only $0.28, which is even lower than municipal tap water prices.

This integrated system produces three key outputs:

• Ultra-pure freshwater suitable for both industrial and domestic use
• Green hydrogen, produced directly from seawater through electrolysis as a future clean fuel
• Mineral-rich brine containing lithium, bromine, and magnesium, widely used in chemical industries

Hydrogen production typically requires highly purified water; however, this new technology enables direct seawater electrolysis using corrosion-resistant catalysts. The annual green hydrogen production capacity of this facility is approximately 192,000 cubic meters, which is sufficient to power 100 buses over a distance of 3,800 kilometers.

This project represents a successful example of a circular economy model in industrial and coastal cities, where waste heat from factories is transformed into a sustainable source of clean water and energy. It can serve as a global model for carbon reduction and efficient resource management.