China’s Baofeng Energy Group said it started construction on the largest solar-powered hydrogen pilot plant in the world. The project will use a 200-MW solar power plant located in the Northwestern region of Ningxia to make hydrogen via electrolysis.

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 refueling 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.