The Green Ammonia Rush in China

Green hydrogen produced by renewable sources such as wind and solar could be carbon zero. Green ammonia is made with green hydrogen come from water electrolysis powered by renewable energy. Green ammonia can not only be used as an ideal carrier of hydrogen, but can also be used directly as a green fuel to replace fossil fuel.

Although green ammonia (from green hydrogen feedstock) may have great potential for carbon reduction, in most parts of the world, it stays on the blueprint right now. However, not known to much people, China is advancing several mega green ammonia projects, steady and firmly.

Since the beginning of 2022, several mega green ammonia projects have been announced by China’s energy and chemical giants:

• March 2022, Wulate, Inner Mongolia, 300,000 ton green ammonia production annually project;

• March 2022, Damao, Inner Mongolia, 300,000 ton green ammonia production annually project;

• March 2022, Damao, Inner Mongolia, 100,000 ton green hydrogen-ammonia integration project;

• March 2022, Chifeng, Inner Mongolia, 1.52 mn ton zero emission chemical products, capacity will be established by 2028, total investment: 40 bn Rmb;

• April 2022, Baotou, Inner Mongolia, 1.2 mn ton green ammonia production annually project;

• May 2022, Bayanchuoer, Inner Mongolia, Solar+wind power-green hydrogen-green ammonia integration project, 300,000 ton green ammonia production annually;

• July 2022, Dalate, Inner Mongolia, 9,300 ton green hydrogen to 50,000 green ammonia production annually project.

China is the world largest country in term of ammonia production and consumption. In 2020, China produced more than 57 mn ton ammonia, most of them using coal as feedstock. About 85% of ammonia in China was used to produce chemical fertilizer while remaining for other chemicals. Even a small portion of this volume to be replaced by green ammonia could reduce carbon emissions significantly.