A 150,000 ton annually green ammonia plant broke ground in Ordos on June 25th, representing another major achievement of China’s green hydrogen industry.
This project includes green field 500MW wind farm, 20,000 ton annually green hydrogen production and hydrogen to ammonia facilities with a total investment of 3.8 billion Rmb ($ 527 mn).
Green ammonia has become more and more attractive for China’s industrial companies to reduce their carbon emissions.
Industrial statistic shows ammonia production process emitted 220 mn ton CO2 in 2020 and producers are seeking cost efficient measure to decarbonize it.
According to our resources, there are 13 green hydrogen-ammonia projects started construction in Inner Mongolia alone this year. When fully operational, these green ammonia projects can output over 1.7 million ton green ammonia annually.
The major incentive behind this tide is the cost reduction, a recent survey regarding green hydrogen production cost indicated that it has been cut to around $2.5 per kg in some typical regions in Western China even without any subsidies.
And the projects owners also expect extra benefit from carbon market. The carbon price is around 50 Rmb per ton CO2 in China while it is widely perceived to be in a surging trend through 2030.
Source: Jian WU, China Hydrogen Bulletin