China Energy Engineering Group began construction on the second phase of the world's largest integrated green hydrogen, ammonia and methanol project on Tuesday in Songyuan, Jilin province, a major milestone in China's transition from technology demonstration to the large-scale commercialization of zero-carbon fuels.

 

With a total investment of 10.83 billion yuan ($1.62 billion), the Phase II expansion of the Qingqing No 1 Songyuan Hydrogen Energy Industrial Park will boost the facility's total green ammonia production capacity to 600,000 metric tons per year, CEEC said.

 

Converting gaseous green hydrogen — which is difficult and costly to store and transport — into liquid green ammonia and methanol has emerged as a crucial pathway to decarbonize heavy-duty sectors like far-ocean shipping and chemical manufacturing.

 

Long used for fertilizers, ammonia shows promise as a low-emission marine fuel, though traditional fossil fuel-based production currently limits its clean-energy potential.

 

Green ammonia produced from renewables offers a zero-carbon alternative, but high technology costs and the geographic disconnection between energy generation and fuel demand hinder its widespread adoption.

 

Aided by technological innovations and authoritative international certifications, Chinese green ammonia is rapidly securing a foundational role in global sustainable fuel markets, said industry experts.

 

China's 2060 carbon-neutrality pledge is accelerating low-emission ammonia development, particularly through pilot initiatives targeting the maritime sector, said Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University.

 

Accounting for a third of global ammonia production and hosting major international shipping hubs, China is uniquely positioned to lead the sustainable marine fuel rollout.

 

Scaling up these integrated facilities is the most viable route to lower the green premium and make clean fuels cost-competitive globally, he said.

 

The Songyuan project exemplifies this technological and economic scale-up. It utilizes a dynamic coupling technology that solves the world-class challenge of matching fluctuating wind and solar power generation with the strict, continuous demands of chemical production.

 

Phase II will double the project's renewable energy capacity to 1,600 megawatts. By optimizing integrated designs, utilizing domestically upgraded equipment and employing an industrial internet platform for smart management, Phase II reduces the unit production cost of green ammonia by more than 10 percent compared to Phase I.

 

Phase I, which commenced operations in December, has already achieved significant breakthroughs. Green ammonia produced by the facility was used in the world's first ship-to-ship bunkering of green ammonia fuel earlier this month in Zhoushan, Zhejiang province, successfully completing the entire industry chain from production and storage to offshore application.

 

"If Phase I solved the feasibility problem from zero to one, Phase II answers the commercialization question from one to N," said Li Jingguang, chairman of CEEC Hydrogen Energy Co.

 

He added that lowering fixed costs through scale allows Chinese green fuels to confidently participate in international market competition.

 

Ni Zhen, chairman of CEEC, said the launch of Phase II marks the project moving into full gear.

 

The company will remain committed to innovation-driven growth, play a greater leading role in industrial development and drive collaborative innovation among upstream and downstream enterprises across the supply chain, he said.

 

Compiled from ： China Daily