Decarbonisation technology specialist Topsoe will supply technology for the first commercial size dynamic green ammonia plant in China.
Announced today (19th Jan), the Danish company will provide process licensing, an engineering design package, proprietary equipment and catalysts for what will become its first Power-to-X project in the country.
Located in Baotou, Inner Mongolia, the new plant will be capable of producing 1,800 tonnes of green ammonia per day – or 390,000 tonnes per year – with production expected to start in 2025.
According to the company, the ammonia will replace approximately 850,000 tonnes of coal, helping to mitigate more than two million tonnes of carbon dioxide (CO2) from being emitted to the atmosphere ever year.
Commenting on the project, Dajun Yang, Managing Director China at Topsoe, enthused, “We are thrilled to be chosen for this amazing project by Mintal Hydrogen, and we look forward to support with our know-how and hardware.”
“Being chosen to contribute to this ground-breaking project is clear evidence of our ability to deliver state of the art solutions and to support the energy transition and reduction of greenhouse gas emissions also in China.”
The partnership aims to support China’s move to a greener economy – a target which encompasses its goal to reach Net Zero emissions by 2060.
“Establishing a commercial size green ammonia plant in Baotou really is a breakthrough in China for producing carbon neutral fuels and chemicals,” said XiaoLong Fu, General Manager at Mintal Hydrogen.
“Naturally, we are very pleased that we are now able to start construction of this landmark project that will support China’s move to a greener economy.”
Having submitted its Mid-Century Long-Term Low GHG Emission Development Strategy in October 2021 to the UNFCCC, Climate Action Tracker has evaluated China’s Net Zero target as ‘poor’ and ‘highly insufficient’.
According to the organisation, the long term strategy lacks a clear plan on how China plans to finance its short and long-term transition, which is estimated to be in the order of $76 trillion over the next 30 years.
Green ammonia and hydrogen production is set to play a major role in the decarbonisation of industry, with several large-scale projects currently either in or slated for development.
During a discussion on ‘The Age of Net Zero Technologies’ by the World Economic Forum (WEF) held today, Zhang Lei, CEO of Envision Group, said it is building the largest green hydrogen and ammonia facility, with phase 1 set to be commissioned in the middle of this year.
“The cost we’ve been able to set at $500 a tonne – today it’s around $800 in Europe. But the challenge we have is that the ammonia market is very niche; buyers normally sign one- or two-year contracts but in order to finance your green hydrogen and ammonia facility you need a long-term offtake contract. The user doesn’t want to take risks, if it’s $800 it could come down $200 of $300.”