The China Energy Investment Corporation (CEIC), a state-owned enterprise, has received approval from regional authorities in Inner Mongolia to commence construction on a major 2.2GW green hydrogen-to-ammonia project.

Valued at 13 billion CNY (approximately $1.8 billion), the facility is expected to produce 1.35 million tonnes of green ammonia annually, contributing significantly to China’s renewable energy and hydrogen ambitions. The project is slated to begin construction in October 2026, with completion anticipated by December 2028.

Although CEIC has not disclosed the exact number of electrolysers that will be installed, industry sources indicate that the facility will feature electrolysers capable of producing 442,000 Nm³ of hydrogen per hour in total, representing roughly 2.2GW of electrolyser capacity. If realised, this would make it China’s second-largest green hydrogen project, trailing only Envision Energy’s ongoing facility in Chifeng, also located in Inner Mongolia.

Envision’s Chifeng project is currently operating its first phase, producing 320,000 tonnes of ammonia annually with a 500MW capacity. The company plans to expand production to 1.5 million tonnes per year and reach a total capacity of 2.5GW by 2028, maintaining its status as the world’s largest completed green hydrogen project.

CEIC’s new facility will be situated in the Ganqimaodu Port Processing Park in Urad Middle Banner, within Bayannur city. The project will be powered by 3.4GW of wind energy, underscoring the growing reliance on renewable sources for green hydrogen and ammonia production in China.

Funding for the initiative will come from a combination of CEIC’s own capital, totalling 4 billion CNY, and a 9 billion CNY bank loan. The investment highlights the Chinese government’s commitment to supporting state-owned enterprises in scaling up large-scale green hydrogen projects, which are seen as vital to reducing carbon emissions and meeting national energy targets.

Industry analysts note that the project reinforces Inner Mongolia’s position as a hub for China’s green hydrogen sector. The region’s abundant wind resources make it an ideal location for producing hydrogen and ammonia on a commercial scale, while also attracting further investment in renewable infrastructure.

As global demand for green hydrogen and ammonia continues to grow, CEIC’s 2.2GW project positions China as a leading player in the transition to low-carbon fuels, complementing its broader renewable energy initiatives and contributing to the country’s long-term climate objectives.

Source:

https://www.hydrogeninsight.com/production/second-largest-in-china-state-owned-firm-to-build-giant-2-2gw-green-hydrogen-to-ammonia-project/2-1-1858487