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Demonstration project on production of green hydrogen and ammonia underway in Baotou, China

03 May 2023

Mongolia Hydrogen Newsletter

BAOTOU - The global transition towards cleaner energy sources has been gaining momentum, and the focus has shifted towards green hydrogen as a clean energy alternative. In this context, the construction of the International Hydrogen Energy Metallurgy and Chemical Demonstration Zone in Baotou, Inner Mongolia, marks a significant milestone in the pursuit of sustainable and zero-carbon technologies.

The project is led by the International Hydrogen Energy Centre (IHEC), supported by the United Nations Industrial Development Organization (UNIDO), and hosted by the Beijing Tsinghua Industrial Research and Development Institute (TIDRI) and the Chinese metal manufacturer, the Mintal Group.

Ammonia is produced in vast quantities worldwide for agricultural fertilizers. However the traditional production method uses natural gas or other fossil fuels to provide both the hydrogen feedstock and the energy to power the synthesis process. As a result, ammonia production releases almost 1.5% of global CO emissions. Reducing the amount of carbon dioxide produced during the ammonia manufacturing process is therefore critical to achieve net-zero targets by 2050.

The best way to reduce carbon emissions when making ammonia is to use green hydrogen, which is hydrogen produced via water electrolysis using renewable electricity.

In its first phase, the IHEC project will build a 1.5GW wind power farm to produce green hydrogen for green ammonia synthesis. The first batch of 390,000 tonnes of green ammonia per year is set to be supplied in early 2025.

On 15 April, the day before the ground-breaking ceremony marking the start of construction of the industrial zone, nearly 200 representatives of stakeholders from different regions, countries and industries attended the China-Europe Hydrogen Energy Industry Forum in Baotou. At the event, organized by the IHEC, participants discussed the role of hydrogen in the clean energy transition and the potential for cooperation between China and Europe.

China-Europe Hydrogen Energy Industry Forum in Baotou
Beger at China-Europe Hydrogen Energy Industry Forum in Baotou

Prominent speakers included Huang Zhiqiang, Executive Vice-Chairman of the Inner Mongolia Autonomous Region, who invited entrepreneurs to invest in renewable hydrogen production in Inner Mongolia, and Gunther Beger, Managing Director of UNIDO's SDG Innovation and Economic Transformation Directorate, who emphasized the organization's support for the decarbonization of industry, and expressed its willingness to collaborate on the development of new technology for a zero-carbon economy.

- TIDRI, established in 1998 by the Beijing Municipal Government and Tsinghua University, focuses on driving innovation and developing scientific and technological breakthroughs. The Institute also serves as a high-tech incubating centre for advanced industries, including those involved in hydrogen energy.

- IHEC, established in July 2021 with the support of Beijing Municipal Government and China’s Ministry of Commerce in cooperation with UNIDO, conducts research and development on low-carbon hydrogen energy. The Centre is an important knowledge partner of UNIDO’s Global Programme for Hydrogen in Industry.

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