1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

With the transformation of the global energy structure and the intensification of climate change issues, the development of new energy has become a global focus of attention. As the world’s largest energy consumer, China is actively promoting the development of the new energy industry, aiming to optimize the energy structure and reduce carbon emissions. Qian’an County has abundant wind and solar energy resources, providing superior conditions for the development of wind and solar power generation industries. In order to maximize the utilization of local wind and solar energy resources and improve the use efficiency of new energy, Qian’an County has proposed the construction of a demonstration project that integrates green hydrogen production and ammonia synthesis from wind and solar energy.

1.1.2 Market prospect

(1) Current market situation

The core process of technology of hydrogen production and ammonia synthesis from wind and solar energy is to convert wind energy into electric energy, and then use this electric energy to decompose water molecules and produce hydrogen. Subsequently, hydrogen and nitrogen react with the catalyst to synthesize ammonia, producing ammonia. This process not only fully utilizes wind and water resources, but also converts them into ammonia with high added value. By using renewable energy and water as raw materials to produce hydrogen and synthesize ammonia, this process achieves the goals of carbon neutrality and sustainable energy development, and is considered one of the key directions for the future development of green energy.

The technology of hydrogen production and ammonia synthesis from wind and solar energy has an extremely wide scope of application. Ammonia, as a basic chemical raw material, is widely used in the synthesis of various products such as pesticides, fertilizers, and plastics, etc. By now, there is a huge demand for ammonia globally, but the traditional ammonia production process mainly relies on fossil fuels, resulting in problems of high energy consumption and carbon emissions. The emergence of the technology of hydrogen production and ammonia synthesis from wind and solar energy provides a new way for sustainable production of ammonia, meanwhile, ammonia can also serve as a storage and transportation medium for hydrogen energy, providing technical support for the utilization of renewable energy.

In addition to its wide application fields, the technology of hydrogen production and ammonia synthesis from wind and solar energy also has significant environmental advantages. This technology utilizes wind energy and water resources to produce hydrogen and ammonia, without emitting greenhouse gases such as carbon dioxide, and has a positive impact on global climate change. Compared with traditional ammonia production technology, the technology of hydrogen production and ammonia synthesis from wind and solar energy has lower energy consumption and significantly reduces energy waste. In addition, this technology can also achieve sustainable production and utilization of ammonia, reduce reliance on fossil fuels such as natural gas, thereby alleviating energy supply pressure.

The technology of hydrogen production and ammonia synthesis from wind and solar energy is a technology with broad application prospects and environmental advantages. By utilizing wind energy and water resources to convert them into high-value ammonia, sustainable energy development and carbon neutrality goals have been achieved. In the future, with the continuous advancement and application of renewable energy technology, the technology of hydrogen production and ammonia synthesis from wind and solar energy will play an important role in chemical, energy and other fields, promoting sustainable development and environmental protection.

The technology of hydrogen production and ammonia synthesis from wind and solar energy is an innovative technology with great potential and importance. Utilizing renewable energy and water resources to realize sustainable production and utilization of ammonia not only reduces reliance on fossil fuels, but also lowers energy consumption and carbon emissions, having profound significance for environmental protection and sustainable development. However, to achieve this goal, it still needs to make further research and development of the technology of hydrogen production and ammonia synthesis from wind and solar energy, to address technical problems with catalysts and reaction efficiency, etc. The government and enterprises should increase their support and investment in this technology, promote its industrialization and application, and contribute to the realization of sustainable development and green energy. The technology of hydrogen production and ammonia synthesis from wind and solar energy is an important technology based on renewable energy and water resources, having a great potential for achieving sustainable energy development and carbon neutrality goals.

With the continuous advancement and application of renewable energy technology, the technology of hydrogen production and ammonia synthesis from wind and solar energy will play an important role in chemical, energy and other fields, promoting sustainable development and environmental protection.

The technology of hydrogen production and ammonia synthesis from wind and solar energy can utilize renewable energy such as wind and solar energy to produce hydrogen, which is widely regarded as a clean and efficient energy. Compared with traditional fossil fuels, the combustion of hydrogen only produces water vapor and does not produce harmful gases or greenhouse gas emissions, effectively reducing air pollution and greenhouse effect. The renew-ability and richness of renewable energy such as wind and solar energy endow the technology of hydrogen production and ammonia synthesis from wind and solar energy with sustainable development advantage.

The main raw material for the technology of hydrogen production and ammonia synthesis from wind and solar energy is water resource, which is one of the most abundant resources on Earth. By fully utilizing water resources, we can achieve sustainable production and utilization of ammonia, and reduce reliance on fossil fuels and other limited resources. In addition, this technology can also convert organic matter in wastewater into valuable ammonia products, combining waste treatment with energy production to achieve resource recycling and reduce waste emissions, further promoting environmental protection and sustainable development.

(2) Market prospect

Hydrogen production capacity is mainly divided into gray hydrogen, blue hydrogen, and green hydrogen. Green hydrogen is produced from water electrolysis by firstly using renewable energy such as hydraulic power, wind power, solar energy, biomass energy, ocean energy, and geothermal energy, etc. to make power generation, achieving true zero carbon emissions. Although China is the world’s largest hydrogen producing country, the majority of its production capacity belongs to gray hydrogen. Gray hydrogen and blue hydrogen are produced using non-renewable resources such as coal, petroleum, refinery gas, and natural gas, etc., accompanied by significant emissions of greenhouse gases such as carbon dioxide. The technology of hydrogen production from green electricity used in this project refers to zero or extremely low carbon dioxide emissions during the power production process. Compared to thermal power generation, which has a significant impact on the environment, green electricity such as solar energy, wind energy, geothermal energy, biomass energy, and nuclear energy is more in line with the requirements for being environment-friendly and sustainable, representing the direction for future development.

By now, ammonia is mainly used as a carrier for hydrogen and can be used as a fuel for power generation and marine fuel. In the predicted scenario of sustainable development, it is expected that by 2050, the proportion of ammonia fuel in the total global shipping fuel consumption will have been about 25%, and the ammonia consumption for ammonia-coal co-fired power generation in coal-fired power plants worldwide will have reached 60 million tons/year, equivalent to 140 billion kilowatt hours of power generation. In the scenario of achieving net zero carbon emissions by 2050, the proportion of ammonia fuel will increase to 45%, and the ammonia consumption for co-fired power generation will reach 85 million tons/year. The technical and economic feasibility of ammonia as a hydrogen carrier is high, with huge market potential and broad development prospects in the future. By now, multiple countries are conducting continuous researches on the bottleneck issues in the fields of green ammonia synthesis and ammonia energy utilization, in order to achieve low-cost and large-scale production of green ammonia and the large-scale application of ammonia direct combustion/ammonia fuel cells as soon as possible.

When using the renewable energy electricity for hydrogen production, if grid connected hydrogen production is adopted, the high cost of grid crossing will significantly increase the cost of hydrogen production. Although off-grid hydrogen production has lower electricity cost, it faces the problem of unstable new energy electricity. For example, the weighted comprehensive electricity price for green electricity in a new energy consumption base in Northwest China is 0.3209 yuan/(kWh), and the price for hydrogen production from water electrolysis is 1.761 yuan/m³, which is 25.8% higher than the 1.4 yuan/cubic meter price for traditional hydrogen production from coal and natural gas. In the next 5 to 10 years, with the large-scale development of PV and wind power, the cost of green electricity will also decrease year by year, and the cost of hydrogen production is expected to approach that of hydrogen production from fossil fuels. The future cost reduction space for hydrogen production from water electrolysis (PEM) mainly comes from the reduction of electricity prices and energy consumption, the extension of service life, and the reduction of equipment depreciation. It is expected that by 2035 and 2050, the average cost reduction space for hydrogen production from water electrolysis (PEM) will have reached 22% and 30% respectively, while a larger cost reduction space will come from scale effect. In addition, ammonia chemicals have been included in the national carbon trading system. All these factors will promote gradual increase of the proportion of the industry of ammonia production from green hydrogen in the market.

Under the dual promotion of technological progress and policy support, the development prospect of the industry of ammonia production from green hydrogen is very broad. The government and enterprises are committed to promoting innovation and application of relevant technologies in order to reduce production costs and enhance market competitiveness. For example, by optimizing the process of hydrogen production from water electrolysis, energy conversion efficiency can be improved and energy consumption can be reduced; At the same time, by developing new and efficient catalysts, the electricity consumption during the electrolysis process can be reduced. In addition, the government’s subsidy policies for renewable energy and tax incentives for the industry of ammonia production from green hydrogen will further promote the rapid development of the industry.

In terms of market application, the technology of ammonia production from green hydrogen can not only meet the demand of the industrial field for clean energy, but also provide solutions for multiple fields such as transportation and building heating. With the maturity of technology and the reduction of costs, ammonia production from green hydrogen is expected to be applied in a wider range of fields, becoming an important force in promoting energy structure transformation and achieving carbon neutrality goal. In the future, with the deepening of global consensus on green and low-carbon development, the industry of ammonia production from green hydrogen will usher in a broader development space.

(3) Market demand

With the increasing global emphasis on green and low-carbon development, the market demand for ammonia production from green hydrogen as a clean and efficient energy solution is showing a strong growth trend, which is particularly evident in multiple fields. Firstly, in the industrial field, especially in industries such as fertilizers and chemicals, the demand for green hydrogen is rapidly increasing. The high pollution and high cost issues of traditional fossil fuels are becoming increasingly prominent, and green hydrogen, as an environment-friendly and economical alternative, is gradually becoming the first choice for enterprises. Business owners have expressed that introducing green hydrogen technology could not only help reduce production cost, but also significantly improve product quality and enhance market competitiveness.

Secondly, in the transportation field, green hydrogen also has a broad application prospect. With the popularization of new energy vehicles, hydrogen fuel cell vehicles are gradually gaining popularity among consumers due to their advantages such as long range and short refueling time. Many automobile manufacturers have begun to lay out the hydrogen energy industrial chain, striving to seize the opportunity in this emerging market. It can be foreseen that green hydrogen will play an increasingly important role in the transportation field in the future.

In addition, the application of green hydrogen in building heating, power storage and other fields has also shown great potential. Especially in northern regions, there is a huge demand for winter heating, and green hydrogen, as a clean energy, can effectively reduce the environmental pollution caused by coal-fired heating. While in terms of power storage, green hydrogen technology is expected to solve the volatility problem of renewable energy power generation and improve the stability and reliability of the power grid.

It is worth mentioning that, with the continuous maturity of green hydrogen technology and the gradual reduction of cost, more and more small and medium-sized enterprises have also begun to pay attention to and invest in this field. This not only injects new vitality into the development of the green hydrogen industry, but also further expands the market demand.

To sum up, the demand for green hydrogen in the market is showing a diversified and widespread trend, and its strong development momentum indicates broad market prospect and enormous commercial value. With technological progress and policy support, the green hydrogen industry is expected to achieve leapfrog development in the future, becoming an important force in promoting global energy transformation and achieving carbon neutrality goal.

1.1.3 Technical analysis

This project is jointly supported by professional research institutions and top international technical teams, and has built a diversified technology roadmap research and application system from theoretical basis research to applied research. The product production technology of the project has matured and been widely applied in practice, and this process is highly compatible with China’s national conditions. From a technical perspective, the project construction is completely feasible. The project company has completed a large amount of preliminary preparation work and has a top domestic technical team, strong financial strength, and significant talent advantages. Once the project is completed, it will closely follow the forefront of domestic and international technological development, continuously shorten the renewal cycle of technology, and implement comprehensive quality control for every link of the production process to ensure that the project’s technical level always maintains a leading position.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The project complies with relevant policy requirements such as the National 14th Five-Year Plan and 2035 Development Plan, the Opinions of the Central Committee of the Communist Party of China and the State Council on Fully, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Peak and Carbon Neutrality, the Notice of the State Council on Issuing the Action Plan for Carbon Peak before 2030, the Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035), the 14th Five-Year Plan for Energy Development in Jilin Province, the Implementation Opinions on Supporting Green and Low Carbon Development and Promoting Carbon Peak and Carbon Neutrality, and the Implementation Plan for the “Hydrogen-powered Jilin” Action. In addition, Jilin Province has also introduced several policy measures to support the development of the hydrogen energy industry, encouraging the construction of the integrated demonstration project for renewable energy hydrogen production and green hydrogen self-consumption, and provided support in project approval, energy-saving review, and other aspects‌.

The Jilin Provincial Institute of Science and Technology Innovation has released the Application Guidelines for the Science and Technology Special Projects of Jilin Hydrogen Energy Industry Comprehensive Research Institute in 2024, giving priority to supporting key core technology research, achievement transformation, and industrialization projects in the hydrogen energy industry, encouraging cooperation between enterprises and research institutions, and promoting the research & development and application of hydrogen energy technology‌.

(2) Industrial advantages

Qian’an County has proven to have reserves of 430 million tons of petroleum and 2.8 billion tons of shale oil, making it the largest oil extraction block in Jilin Oilfield; The proven reserves of natural gas are 70.6 billion cubic meters, and the predicted reserves to be proved are 58 billion cubic meters; The proven reserves of carbon dioxide are 51.7 billion cubic meters. The annual average sunshine hours reach 2,866.6 hours, and solar energy resource belongs to the second-class resource area; The annual effective wind energy reserves are 600-1,000 kWh/k㎡, and wind resource belongs to the third-class resource area. By the end of the 14^th Five-year Plan period, the installed capacity of wind and solar power generation will exceed 4 million kilowatts, and clean energy has become a pillar industry in Qian’an.

(3) Location advantages

Qian’an has railways, highways and waterways extending in all directions. The railways such as Beijing-Harbin, Beijing-Qiqihar, Changchun-Baicheng, and Tongliao-Ranghulu Railways, as well as several national and provincial trunk highways such as Beijing-Harbin, Changchun-Baicheng and Changchun-Harbin Highways, pass through or connect with the counties. It takes 90 minutes to reach Changchun or Harbin Airport from the counties. It is 70 kilometers away from Songyuan Port, the largest inland river port in Jilin Province. Along the Songhua River waterway, it can be traced back to Jilin City, down to Harbin, and then enter Heilongjiang, directly connecting to Khabarovsk Port in Russia. It is 100 kilometers away from Da’an Port and 600 kilometers away from Yingkou Port. In terms of location advantages, Qian’an, Songyuan has become an important transportation hub and logistics center connecting the three provinces in Northeast China and 8 cities and 14 counties in Inner Mongolia Autonomous Region, radiating a population of 31 million.

(4) Talent advantages

Songyuan City has established 11 industrial colleges, scientific research internship and training bases, and doctoral workstations to support rural revitalization with 7 provincial universities including Jilin University and Jilin University of Finance and Economics. These cooperations have attracted a large number of high-level talents and college graduates to come to Songyuan for scientific research, study, work, and living. It has established a “Talent Home · Project Special Class” and connected 126 industrial projects and 83 talent projects. Through the integration platform of industry and talents, it has attracted a large number of high-level talents, which can provide sufficient talent support for the project.‌

1.2 Contents and scale of project construction

The project covers an area of 600,000 square meters and, based on a power consumption of 5 kW per cubic meter of hydrogen produced from water electrolysis, the power consumption in a full operating hour is approximately 373.2 MW. In order to maintain the continuous operation of synthetic ammonia for 24 hours, the actual total power generation capacity of new energy is 1,000 MW, including 900 MW of wind power and 100 MW of PV power. Among the 900 MW of wind power, 700 MW is used for hydrogen production, the remaining 200 MW is connected to the grid, and all 100 MW of PV power is used for hydrogen production. The total installed capacity of new energy is 1,000 MW, with an annual output of 300,000 tons of green hydrogen and synthetic ammonia.

1.3 Total investment of the project and capital raising

The total investment of the project is 8,400 million yuan, including the construction investment of 6,400 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 6,511.62 million yuan, its profit will be 1,953.48 million yuan, its investment payback period will be 5.5 years (after the tax, including the construction period of 1 year) and its return on investment will be 23%.

Note: “10 thousand yuan” in the table is in RMB

1.4.2 Social evaluation

Reducing carbon emissions: By utilizing renewable energy such as wind and solar energy, the green hydrogen production and ammonia synthesis from wind and solar energy project significantly reduces consumption of fossil fuels, thereby reducing carbon dioxide emissions.

Promoting the development of green energy: The project not only promotes the application of clean energy such as wind and solar energy, but also promotes the development of the hydrogen energy industry. Hydrogen energy is one of the most promising clean energy. The green hydrogen production and ammonia synthesis from wind and solar energy project provides an important application scenario for hydrogen energy, which helps to build a green hydrogen energy society.

Promoting local economic development: The green hydrogen production and ammonia synthesis from wind and solar energy project has driven local economic development through the conversion and utilization of new energy resources.

Technological innovation and industrial upgrading: The project have achieved multiple innovations in technology, formed a complete industrial chain of electricity-hydrogen-ammonia, and promoted the green transformation and upgrading of pillar industries such as chemical, automobile, and agriculture.

Ecological benefits: The green hydrogen production and ammonia synthesis from wind and solar energy project has had a positive impact on the ecological environment by reducing carbon emissions and promoting the application of clean energy. The implementation of the project helps to achieve a dual leap in ecological and economic benefits.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation.

1.6 What to be invested by the foreign party

Funds, other ways can be discussed in person.

1.7 Construction site of the project

Qian’an County Industrial Park

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of unit

Name: Qian’an County Key Project Service Center

Address: No. 1399 Yuzhou Road

2.2 Overview of unit

Qian’an County is located in the northwest of Jilin Province and the west of Songyuan City. It borders Qian Gorlos Mongol Autonomous County to the southeast, intersects with Da’an City to the north, adjoins Tongyu County to the west, and neighbors Changling County to the southwest. The area under its jurisdiction is 3,616.6 square kilometers, with 17 townships (towns, fields, sub-districts), 164 villages, 296 hamlets, and a total population of 270,000.

Qian’an is a city of historical and cultural significance. As early as the Liao and Jin Dynasties, this was a paradise for Khitan nomads and a spring palace for Liao emperors. The beautiful and magical Dabusu Mud Forest, which houses fossils of rhinoceroses and mammoths from over 20,000 years ago, is a national nature reserve and geological park. It is known as the “Stone Forest in the South and Mud Forest in the North” and blends the ancient and mysterious history and culture of Qian’an County, creating a cultural tourism brand that embodies the “eternal charm” and “mud forest illusion”. In 1928, the county was established and named “Qian’an” due to its location in the “Qian” position of the Eight Trigrams, in order to pray for long-term peace and stability. Following the pattern of the ancient “well field system”, the entire land of Qian’an County with a length of 6.6 miles was divided into “well squares”. The 268 auspicious characters from the Thousand Character Classic were selected as the beginning and “well” as the end of each square, writing a complete Thousand Character Classic neatly on 3,616 square kilometers of the land. The entire Qian’an County was evaluated as the “most unique rural place name culture exhibition park in China”.

Qian’an is an ecologically livable city. It belongs to the second and third terraces of the Songhua River, 5-10 meters higher than the surrounding counties, hence it is known as the “Qian’an Terrace”. The average frost-free period is 146 days, and the accumulated temperature throughout the year is 2,884.5 ℃, belonging to the mid-temperate continental monsoon climate. There are nearly 100 natural closed flow lakes and marshes within the territory. After the completion of the Hadashan Water Conservancy Hub Project, Qian’an Irrigation Area Project, and River Lake Connection Project, the water storage capacity can reach 1.1 billion cubic meters, and the water surface level will reach 1,000 square kilometers, accounting for 1/3 of the total area. It is truly a northern water city. Qian’an has convenient transportation, with the Tieli–Horqin Expressway, Tongliao-Ranghulu Railway, and Yakeshi-Siping Highway running through the entire territory, having formed “two horizontal and one vertical” transportation network.

Qian’an is an open and prosperous city. It deeply implements the strategy of strengthening the county with talents, vigorously implements the “3412 Talent Revitalization of Qian’an Project”, comprehensively introduces, cultivates, and makes good use of talents, and treats talents from all directions with the greatest sincerity, having created a talent highland of “gathering talents and doing its utmost to satisfy people near and far”. In order to improve the efficiency of administrative approval and service systems, and to solve the bottlenecks and difficulties in providing convenient services for enterprises and the people, the county’s party and government departments have initiated activities such as replacing the “service personnel” with “top leader” to handle the process, sit at the window, and follow law enforcement. The Implementation and Assessment Measures for the “Top Leader” to Handle the Process have been formulated and issued, which make clear regulations on “handled by whom”, “what processes”, “how to handle”, forcing the establishment of the awareness that “everyone is a soft environment”. The simple and kind people of Qian’an have always welcomed guests from all over the world with their broad mindedness and open arms; The county committee and government seeking development have always been committed to creating a favorable investment environment with a strong sense of openness and effective measures. They sincerely invite visitors from all over to invest and develop in Qian’an, and seek common development.

2.3 Contact method

Contact person: Deng Xiaoyu

Tel: +86-438-8250023

Postal Code: 131400

Contact person of the city (prefecture) where the project is located:

Contact unit: Songyuan Municipal Commerce Bureau Investment Attraction Service Center

Contact person: Yu Lili

Tel: + 86-18004388787