Advancing Green Ammonia Economics: Towards Decarbonization of China’s Chemicals Industry

This report examines the decarbonization of ammonia production in China, focusing on the transition from coal-based feedstocks to green hydrogen produced via renewable-powered water electrolysis to reduce high carbon emissions.

• China is the global leader in ammonia production and consumption, relying primarily on coal as a feedstock. This process is highly carbon-intensive, with emissions ranging from 4.4 to 4.8 t CO2/t NH3, and over 85 percent of these emissions originate from hydrogen generation.
• The development of China's green ammonia industry faces technical and economic hurdles. Technically, the intermittent nature of renewable electricity must be converted into a stable supply for chemical production. Economically, green ammonia currently costs significantly more than traditional production methods.
• To achieve cost parity for green ammonia, the report proposes integrating market mechanisms, including carbon markets, downstream premiums, and policy interventions, alongside actions from enterprises and industry bodies.

APA

RMI (2025). Advancing Green Ammonia Economics: Towards Decarbonization of China’s Chemicals Industry. https://rmi.org/resources/advancing-green-ammonia-economics-towards-decarbonization-of-chinas-chemicals-industry/

Chicago

RMI. Advancing Green Ammonia Economics: Towards Decarbonization of China’s Chemicals Industry. 2025. https://rmi.org/resources/advancing-green-ammonia-economics-towards-decarbonization-of-chinas-chemicals-industry/.

Wikipedia

{{cite report |author=RMI |title=Advancing Green Ammonia Economics: Towards Decarbonization of China’s Chemicals Industry |date=4 March 2025 |url=https://rmi.org/resources/advancing-green-ammonia-economics-towards-decarbonization-of-chinas-chemicals-industry/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025advancing, author = {{RMI}}, title = {{Advancing Green Ammonia Economics: Towards Decarbonization of China’s Chemicals Industry}}, institution = {RMI}, year = {2025}, month = mar, url = {https://rmi.org/resources/advancing-green-ammonia-economics-towards-decarbonization-of-chinas-chemicals-industry/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }