There is green, greener, and then there is China. The Chinese have been developing an ultimate green facility to secure the country’s position as a leader in the global hydrogen production market. As China shifts its focus to the future capacity of 1,500,000 tonnes of green energy in the desert, one cannot help but be in awe of the benefits it has in store not only for China but also on a global scale. Discover more about China’s historic breakthrough in the desert below.
Goodbye to hydrogen after China’s historic discovery
China has shown that achieving long-term carbon neutrality is not an impossible feat, especially with the assistance of short-term climate targets. According to the World Resources Institute, China has set the goal of achieving carbon neutrality by 2060, and has updated its 2035 climate targets to include the following:
- Have EVs become mainstream in sales
- Boost forest stock volume
- Boost wind and solar capacity to more than 6 times the 2020 capacity
- Decrease greenhouse gas emissions by 7-10% compared to peak levels
- >30% non-fossil fuel share in energy consumption
By late 2025, China managed to boost its green hydrogen capacity to surpass 220,000 tonnes annually. Now, thanks to an ultimate green facility and a future capacity of 1,500,000 tonnes of a hydrogen carrier in the desert, China can easily achieve carbon neutrality by 2060, if not earlier. Find out more below.
1,500,000 tonnes of this green energy in the desert
A Chinese company called Envision Energy has developed the ultimate green facility in the Net-Zero Industrial Park located in Inner Mongolia’s Chifeng City, near the Gobi Desert. This facility will be the biggest green ammonia and hydrogen production facility in China. Envision Energy’s facility will be a milestone in the country’s large-scale decarbonization.
The Chifeng facility is unique compared to others of its kind, as all production is powered solely by renewable energy sources, solar and wind energy, which is stored in batteries. Exports of green ammonia were planned for the final quarter of 2025, with the entire facility set to expand over three phases to achieve 1,52 million tonnes of green ammonia annually.
Expanding in three phases
- Phase 0
- Launching 20,000-ton pilot phase in March 2024
- Phase 1
- Produce 300,000 tonnes of green ammonia annually by September 2025
- Phase 2
- Start construction by August 2025
- Increase annual production by 320,000 tonnes, starting in November 2026
- Phase 3
- Increase annual production by 900,000 tonnes
- Reach full-scale production of 1,52 million tonnes annually by 2029
China will greatly benefit from this green energy
Beyond the Chifeng facility operating with zero emissions thanks to renewable energy sources, it is also the world’s ‘smartest’ facility. AI plays a vital role in operations management, balancing energy supply and demand in real time. The facility will also be beneficial for China’s export market, as Envision Energy has already secured an offtake deal with Japan’s Marubeni Corporation.
In this deal, green ammonia is exported for sectors such as:
- Chemicals
- Fertilizers
- Shipping
According to the China Hydrogen Bulletin, other export purposes include transporting green ammonia by railway to Envision’s 80,000 cubic meter liquid ammonia storage and processing facility in Jinzhou port. This facility’s construction started in June 2024 and is still under development. Inner Mongolia is also planning to construct a 4,400 km green hydrogen pipeline network along with a 299 km ammonia transportation pipeline between Chifeng and Jinzhou.
The economic and environmental benefits for China are thus endless. Most importantly, this pioneering facility will significantly boost China’s energy security and play a major role in global decarbonization, bringing the world one step closer to achieving the global mission of achieving net-zero by 2050. While Envision Energy continues to develop the Chifeng facility, China is also juggling more than 20 other hydrogen ventures in its refreshed clean energy expansion.
