CHINA BLUE AMMONIA MARKET FORECAST 2024-2050

Furthermore, the 14th Five-Year Plan of China explicitly highlights the development of hydrogen-based clean fuels, including blue ammonia, as a major national priority. The Baotou demonstration project, with an estimated value of approximately $230 million, is projected to produce 390,000 tons of blue ammonia annually, commencing in 2025. The facility will boast a blue ammonia production capacity of 3,000 tons per day.

The China blue ammonia market segmentation includes application and technology. The technology segment includes steam methane reforming (SMR), autothermal reforming (ATR), and gas partial oxidation.

Gas partial oxidation (GPO) is deployed in the creation of blue ammonia, characterized by its low carbon footprint. Acknowledged as a potential clean energy carrier and fuel source, blue ammonia finds applications in power generation, industrial feedstock, transportation, and various other uses. GPO entails the partial combustion of natural gas with oxygen, resulting in a blend of hydrogen and carbon monoxide, commonly known as syngas. This syngas is subsequently transformed into blue ammonia through a reaction with nitrogen, while the accompanying carbon dioxide by-product is captured and stored. 

When compared to alternative blue ammonia production methods like steam methane reforming (SMR) and autothermal reforming (ATR), GPO boasts certain advantages. It necessitates less steam and heat input, accommodating a broader range of natural gas compositions. Moreover, GPO yields a higher hydrogen-to-carbon monoxide ratio, diminishing the requirement for additional water-gas shift reactors. Nevertheless, GPO is not without its drawbacks, including elevated capital and operating costs, reduced efficiency, and increased oxygen consumption.

Autothermal Reforming (ATR) is a modified form of Steam Methane Reforming (SMR) employed in the generation of hydrogen for blue ammonia synthesis. In contrast to SMR, which depends on external heat sources such as furnaces, ATR produces its heat internally via a regulated partial oxidation reaction of methane with pure oxygen. This self-heating characteristic removes the necessity for external fuel and lowers the overall energy consumption.

Some of the leading companies in the China blue ammonia market are Ma’aden, Nutrien Limited, POSCO Holdings Inc, etc. 

POSCO Holdings Inc (POSCO) operates as a globally integrated steel manufacturing company specializing in the production and marketing of steel rolled products and plates. The company provides a wide range of products, including hot-rolled and cold-rolled items, wire rods, plates, silicon steel sheets, and stainless-steel products. These offerings cater to diverse industries such as automotive, shipbuilding, home appliances, engineering, and machinery.

In addition to its core manufacturing activities, POSCO extends its services to encompass the planning, designing, and construction of industrial plants, civil engineering projects, as well as commercial and residential buildings. The company also engages in various other operations, including power generation, trading of steel and raw materials, and network and system integration. POSCO’s global presence spans across Asia-Pacific, Europe, the Middle East, Africa, and the Americas, with headquarters in Pohang-si, South Korea.