BUSINESS

Potentially Disruptive Green Ammonia Project Officially Starts Production

Published: Jul. 11, 2025 7:50 p.m. GMT+8

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Envision’s Green Hydrogen and Ammonia Project in Chifeng, Inner Mongolia. Photo: Zhao Xuan/Caixin

Wind-turbine maker Envision Group has officially put into operation a project in North China’s Inner Mongolia autonomous region which produces ammonia using electricity generated by its standalone renewables-powered grid.

For Envision, one big benefit of having a standalone grid is long-term cost. The electricity used by the project costs just 0.2 yuan (3 U.S. cents) per kilowatt-hour — nearly 60% lower than the public grid charges for local industrial users.

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Envision Group launched a wind/solar-powered ammonia plant in Inner Mongolia, targeting 1.52 million tons of annual capacity.
Electricity from its standalone grid costs 0.2 yuan/kWh, about 60% lower than the public grid, but green ammonia production remains 1.2–2.1 times more expensive than conventional methods.
The project faces operational challenges and losses but has struck export deals with Marubeni and a Chinese fertilizer firm, aiming for global markets despite certification and demand hurdles.

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Who’s Who

Envision Group: Envision Group is a wind-turbine manufacturer that operates a project in Inner Mongolia, China, producing green ammonia using a standalone renewables-powered grid. This project aims for 1.52 million tons of annual production to decarbonize various sectors. While facing challenges like high production costs and unstable power supply, Envision plans to sell green ammonia manufacturing equipment and off-grid system technology globally.

Marubeni Corp.: Marubeni Corp., a Japanese company, will purchase green ammonia in bulk from Envision Group's project in Chifeng starting in 2026. This green ammonia, produced using renewable energy, will be exported to other countries in the Asia-Pacific region.

Shandong Xianglong Group: Shandong Xianglong Group is a Chinese conglomerate. Its vice president, Sun Feifei, announced that its chemical fertilizer manufacturing base in Liaoning province has signed a deal with Envision to purchase green ammonia. This indicates their involvement in the green energy sector.

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What Happened When

2025：: Envision Group officially put into operation its wind-powered ammonia production project in Inner Mongolia.

2025：: The trial phase of the project was completed.

2025：: During trial operations, the project encountered three consecutive days of no wind and little sunshine, requiring the purchase of electricity from the public grid.

2025：: The project operated at a loss in its trial phase.

2025：: The Chifeng government was in talks to build a pipeline to Jinzhou for future exports.

2025：: Shandong Xianglong Group signed a deal to buy green ammonia from Envision for its chemical fertilizer manufacturing base in Liaoning province.

Tuesday, July 8, 2025：: Envision held the project’s inauguration ceremony, at which Marubeni Corp.’s general manager announced bulk purchases of green ammonia starting in 2026.

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