Chinese developer to build 390MW off-grid green hydrogen and ammonia project in Inner Mongolia

Source:hydrogeninsight

A Chinese green hydrogen developer is set to begin construction on a 390MW off-grid green H2 production plant and associated ammonia facility, after both projects were approved by local authorities yesterday.

Junrui Green Hydrogen Energy’s 1.6bn yuan ($225m) H2 production project – set to be build in the city of Hohhot, Inner Mongolia – will use 78 5MW electrolysers powered by wind and solar energy to produce 20,000 tonnes of green H2 annually.

Xinjiang-headquartered Junrui, which was only established two years ago, is financing the off-grid project using 314m yuan of its own capital with the remaining 1.3bn yuan coming from bank loans.

The majority of green H2 projects are connected to the grid, so that they can source power from elsewhere when the wind isn't blowing and the sun isn't shining, and also sell excess renewable power to the grid to generate additional income.

Junrui expects the electrolysers to be in operation for the equivalent of 3,000 hours per year.

The green hydrogen-to-ammonia project, which is registered at the same location, is due to produce 110,000 tonnes of ammonia annually, with an upfront cost of 1.5bn yuan ($211m) — of which 300m yuan will come from Junrui’s own coffers and the remaining 1.2bn yuan sourced from a bank loan.

Construction for both of these projects is expected to begin imminently and end in November 2026.

However, it is worth noting that under the regulations of the Inner Mongolian government, companies have a greater leeway of two years to start construction on a project once it is approved.

The developer is yet to reveal how the green ammonia from the facility will be used.