Green Ammonia and Methanol

ammonia · methanol · electrolysis

Ammonia and methanol already consume about half the world's hydrogen, all of it from gas or coal. Swapping the hydrogen source is the largest ready-made market electrolyzers have.

Bar chart of CO2 emitted per ton of ammonia by hydrogen source: about 3.8 tons for coal gasification, the dominant route in China; about 2.0 tons for natural gas steam reforming; near zero for green electrolytic hydrogen. Below, the electrolytic route: wind and solar power feed an electrolyzer, whose hydrogen goes to a Haber-Bosch loop to make ammonia, or to methanol synthesis. About 0.18 tons of hydrogen and roughly 10 MWh of electricity are needed per ton of ammonia. CO2 PER TON OF AMMONIA, BY HYDROGEN SOURCE Coal gasification (China) ~3.8 t Gas reforming (SMR) ~2.0 t Green (electrolytic) near zero THE ELECTROLYTIC ROUTE Wind, solar Electrolyzer Haber-Bosch NH3, MeOH About 0.18 t of hydrogen and roughly 10 MWh of power per ton of ammonia
H2 per t NH3
~0.18 t
Power per t NH3
~10 MWh
Largest operating
Envision Chifeng
Largest building
NEOM
Hub
Industry

Finding

Ammonia and methanol do not need new end uses to absorb green hydrogen; they need only a cheaper electrolytic molecule than the gas and coal hydrogen they burn today

Haber-Bosch ammonia and methanol synthesis together take roughly half of global hydrogen demand. Nearly all of it comes from steam methane reforming or, in China, coal gasification, which emits close to twice the CO2 per ton of ammonia that gas reforming does. The synthesis loops stay the same; only the hydrogen supply and the air separation unit change.

The power bill decides the economics. One ton of ammonia needs about 0.18 t of hydrogen, which at 50-55 kWh/kg means roughly 9-10 MWh of electricity before synthesis and air separation. That is why the flagship plants sit on cheap, captive wind and solar: Envision's off-grid Chifeng plant in Inner Mongolia, opened in July 2025 with a first phase of about 320,000 t/yr of ammonia, and NEOM Green Hydrogen Company in Saudi Arabia (ACWA Power, Air Products, NEOM), built around 2.2 GW of thyssenkrupp nucera electrolyzers for about 1.2 Mt/yr of ammonia, with output expected from 2026-27.

China leads in projects reaching operation, including Goldwind's green methanol plant in Hinggan League, Inner Mongolia, aimed at ship fuel for Maersk. Europe's first commercial e-methanol plant, European Energy's Kassø site in Denmark, started in 2025, while Ørsted canceled its larger FlagshipONE project in 2024. In the US, hydrogen hubs such as Gulf Coast HyVelocity target ammonia, but most US ammonia additions are gas-based with carbon capture. Shipping demand depends on the IMO net-zero framework, whose adoption vote was postponed in October 2025.

Process chain

From electrons to molecules

Electrified ammonia and methanol process chain
StepEquipmentRoleWhat changes
ElectrolysisAlkaline, PEM or solid-oxide electrolyzersSplits water into hydrogen and oxygenReplaces the reformer or coal gasifier
Air separationCryogenic or membrane ASUSupplies nitrogen for ammoniaReformers got nitrogen from air in the secondary reformer; electrolytic plants need an ASU
Ammonia synthesisHaber-Bosch loop (Topsoe, KBR, thyssenkrupp Uhde, Casale)N2 + 3H2 to NH3 at 150-300 barMust ramp with variable power, or be buffered by hydrogen storage
Methanol synthesisCopper-zinc catalyst reactors with CO2 feedCO2 + 3H2 to CH3OH + H2ONeeds captured CO2 from biogenic, industrial or air sources
End useFertilizer plants, ship engines, crackers, fuel cellsFertilizer, plastics, shipping fuel, hydrogen carrierSame molecule, lower carbon intensity

Demand

Where green ammonia and methanol sell first

Adoption segments for green ammonia and methanol
SegmentDriversConstraints
Fertilizer (ammonia)EU CBAM covers fertilizer; food-company scope 3 targetsGreen premium over gray ammonia; retrofit of existing loops
Shipping fuel (methanol, ammonia)Maersk and COSCO methanol fleets; EU FuelEU MaritimeIMO framework delayed; ammonia engine and toxicity safety
E-fuels and chemicals (methanol)Methanol-to-olefins, e-SAF pathwaysCost and availability of non-fossil CO2
Hydrogen carrier (ammonia)Japan and Korea co-firing in power plantsCracking back to hydrogen loses energy

Sources

Sources and scope

Scope
Green Hydrogen for Ammonia and Methanol
Sources
IEA Global Hydrogen Review; Envision, NEOM Green Hydrogen Company, Goldwind, European Energy announcements (2024-26); IMO
Updated
October 2026