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According to a report from Sinochem New Network, on November 19, Gu Zongqin, president of the China Nitrogen Fertilizer Industry Association, delivered a keynote speech at the 2025 Technical Exchange Conference on Natural Gas-Based Ammonia and Methanol Production held in Yibin, Sichuan. He stated that in light of the new circumstances and requirements, the industry involved in natural gas-based ammonia and methanol production must rely on technological innovation as a driving force, focus on energy conservation and carbon reduction, and adhere to safety and environmental protection standards. It is also necessary to accelerate the development of new forms of productive capacity in order to enhance the industry’s ability for sustainable development. Next, the entire industry should focus on advancing work in five key areas. First, systematically advance energy conservation and carbon reduction, and significantly improve energy efficiency levels. Gu Zongqin noted that since the 14th Five-Year Plan period, **efforts have been continuously intensified to guide policies aimed at energy conservation and carbon reduction. Documents such as the \"Implementation Guidelines for Energy Conservation and Carbon Reduction Transformations in the Ammonia Synthesis Industry\" and the \"Benchmark and Baseline Levels of Energy Efficiency in Key Sectors of High-Energy-Consuming Industries\" have been issued, which have effectively promoted improvements in energy efficiency within these industries as well as the orderly phasing out of outdated production capacities. Entering the new phase of the 15th Five-Year Plan, energy conservation and carbon reduction will remain the core tasks for the high-quality development of the industry. Recently, the **Development and Reform Commission issued the ‘Special Management Measures for Central Budgetary Investment in Energy Conservation and Carbon Reduction’, providing a clear pathway for financial support to facilitate the green transformation of the industry. The measures clearly state that support will be provided for energy-saving and carbon-reduction projects in key sectors such as electricity, steel, and chemicals; for the low-carbon transformation of coal chemical projects; for green methanol production projects; as well as for the demonstration and application of advanced green and low-carbon technologies, zero-carbon industrial parks, and large-scale carbon capture, utilization, and storage (CCUS) projects. It also specifies the methods and proportions of such support, with the proportion allocated to projects related to energy-saving and carbon reduction in key industries and the clean substitution of coal consumption being 20% of the total approved investment amount. Enterprises should actively seize policy opportunities, broaden their funding sources, and pursue energy-saving and carbon-reduction upgrades; in particular, enterprises in western regions can benefit from multiple policy incentives. Currently, the Guiding Catalogue for Industrial Structure Adjustment classifies renovation projects that achieve benchmark energy efficiency levels as those falling under the encouraged category; the Catalogue of Encouraged Industries in the Western Region continues to apply a preferential corporate income tax rate of 15%. In terms of relevant qualification assessments, following expert evaluations conducted by the Nitrogen Fertilizer Association, several nitrogen fertilizer manufacturers in the western region have met the required criteria regarding the proportion of revenue generated from core products such as value-added urea and high-efficiency fertilizers; as a result, they have been eligible for a 10-percentage-point reduction in corporate income tax. This demonstrates clearly the synergistic effect of policy guidance and industrial upgrading. Second, deepen water efficiency improvement initiatives and strengthen the intensive use of water resources. Gu Zongqin explained that in recent years, the development of industrial water-saving standard systems has been accelerated. The **standard titled \"Industrial Water Quotas – Part 8: Synthetic Ammonia\" has been officially implemented, and the mandatory **standards for water consumption in the production of synthetic ammonia, urea, and methanol in the Yellow River basin are now in the final stages of approval. The introduction and implementation of these standards represent important steps in implementing the Yellow River Protection Law of the People’s Republic of China and promoting the intensive use of water resources. They are also essential for improving water usage efficiency across the country, strengthening river basin management, and ensuring **water security. After the implementation of the standards, efforts will be made from both technical and managerial perspectives to systematically improve the water use efficiency in the ammonia synthesis, urea, and methanol industries across the country as well as in the eight provinces and regions along the Yellow River basin. Gu Zongqin suggested that natural gas-based nitrogen fertilizer and methanol manufacturers should take proactive actions in four areas: first, they should align themselves with the new standards by conducting water usage assessments and water balance tests to identify areas with potential for water savings ； Second, accelerate the implementation of water-saving technological upgrades, gradually phase out processes and equipment with high water consumption and low efficiency, and actively apply advanced water-saving technologies such as circulating cooling, reclaimed water reuse, and zero wastewater discharge ； Third, improve the water use management system by establishing a comprehensive control mechanism covering the entire process from water extraction and use to drainage ； Fourth, enterprises that meet the advanced standards for water usage can, in accordance with the prescribed procedures, apply to the competent tax authorities for preferential policies regarding exemptions from the water resources tax. By combining standard setting with policy incentives, it will effectively drive the industry’s water use patterns toward greater intensity and efficiency, providing strong support for the development of a water-conserving industrial system. Third, enhance the core competitiveness in technology to seize a strategic advantage for future development. Gu Zongqin emphasized that, under the dual pressure of price ceilings and cost floors, natural gas-based nitrogen fertilizer companies generally face the severe challenge of \"reversed prices and rising costs.\" Against this backdrop, technological innovation has shifted from an option for development to a key factor for breaking through challenges; it is necessary to achieve cost reduction, efficiency improvement, and value chain enhancement through technological empowerment. Gu Zongqin suggested focusing on making breakthroughs in four areas: first, increasing investment in research and development and improving innovation mechanisms, with an effort to establish a technology innovation system centered on enterprises, driven by the market, and featuring close integration of industry, academia, and research, in order to provide systematic support for addressing cost pressures ； Secondly, it is necessary to develop and apply green and low-carbon technologies, making active use of advanced process technologies such as high-efficiency conversion, low-pressure ammonia synthesis, and carbon reduction through the integration of new energy sources. This helps to improve the efficiency of utilizing waste heat and pressure, thereby effectively reducing energy consumption and carbon emission levels and alleviating cost pressures at the source ； Third, accelerate digital transformation by promoting the extensive use of technologies such as big data and artificial intelligence in the intelligent upgrading of entire processes, thereby reducing labor and operational costs through improved efficiency ； Fourth, it is necessary to leverage the leading role of benchmarks; a number of exemplary enterprises have emerged in the industry that excel in areas such as energy conservation and carbon reduction, improved water efficiency, and intelligent manufacturing. These enterprises provide practical experiences that can be replicated and scaled up, and the entire industry should aim to emulate them in order to foster an internal drive for competition and improvement. Fourth, strengthen standard guidance to consolidate the foundation for development. Gu Zongqin pointed out that currently, the natural gas-based nitrogen fertilizer industry is facing unprecedented challenges, and transformation and upgrading of the industry are urgent. The industry must pursue a path of high-quality development driven by technological innovation, and standards will undoubtedly play a key role in this process. On the one hand, it is necessary to actively promote the dissemination and implementation of existing standards such as the \"Limits on Energy Consumption per Unit of Product in the Fertilizer Industry\" and the \"Industrial Water Use Standards – Part 8: Ammonia Synthesis\", and to accelerate the enforcement of standards regarding mandatory water use limits for ammonia synthesis and urea production in the Yellow River Basin that are set to be issued soon ； On the other hand, it is necessary to accelerate the improvement of the industry’s green standard system, make solid progress in developing the group standards under consideration, and at the same time plan for a number of new standard projects in advance. At present, there is an urgent need to establish technical specifications for environmentally friendly and energy-saving coatings in Tianjin, in order to regulate the use of such new energy-saving materials in high-temperature equipment such as conversion furnaces ； Establish standards for detecting emissions from urea granulation towers to promote precise pollution control in the industry and ensure the scientific accuracy and validity of the detection results ； As well as formulating leading standards such as evaluation guidelines for zero-carbon factories and technical requirements for waste-free factories, to provide a technical basis and management norms for the industry’s green and low-carbon transformation. Fifth, make great efforts to extend the industrial chain and steadily pursue diversified development. In recent years, a number of enterprises have proactively pursued a strategic shift in their product structure, moving from a focus on single fertilizers to a combination of fertilizers and other products, thereby gradually moving up the value chain. This approach has helped them broaden their sources of revenue and pursue a path of sustainable development. Gu Zongqin pointed out that, affected by various factors such as high prices of natural gas as a raw material and intensified competition due to the homogenization of urea products, the entire industry needs to actively explore ways to improve its product structure. On one hand, it is necessary to strengthen the development of new types of fertilizers, enhance the quality of agricultural chemical services, and meet the demands for greener and more precise agriculture by focusing on the development of differentiated products such as slow-release and controlled-release fertilizers, water-soluble fertilizers, and urea with enhanced efficacy ； On the other hand, it is necessary to extend the chain of high-end chemical products. At present, the traditional downstream sectors such as melamine and urea solutions for use in vehicles have limited growth potential. New chemical products like high-end engineering plastics such as polyoxymethylene are becoming the focus of companies’ strategic efforts to differentiate themselves. The entire industry needs to promote coordinated development in the areas of ammonia, fertilizers, and chemicals. Only by optimizing and expanding the industrial chain, while simultaneously working on developing new types of fertilizers and advancing high-end chemical production, can companies enhance their core competitiveness, create a diversified source of revenue, and respond flexibly to market fluctuations.