The ammonia and methanol industries, which rely on gas, face multiple challenges

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From November 18 to 20, the annual TechHead Enterprise Technology Exchange Conference was held in Yibin, Sichuan. Focusing on the \"dual carbon\" goals, the conference addressed key topics such as energy conservation and carbon reduction, improved water efficiency, and technological innovation. It summarized the new advancements made over the past year, analyzed the current challenges and issues, and explored new opportunities for green, low-carbon, and high-quality development in the future. QQ20251121-100906.png Gu Zongqin, president of the China Nitrogen Fertilizer Industry Association, noted that over the past year, against the backdrop of global energy transition and the progressive implementation of China’s \"dual carbon\" policies, the ammonia and methanol production industries have achieved new progress in terms of maintaining stable production, improving energy efficiency, reducing water consumption and emissions, and pursuing green transformation. Yet they also face various challenges, including insufficient economic viability despite guaranteed natural gas supply, as well as increasing constraints related to green development. These challenges are evident in six aspects: first, the overall production capacity has remained stable, while operational efficiency has seen new improvements. Gu Zongqin explained that, given the weakening supply conditions for natural gas resources and the guidance provided by industrial policies, the construction of new ammonia and methanol production facilities using natural gas as a feedstock has essentially come to a halt in China. The focus of the industry’s development has now shifted entirely to optimizing existing production capacity and improving operational efficiency. By the end of 2024, the national capacity for ammonia production using gas as a feedstock remained at around 13 million tons per year, accounting for 17% of the total production capacity. The output of ammonia produced in this way was 12.65 million tons, representing a 3.4% increase on a year-on-year basis, while the capacity utilization rate rose to 96% ； The urea production capacity using gas as a feedstock is 17.11 million tons per year, accounting for 24.7% of the total capacity; the actual output was 15.8 million tons, representing a 7.8% increase compared to the previous year. The capacity utilization rate was 92%, which indicates a significant improvement in the operating efficiency and load-bearing capacity of the nitrogen fertilizer plants that use gas as a feedstock ； The methanol production capacity of Qitiu is 8 million tons per year, accounting for about 7% of the total production capacity. The methanol production volume remained stable at 4.46 million tons. In the face of external constraints such as periodic increases in natural gas prices, some key enterprises have managed to maintain high plant utilization rates and operational stability by advancing the deployment of intelligent control systems, optimizing process parameters, and strengthening operational management, thereby demonstrating strong production resilience. Secondly, the industry is under pressure from both ends, facing the dilemma of increased market volume without corresponding increases in profits. Gu Zongqin noted that since 2021, the capacity utilization rate of domestic natural gas-based ammonia production has remained above 90%, ensuring a strong supply to meet the needs of agriculture and related industries. However, on the production side, factors such as the heating season have led to rising natural gas prices, resulting in urea production costs for related enterprises remaining higher than market prices ； On the sales side, falling domestic urea prices, coupled with tightened export policies, further squeeze corporate profit margins. Although the industry has sought to alleviate pressure through orderly exports driven by self-regulation, and initial results have been seen, under the dual pressure of raw material costs and market conditions, the profitability of many enterprises has declined, with a noticeable trend of increased output without corresponding increases in profits. Looking ahead, as the national capacity for nitrogen fertilizer production continues to increase, the total annual production capacity of urea is expected to exceed 73.8 million tons by the end of the year, with the share of urea produced via the gas method dropping to around 23%. If natural gas prices remain high, related companies will face greater operational pressures and survival challenges. Third, energy consumption remains stable, and efforts to improve energy efficiency have entered a critical phase. Gu Zongqin said that the revised \"Limits on Energy Consumption per Unit of Product in the Fertilizer Industry\" (GB 21344-2023) came into full effect at the end of last year. This mandatory standard sets a new benchmark for improving energy efficiency in this industry, and it represents a milestone in promoting energy efficiency improvements and energy-saving upgrades within the sector. Looking at the current status of energy efficiency, the industry as a whole is entering a critical phase in improving its energy efficiency. According to statistics from the Nitrogen Fertilizer Association, in 2024 the average comprehensive energy consumption per ton of ammonia produced by key enterprises using the gas-based synthesis method was 1,064 kgce/t, remaining roughly the same as in the previous year; the overall reduction in energy consumption slowed down, indicating that efforts to improve energy efficiency in this industry are encountering bottlenecks. However, there is a significant variation in corporate energy efficiency performance. Some companies, represented by Shuifu Yuntianhua, have achieved energy consumption reductions that far exceed the industry average through continuous technological innovation and improved management practices, demonstrating a leading position in this field. In contrast, the few large-scale plants currently in operation with a capacity of 450,000 tons per year or more have a relatively high proportion of steam-driven systems in their power structures, resulting in a lower proportion of electricity use; therefore, their energy consumption levels still fall short of the benchmark values. For these large-scale facilities that constitute the backbone of the industry’s production capacity, it is imperative to carry out thorough energy efficiency assessments. By starting with the optimization of the entire process chain, and through comprehensive measures such as upgrading key equipment, improving manufacturing processes, steadily transitioning from steam to electric power, optimizing the plant’s energy network, and increasing the use of renewable electricity, it is possible to unlock greater potential for energy efficiency, thereby helping to improve the overall energy consumption levels across the industry. Fourth, water-saving technologies are being adopted more rapidly, and water efficiency management is steadily improving. Gu Zongqin believes that with the full implementation of the Water Conservation Regulations last year and the gradual expansion of the pilot programs for water resource tax reforms, enterprises have an even stronger internal drive to save water and improve efficiency. **A significant breakthrough has been achieved in the development of water usage standards—the \"Industrial Water Quotas, Part 8: Synthetic Ammonia\" (GB/T 18916.8-2025), revised under the leadership of the Nitrogen Fertilizer Association, was officially released in April 2025 and will come into effect on August 1 this year. In the new standard, both the advanced and general values for the water consumption quota of ammonia synthesis plants using natural gas as a raw material have decreased by more than 20% compared to those before the revision, reflecting fully the practical progress made in water-saving technologies and refined management within the industry in recent years. At present, some advanced facilities have managed to keep the water consumption per ton of ammonia below 5 cubic meters by taking measures such as increasing the concentration ratio of circulating water, raising the water recovery rate in desalination processes, ensuring that all condensate water is collected, increasing the use of non-conventional water sources, and optimizing water distribution networks. These efforts have helped lift the industry’s water-saving standards to a new level. In July this year, following evaluation by the association, five natural gas-based ammonia production enterprises, including China National Petroleum Corporation Ningxia Petrochemical Branch and Yunnan Xiangfeng Petrochemical Co., Ltd., were recommended to apply for the \"Water Efficiency Leader\" title awarded by the Petrochemical Federation. These companies are at the forefront of the industry in terms of water-saving process upgrades, recycling, and the establishment of management systems. The technical approaches and management practices they employ to improve water efficiency serve as valuable references for similar companies seeking to upgrade their water-saving measures. Fifth, technological upgrades are progressing steadily, yielding significant energy-saving results. Gu Zongqin pointed out that green and low-carbon development has become a defining feature of high-quality growth in this industry, with an increasing number of companies transforming the advantages associated with green and low-carbon practices into economic benefits through technological innovation and process upgrades. In recent years, with the further implementation of policies and standards related to improved energy efficiency and low-carbon environmental protection, the internal drive for green transformation across the industry has continued to grow. Many companies have actively carried out projects aimed at saving energy and reducing carbon emissions, achieving significant progress in this regard. For example, in 2021, Shuifu Yuntianhua launched a project to improve the energy efficiency and reduce carbon emissions of its ammonia synthesis plant. This involved increasing the pressure of the natural gas supplied to the compressor, using electric motors to drive these compressors, and optimizing the heat recovery process. By September 2025, all the renovations were completed; as a result, the overall energy consumption dropped from 1110 kgce/t to below 1050 kgce/t, with the lowest possible value reaching 1012 kgce/t. The carbon dioxide emissions per ton of ammonia produced decreased from 2.0 tons to 1.89 tons, resulting in an annual reduction of 94,000 tons of carbon dioxide emissions. Through a series of systematic and ongoing technological improvements, the energy efficiency of Shuifu Yuntianhua’s ammonia synthesis plant has seen further steady improvements, with its energy consumption per unit of product now ranking among the best in the industry. Companies such as Zhonghai Chemical Fudao, Meifeng Chemical, Sichuan Jinxiang, and Xinjiang Tianyun are pushing for innovations in materials and processes related to key equipment like conversion furnaces and heating furnaces. By applying the HRC energy-saving coating developed by Tianjin Rizhong Environmental Protection Company to methanol heating furnaces and first-stage conversion furnaces, significant energy savings have been achieved, with an energy-saving rate of over 5%. The coating does not peel off, is resistant to corrosion and wear, and has a long service life, thereby helping to reduce the overall energy consumption and pollutant emissions of these facilities. Shanghai Huayi uses natural gas as a raw material and the POX uncatalyzed oxidation process to produce syngas, which consists of CO and hydrogen. By introducing an innovative dry reforming bypass system, it is possible to adjust the ratio of oxidants to hydrocarbons in the feed gas flexibly, thereby meeting the specific requirements of downstream processes for the composition of the syngas. This approach has enabled the first industrial application of methane-carbon dioxide autothermal reforming technology, offering a new technical solution for carbon emission reduction in this industry. In addition, many enterprises carry out relocation and renovation, as well as upgrades to intelligent and low-carbon technologies, based on their own conditions, thereby further expanding the avenues for green development. To promote the sharing of experiences and technical exchanges, this conference has specially invited some companies with outstanding results to share their practical cases, providing useful references for other enterprises to carry out improvements. Sixth, standards guide industry norms, driving continued progress in green transformation. Gu Zongqin explained that at present, industry standardization has initially established a standard framework covering multiple dimensions such as energy consumption, environmental protection, product quality, and testing methods. In terms of group standards, to date the Nitrogen Fertilizer Association has issued a total of 21 such standards. In 2025, four new standards were released: \"Calcium Nitrate Tetrahydrate\", \"Nitrous-Sulfur-Based Fertilizers\", \"Plastic Packaging Containers for Liquid Fertilizers\", and \"Lids for Plastic Packaging Containers of Liquid Fertilizers\". Another 10 standards are currently under development, providing crucial support for the standardized and sustainable development of the industry. It is particularly worth noting that 24% of the standards relate to the quality of already released fertilizer products, while 63% pertain to fertilizer products that are still under development. These standards together constitute an important part of the new fertilizer standard system, and they represent the key focus areas of the current standard framework. A number of important standards such as the \"Classification Standards for Clean Production Levels in the Coal-based Synthesis Ammonia and Urea Industries (Air Pollutants)\\", the \"Trial Classification Standards for Green Synthesis Ammonia\\", and the \"Trial Classification Standards for Green Methanol\" not only fill existing standard gaps but also serve as important references for industry standards currently under development, including the \"Emission Standards for Air Pollutants in the Chemical Fertilizer Industry\", the \"Emergency Emission Reduction Measures for Key Industries during Severe Pollution Episodes\", and those related to green synthesis ammonia. In terms of **standards**, the standard \"Quotas for Industrial Water Use – Part 8: Synthetic Ammonia\", which was developed with the involvement of the Nitrogen Fertilizer Association, as well as the industry standard \"Assessment of Digital Transformation Maturity in the Petrochemical and Chemical Industries\", have been successfully released. Progress has been made on a number of **standards, including \"Industrial Water Use Quotas for the Yellow River Basin – Part 11: Synthetic Ammonia\", \"Industrial Water Use Quotas for the Yellow River Basin – Part 12: Urea\", \"Methods and Requirements for Quantifying the Carbon Footprint of Greenhouse Gas-Related Products: Synthetic Ammonia/Urea\", and \"Green Synthetic Ammonia\". At the same time, the association actively cooperated with the Environmental Planning Institute in the development of two industry standards: the \"Emission Standards for Air Pollutants from the Chemical Fertilizer Industry\" and the \"Emergency Emission Reduction Measures for Key Industries during Severe Pollution Episodes\". Gu Zongqin emphasized that the formulation and implementation of these standards will provide strong technical support for tasks such as industry carbon emission accounting and management, digital transformation, and environmental protection management.