China Chemical Engineering Seventh Construction Co., Ltd. recently officially signed a contract for a 2.4 million ton green ammonia facility project in Namibia, undertaking front-end engineering design, engineering, procurement, and construction general contracting work. The Hyphen project, with a total investment of 10 billion US dollars and a scale equivalent to Namibia's gross domestic product, will build the world's largest green ammonia production facility, marking a significant breakthrough for China in the field of renewable energy technology.

The project plans to use 3GW of renewable energy for production, and upon completion, it will produce 2.4 million tons of green ammonia annually. At present, the project party has signed an agreement to export 50% of the 2 million tons of ammonia to the European market. China Chemical Engineering Seventh Construction Co., Ltd. has obtained this project with its rich experience in the chemical industry, reflecting the competitive advantage of Chinese enterprises in large-scale international engineering projects.

As a major producer of ammonia worldwide, China's annual output reaches 42 million tons, accounting for approximately 30% of the global total. The implementation of this project will promote China's strategic transformation from traditional ammonia production to green and renewable energy technologies. The project is located in the desert region of Namibia and requires the construction of a 3GW renewable energy infrastructure, including wind and solar power.

The project adopts a phased implementation strategy, with an initial annual output of 300000 tons and gradually expanding to full load production. It is estimated that the project will create 15000 construction jobs and 3000 long-term jobs for Namibia after completion, and have a significant impact on the employment market of the country's 2.6 million population. The contribution of the project to Namibia's GDP is expected to exceed 80%.

However, such large-scale production of green ammonia still faces technological challenges. There are operational difficulties in integrating renewable energy, expanding hydrogen production scale, and coordinating ammonia synthesis. At the same time, the project also faces multiple tests such as market digestion ability and technical execution risks. The production cost of green hydrogen in Namibia is expected to be $2 per kilogram, but the achievement of this goal depends on multiple factors.

The project is implemented by a joint venture between Enertrag from Germany and Nicholas Holdings from the UK, with the Namibian government holding a 24% stake. The complex governance architecture places higher demands on project management. The investment scale of 10 billion US dollars is equivalent to Namibia's GDP, and the performance of the project will directly affect the country's economic stability.

Industry insiders point out that the implementation of this project will face challenges in various aspects such as financing, technology, and market. Project financing requires the joint participation of multilateral development banks, export credit agencies, and commercial loan consortia. It usually takes 5 to 7 years from the completion of engineering design to full operation, and the market risk is relatively high.

The global annual production of ammonia exceeds 180 million tons, mainly used in the fertilizer market. Green ammonia targets emerging fields such as shipping fuels, power generation, and industrial processes, but the development of these markets is still in its early stages. European import demand is the main driving force for the project, but energy security considerations may affect long-term demand.

The participation of China Chemical Engineering Seventh Construction Co., Ltd. in this project demonstrates the important role of Chinese engineering enterprises in the field of renewable energy in Africa. The success or failure of the project will have a profound impact on the development of the global green ammonia market and provide important references for similar projects. At present, the commercial operation schedule of the project has not been finalized, reflecting the complexity of large-scale renewable energy project development. (This article is from the official website of Jian Dao www.seetao.com. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website new energy column editor/Yang Beihua