INTERVIEW: China’s Envision Energy eyes more renewable ammonia exports this year

China's Envision Energy plans to expand global commercial shipments of renewable ammonia this year after its first delivery to South Korea, targeting offtakers in Asia and Europe, Frank Yu, Senior Vice President, told Platts, part of S&P Global Energy, in an interview March 12.

Envision Energy delivered an undisclosed quantity of renewable-derived ammonia from its unit in Inner Mongolia to Lotte Fine Chemical, marking a significant milestone in the trade of renewable fuels, it said in a statement Feb. 27.

"Our Chifeng facility is currently producing 320,000 metric tons of green ammonia annually, with exports having already commenced in Q4 2025," Yu said.

"We are rapidly building momentum, with collaborations advancing on multiple fronts with key offtakers across Asia and Europe."

South Korea's Lotte Fine Chemical plans to use renewable ammonia for bunkering and power generation and is working to build a supporting supply chain, the company said, citing its import from Envision Energy.

Envision Energy has established over 20 research and development and operation centers, along with more than 60 manufacturing bases in Europe, Middle East and Americas and Asia, according to the company's website.

Slow energy transition

Yu said the slower momentum globally in renewable hydrogen/ammonia project development is part of the market formation process and will not affect Envision Energy's business plans.

"At Envision Energy, we view the current global market dynamics not as a slowdown, but as a healthy maturation process...," Yu said.

"We remain highly bullish on green hydrogen as the foundation of future energy systems, and our confidence is grounded in tangible advantages."

Japan and South Korea have conducted auctions for low-carbon ammonia mainly for cofiring in power plants with the help of government subsidy systems and expectations are for more auctions to be held.

State-owned Japan Organization for Metals and Energy Security on Feb. 16 granted its first subsidies related to "support focusing on the price gap" to JERA as a certified low-carbon ammonia supplier under a Yen 3 trillion ($19.6 billion) support framework.

South Korea plans to launch an auction for low-carbon hydrogen-based power generation after canceling a 3,000-GWh tender issued in May, a spokesperson from the Ministry of Climate, Energy and Environment told Platts, part of S&P Global Energy in November 2025.

Renewable energy system

The core challenge for renewable hydrogen is the intermittency of wind and solar energy as they are weather-dependent, but Envision has solved this by building 100% renewable energy system, according to Yu.

This has been achieved using its proprietary "Physical AI," which enables electrolyzers to actively adapt to renewable fluctuations, delivering a "self-balancing" system, Yu said.

"We offer full-stack technology with end-to-end delivery," he said. "Envision controls the entire chain—from renewables and storage to electrolysis and dynamic ammonia synthesis."

The company has also demonstrated that the lack of bilateral agreements and regulations for the transport of renewable fuels is surmountable.

Some countries have defined renewable hydrogen/ammonia with acceptable emission limits, anticipating the need to facilitate early trade of the fuels.

"Our first commercial shipment proved that customs, logistics, and international maritime compliance are fully operational, significantly reducing project risks and costs," Yu said.

Competitive pricing

Yu said industry benchmarks indicate renewable ammonia production costs in China are becoming increasingly competitive.

"Thanks to our AI-driven optimization that maximizes renewable power utilization and overall system efficiency, the green ammonia produced at our Chifeng facility is highly cost-competitive — significantly narrowing the gap with conventional gray ammonia," Yu said.

The company secured an ISCC GHG-certified green ammonia credential and Bureau Veritas certification to confirm that the products meet EU standards, Yu said.

In June 2025, Envision Energy signed a sales agreement to supply Japan's Marubeni with renewable ammonia, the company said.

Platts assessed Middle East renewable-derived ammonia delivered into Far East Asia (with high-capacity factors) at $845.66/mt on March 9, up 3.42% from a month earlier. Platts assessed CFR Far East ammonia at $520/mt March 11, up 1.96% from a month ago.