China Energy Engineering Group (CEEC) has started construction of the second phase of the Qingqing No. 1 Songyuan Hydrogen Energy Industrial Park in Songyuan, Jilin Province, China. The USD 1.62 billion expansion is expected to double the site’s renewable energy capacity to 1,600 MW and increase annual green ammonia production capacity to 600,000 metric tons.
The green hydrogen project represents a further step in China’s efforts to scale up renewable hydrogen and low-carbon fuel production for industrial and international markets. According to CEEC, the expansion involves an investment of RMB 10.83 billion and builds on the operating experience of the industrial park’s first phase.
Second Phase Targets Higher Production and Lower Costs
The second phase is designed to improve production efficiency and reduce the cost of manufacturing green ammonia. CEEC expects unit production costs to fall by more than 10% compared with Phase 1, supported by optimized facility design, upgraded domestic equipment and digital industrial management systems.
The wider industrial park integrates renewable electricity generation with hydrogen production, ammonia synthesis and methanol manufacturing. Wind and solar power supply electricity for electrolysis, which separates water into hydrogen and oxygen. The hydrogen can then be used to produce ammonia and other chemical products.
This integrated approach links renewable power generation with industrial fuel production. It also offers a way to store and transport renewable energy in chemical form, potentially serving sectors where direct electrification remains difficult.
The broader development plan envisages 3,000 MW of renewable energy generation capacity and large-scale production of green hydrogen, ammonia and methanol. The second phase will expand the facility’s production capabilities as CEEC seeks to improve the economics of renewable fuels.
Phase 1 Provides the Operational Foundation
The first phase of the Songyuan Hydrogen Energy Industrial Park began operations in December 2025. It includes 800 MW of renewable energy capacity and was designed to produce 45,000 metric tons of green hydrogen and 200,000 metric tons of green ammonia annually, alongside green methanol production and hydrogen storage facilities.
The first phase established the initial production infrastructure for the larger industrial park. The second phase is intended to build on that foundation through increased capacity, equipment upgrades and improved operating efficiency.
China Power Engineering Consulting Group’s Northeast Institute served as the engineering, procurement and construction contractor for the original project, according to CEEC. Other suppliers involved in the wider development include Sungrow Hydrogen for hydrogen production systems, Goldwind for wind turbines and subsidiaries of CIMC Enric for hydrogen storage equipment.
The green hydrogen project received ISCC EU certification in December 2025, according to CEEC. Such certification can support participation in international renewable fuel markets by providing evidence related to sustainability and supply-chain requirements.
Green Ammonia Targets Shipping and Industrial Markets
Green ammonia is one potential output of the expanded facility, with applications in established chemical markets and emerging low-carbon fuel markets. In shipping, ammonia can potentially be used as a marine fuel or as a carrier for hydrogen, offering an alternative pathway for reducing emissions in hard-to-electrify sectors.
In October 2026, ammonia produced at the facility was reportedly used in a ship-to-ship green ammonia bunkering operation in Zhoushan, Zhejiang Province. The demonstration connected production with storage, transfer and maritime fuel application.
Green ammonia may also serve conventional industrial uses, including fertilizer manufacturing. Its environmental benefits depend on factors such as the electricity source, production methods, supply-chain emissions and end use. Safe handling will require specialized procedures, while broader maritime adoption depends on the availability of suitable vessels, engines and bunkering infrastructure.
Expanding production could help CEEC pursue emerging demand from shipping operators and industrial consumers seeking alternatives to fossil-derived fuels. However, the commercial outlook will depend on production costs, certification requirements, transport infrastructure and buyers’ willingness to pay for lower-carbon products.
Cost Competitiveness Remains Key to Expansion
The Songyuan project reflects China’s efforts to move renewable hydrogen technologies from early deployments toward large-scale industrial production. The country’s established wind and solar manufacturing sectors, chemical production infrastructure and domestic ammonia market provide a foundation for integrating renewable electricity with fuel manufacturing.
Larger production volumes may help spread capital costs across more output and improve equipment utilization. Nevertheless, the commercial viability of green ammonia will continue to depend on renewable electricity prices, electrolyzer performance, financing costs, infrastructure availability and long-term purchase agreements.
The second phase will therefore provide a significant test of whether improved technology, optimized facility design and increased output can make renewable ammonia more competitive with conventional ammonia produced using fossil fuels.
International trade could provide another growth opportunity, linking Chinese renewable fuel production with shipping and industrial demand in overseas markets. Access to those markets will depend on sustainability certification, fuel standards, logistics and commercial agreements.
With the first phase operating and construction of the second phase underway, the Qingqing No. 1 Songyuan Hydrogen Energy Industrial Park is moving toward expanded production of green hydrogen and renewable fuels. Its performance will help demonstrate whether integrated renewable power and chemical production can achieve the cost reductions required for broader commercial adoption.