GF SECURITIES·2026-03-17 01:25Investment Rating - The report provides a "Buy" rating for several companies involved in the green hydrogen and green ammonia sector, including China Energy Engineering, Huadian Technology, Donghua Technology, and China Chemical [4]. Core Insights - Green ammonia and methanol are emerging as key carriers for energy transition in hard-to-abate sectors, with significant potential for decarbonization [11][12]. - The production cost of green ammonia is primarily driven by green hydrogen, which accounts for 80-90% of the total cost [11][18]. - The market for electrolyzers in China is projected to reach an annual average of 143-293 billion CNY from 2026 to 2030, driven by increasing demand for green hydrogen [25][27]. Summary by Sections 1. Green Ammonia and Methanol Address Hydrogen Storage and Transportation Issues - Green ammonia is a stable chemical that resolves storage and transportation challenges, making it a primary destination for green hydrogen consumption [11]. - The cost breakdown shows that nearly half of the investment in green ammonia production is allocated to electrolyzers, which represent 45% of the total equipment expenditure [18][20]. - The estimated market space for electrolyzers in China from 2026 to 2030 is projected to be between 143 billion CNY and 293 billion CNY [25]. 2. Supply and Demand Outlook - As of November 2025, China has planned green ammonia projects with a total annual production capacity exceeding 25.75 million tons and green methanol projects with a capacity of 63.53 million tons [29][34]. - Global policies, particularly from the EU and IMO, are pushing for emissions reductions, which will drive demand for green fuels [35][36]. - Current applications of green ammonia are primarily in chemical synthesis, but long-term demand for shipping fuel is expected to grow significantly [46][50]. 3. Investment Recommendations - The report suggests continuous monitoring of companies involved in the production of green hydrogen and ammonia equipment, highlighting several key players such as China Energy Engineering and Huadian Technology [4][29]. - The profitability of the green hydrogen and ammonia industry is expected to increase as production facilities are established and operational [4][29].