Government aims to convert 10% of coal power to ammonia by ‘27

China’s renewable ammonia co-firing strategy is set to drive significant demand for ammonia transport, benefiting the Very Large Ammonia Carrier (VLAC) market. As part of its 2024-2027 economic action plan, China aims to retrofit coal power plants to co-fire at least 10% ammonia by 2027, requiring an estimated 200 million tons per year of ammonia fuel.

A potential game-changer for VLAC markets
To support this transition, the Chinese government is accelerating funding and permitting large-scale ammonia production projects, with multiple renewable ammonia plants already announced. This surge in production will increase ammonia trade volumes, strengthening seaborne transportation demand and reinforcing the long-term fundamentals for VLACs. As China prioritizes decarbonization, VLACs will play a key role in facilitating the global ammonia supply chain.