China’s new climate bet: Converting coal power plant pollution into cheap fertilizer. How it works?

China’s new climate bet: Converting coal power plant pollution into cheap fertilizer. How it works?

Traditional carbon capture projects usually trap carbon dioxide (CO₂) from factories or power plants and store it deep underground. While this reduces emissions, the process is expensive and often generates little direct revenue. 

Advertisement
Field trials linked to the project reportedly showed promising agricultural results. Tests found: Rice yields increased by about 6.2%. Field trials linked to the project reportedly showed promising agricultural results. Tests found: Rice yields increased by about 6.2%. 
Business Today Desk
  • May 18, 2026,
  • Updated May 18, 2026 1:12 PM IST

China is experimenting with a new way to tackle coal pollution — not by storing carbon emissions underground, but by converting them into agricultural fertilizer that can be sold for profit. 

The technology, developed by Chinese firm Jiangnan Environmental Technology, aims to solve one of the biggest problems facing carbon capture systems worldwide: high costs and limited commercial value. 

Advertisement

Traditional carbon capture projects usually trap carbon dioxide (CO₂) from factories or power plants and store it deep underground. While this reduces emissions, the process is expensive and often generates little direct revenue. 

What is China’s new coal pollution technology? 

Instead of burying the captured emissions, the company uses ammonia-based chemical reactions to absorb both carbon dioxide and sulfur pollutants directly from coal plant smokestacks. The captured pollutants are then converted into commercial fertilizers. 

The process produces: 

  • Ammonium sulfate — widely used as a sulfur-rich fertilizer 
  • Ammonium bicarbonate — a nitrogen-based fertilizer commonly used in agriculture 

According to the company, the fertilizers also contain sulfur and organic carbon that may help improve soil quality. 

How does the process work? 

Advertisement

The technology combines two pollution-control steps into one: 

  • Capture emissions from coal-fired power plants 
  • Convert the pollutants into fertilizer products 
  • Coal plants release large quantities of: 
  • Carbon dioxide (CO₂) 
  • Sulfur dioxide (SO₂) 

JNG’s system uses ammonia to chemically absorb these gases before they are released into the atmosphere. 

The resulting compounds are processed into usable agricultural fertilizers instead of waste products. In simple terms, the pollution becomes a raw material for farming. 

Where is it being tested? 

A pilot project is currently operating at the Jiufeng Thermal Power Plant in Ningbo, China. 

According to reports: 

  1. The facility captures about 10,000 tons of CO₂ every year 
  2. It produces roughly 30,000 tons of fertilizer annually 

The project is being watched closely because it attempts to turn carbon capture from a costly environmental obligation into a commercially viable business. 

Advertisement

Field trials linked to the project reportedly showed promising agricultural results. Tests found: Rice yields increased by about 6.2%. 

Researchers believe the sulfur and carbon-enriched fertilizer may improve nutrient absorption and soil conditions, though long-term agricultural studies are still needed. 

Why is this significant? 

Carbon capture technologies have struggled globally because they are expensive. 

Conventional systems can reportedly cost up to: 

  • $100 per ton of CO₂ captured 
  • JNG claims its fertilizer-based approach flips the economics: 
  • Fertilizer sales can generate more than $14 in profit per ton of CO₂ captured 

If scalable, the model could make emission reduction financially attractive for coal-heavy industries. 

Why is China interested in this? 

China remains the world’s largest coal consumer and continues to rely heavily on coal-fired power plants for electricity generation. 

That creates a major challenge: Reduce emissions without abruptly shutting down coal infrastructure 

Technologies that monetise carbon capture could help China balance industrial growth, energy security, and climate targets simultaneously. 

JNG already reportedly controls around 60% of China’s ammonia desulfurization market, giving it a strong position to expand the technology nationwide. 

The company is now planning a much larger project in Xinjiang capable of capturing one million tons of CO₂ annually. 

Advertisement

Could this replace traditional carbon capture? 

Not entirely. Experts say fertilizer conversion may work well for certain industrial setups, but it may not absorb enough carbon emissions to fully offset pollution from large coal fleets. 

There are also unanswered questions about: 

  • Long-term environmental impact 
  • Fertilizer overuse 
  • Economic scalability 
  • Agricultural sustainability 

Still, the project highlights how countries are increasingly exploring ways to turn climate technologies into profitable industrial systems rather than treating them purely as environmental costs. 

China is experimenting with a new way to tackle coal pollution — not by storing carbon emissions underground, but by converting them into agricultural fertilizer that can be sold for profit. 

The technology, developed by Chinese firm Jiangnan Environmental Technology, aims to solve one of the biggest problems facing carbon capture systems worldwide: high costs and limited commercial value. 

Advertisement

Traditional carbon capture projects usually trap carbon dioxide (CO₂) from factories or power plants and store it deep underground. While this reduces emissions, the process is expensive and often generates little direct revenue. 

What is China’s new coal pollution technology? 

Instead of burying the captured emissions, the company uses ammonia-based chemical reactions to absorb both carbon dioxide and sulfur pollutants directly from coal plant smokestacks. The captured pollutants are then converted into commercial fertilizers. 

The process produces: 

  • Ammonium sulfate — widely used as a sulfur-rich fertilizer 
  • Ammonium bicarbonate — a nitrogen-based fertilizer commonly used in agriculture 

According to the company, the fertilizers also contain sulfur and organic carbon that may help improve soil quality. 

How does the process work? 

Advertisement

The technology combines two pollution-control steps into one: 

  • Capture emissions from coal-fired power plants 
  • Convert the pollutants into fertilizer products 
  • Coal plants release large quantities of: 
  • Carbon dioxide (CO₂) 
  • Sulfur dioxide (SO₂) 

JNG’s system uses ammonia to chemically absorb these gases before they are released into the atmosphere. 

The resulting compounds are processed into usable agricultural fertilizers instead of waste products. In simple terms, the pollution becomes a raw material for farming. 

Where is it being tested? 

A pilot project is currently operating at the Jiufeng Thermal Power Plant in Ningbo, China. 

According to reports: 

  1. The facility captures about 10,000 tons of CO₂ every year 
  2. It produces roughly 30,000 tons of fertilizer annually 

The project is being watched closely because it attempts to turn carbon capture from a costly environmental obligation into a commercially viable business. 

Advertisement

Field trials linked to the project reportedly showed promising agricultural results. Tests found: Rice yields increased by about 6.2%. 

Researchers believe the sulfur and carbon-enriched fertilizer may improve nutrient absorption and soil conditions, though long-term agricultural studies are still needed. 

Why is this significant? 

Carbon capture technologies have struggled globally because they are expensive. 

Conventional systems can reportedly cost up to: 

  • $100 per ton of CO₂ captured 
  • JNG claims its fertilizer-based approach flips the economics: 
  • Fertilizer sales can generate more than $14 in profit per ton of CO₂ captured 

If scalable, the model could make emission reduction financially attractive for coal-heavy industries. 

Why is China interested in this? 

China remains the world’s largest coal consumer and continues to rely heavily on coal-fired power plants for electricity generation. 

That creates a major challenge: Reduce emissions without abruptly shutting down coal infrastructure 

Technologies that monetise carbon capture could help China balance industrial growth, energy security, and climate targets simultaneously. 

JNG already reportedly controls around 60% of China’s ammonia desulfurization market, giving it a strong position to expand the technology nationwide. 

The company is now planning a much larger project in Xinjiang capable of capturing one million tons of CO₂ annually. 

Advertisement

Could this replace traditional carbon capture? 

Not entirely. Experts say fertilizer conversion may work well for certain industrial setups, but it may not absorb enough carbon emissions to fully offset pollution from large coal fleets. 

There are also unanswered questions about: 

  • Long-term environmental impact 
  • Fertilizer overuse 
  • Economic scalability 
  • Agricultural sustainability 

Still, the project highlights how countries are increasingly exploring ways to turn climate technologies into profitable industrial systems rather than treating them purely as environmental costs. 

Read more!
Advertisement