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Yara and BASF open their brand-new, world-scale plant, producing low-carbon ammonia
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The newest ammonia plant on the planet has opened in Freeport, Texas. A joint venture between Yara and BASF, this world-scale ammonia plant uses no fossil fuel feedstock. Instead, it will produce 750,000 metric tons of ammonia per year using hydrogen and nitrogen delivered directly by pipeline. The plant's hydrogen contract is structured so that the primary supply is byproduct hydrogen, rather than hydrogen produced from fossil fuels, and therefore the Freeport plant can claim that its ammonia has a significantly reduced carbon footprint. This new ammonia plant demonstrates three truths. First, low-carbon merchant ammonia is available for purchase in industrial quantities today: this is not just technically feasible but also economically competitive. Second, carbon intensity is measured in shades of grey, not black and white. Ammonia is not necessarily carbon-free or carbon-full, but it has a carbon intensity that can quantified and, in a carbon-constrained economy, less carbon content equates to higher premium pricing. Third, the ammonia industry must improve its carbon footprinting before it can hope to be rewarded for producing green ammonia.

Ammonia-to-Hydrogen Seen for Electricity Generation
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Approximately 40% of the world’s energy budget is consumed in the generation of electricity.  This is by far the largest use of primary energy across major energy-consuming sectors (transportation, industry, etc.).  What role ammonia will play in the electricity sector is therefore a question of considerable importance for the sustainable energy system of the future.  One concept currently on the table is power-to-ammonia as a means of electricity storage, whereby electricity is used to produce hydrogen and the hydrogen is reacted with nitrogen to produce ammonia.  The other, mirror-image, concept is to use ammonia, or hydrogen derived from ammonia, as a fuel that can be turned into electricity. This “back-end” use case is the focus of recent announcements from Mitsubishi Hitachi Power Systems (MHPS).  According to an April 5 story in the Nikkei Sangyo, MHPS plans to put a “hydrogen-dedicated gas turbine . . . into practical use by 2030.”  The company also stated that it has “started developing technology to extract hydrogen from ammonia,” citing ammonia’s ease “to store and transport.”

What drives new investments in low-carbon ammonia production? One million tons per day demand
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Last week, the International Maritime Organization (IMO) formally adopted its Initial GHG Strategy. This means that the shipping industry has committed to "reduce the total annual GHG emissions by at least 50% by 2050," and completely "phase them out, as soon as possible in this century." This also means that a global industry is searching for a very large quantity of carbon-free liquid fuel, with a production and distribution infrastructure that can be scaled up within decades. The most viable option is ammonia. How much would be required? Roughly one million tons of ammonia per day.

P2X, Ammonia Highlighted for Long-Haul Road Transport, Shipping
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The International Renewable Energy Agency (IRENA), in partnership with the International Energy Agency (IEA) and Renewable Energy Policy Network for the 21st Century (REN21), released a report this month entitled "Renewable Energy Policies in a Time of Transition." The 112-page document is a comprehensive survey of technologies, policies, and programs that have current or prospective roles in the global transition to a sustainable energy economy.  For the ammonia energy community, one of its conclusions stands out in vivid relief: "Developing P2X is crucial because it plays a key role in decarbonising long haul road transport, aviation and shipping sectors that are difficult to decarbonize ... The overall recommendation for developing P2X is to focus on the development of ammonia for the shipping sector as well as long haul road transport, where few or no competing low carbon technologies exist and P2X is expected to be economically viable."

IHI First to Reach 20% Ammonia-Coal Co-Firing Milestone
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The Japanese manufacturer IHI Corporation announced on March 28 that it had successfully demonstrated the co-firing of ammonia and coal in a fuel mix composed of 20% ammonia. Ammonia-coal co-firing had previously been demonstrated by Chugoku Electric in a fuel mix composed of just 0.6-0.8% ammonia. IHI says its ultimate goal is to “construct a value chain that connects the production and use of ammonia, using combustion technology of gas turbines and coal-fired boilers, using ammonia as fuel.”

Joyn Bio: microbial engineering for sustainable nitrogen
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Six months ago, in September 2017, I reported a $100 million joint venture announcement between Bayer and Ginkgo Bioworks that aimed to engineer nitrogen-fixing microbes, which could be put into seed coatings and provide nutrients to non-legume crops. Now, the joint venture has been named, and Joyn Bio is staffing up. For the ammonia industry, this represents potential demand destruction at a significant scale in the coming decades.

Decarbonising Maritime Transport: OECD report sees ammonia fuel enabling carbon-free shipping by 2035
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Twelve months ago, I wrote here that "the shipping industry is beginning to evaluate ammonia as a potential 'bunker fuel,' a carbon-free alternative to the heavy fuel oil (HFO) used in maritime transport." Around that time, I described the obstacle to adoption of ammonia fuel as an information gap, rather than a technology gap, because no new technology was required: the industry simply did not know about ammonia. This information gap had allowed the industry to believe that "CO2 reduction objectives will only be achievable with alternative marine fuels which do not yet exist." I'm glad to announce that this information gap is closing, and fast. According to a report published last week by the International Transport Forum, the OECD's "think tank for transport policy," the use of "currently known technologies could make it possible to almost completely decarbonise maritime shipping by 2035." This conclusion requires the adoption of ammonia as a zero-carbon fuel.

Yara's N-Tech Platform: Making Strides with Green Ammonia
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Yara International, one of the world’s largest ammonia producers, is making strides in its development of green ammonia as a fertilizer, chemical intermediate, and energy carrier.  The progress is documented in the company’s 2017 annual report, released last week, and in more detail in a presentation delivered in late February at the 2018 Nitrogen + Syngas Conference in Gothenburg, Sweden.

NH3 Fuel Conference to Take New Format in 2018
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The NH3 Fuel Association has exciting plans for the 15th annual NH3 Fuel Conference! Our 2018 offering will have much in common with the 2017 edition, but will also embody significant departures. As was the case in 2017, our annual event will be held over two days, scheduled in alignment with the American Institute of Chemical Engineers (AIChE) Annual Meeting. The key difference for 2018 is that it won’t be a single two-day conference; rather it will take the form of two separate conferences held on consecutive days. 

Ammonia technology portfolio: optimize for energy efficiency and carbon efficiency
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Earlier this month, I had the pleasure of speaking at the International Fertilizer Association's (IFA) conference on the subject of Innovations in Ammonia. A key point was the benefit of technology diversification: as with any portfolio, whether an investment account or a global industry's range of available technologies, concentration in any area represents risk, and diversification represents resiliency. Unfortunately, the ammonia industry has grown highly concentrated, and its dependency upon one technology and one feedstock represents significant risk in tomorrow's markets. This article features five charts that aim to demonstrate why energy efficiency is insufficient as the only measure of technology improvement, why it is better to optimize instead of maximize, and why market evolution is necessary to support investment decisions in sustainable ammonia synthesis technologies.