To explore Trinidad & Tobago' s existing ammonia production capacity and the new imperative to decarbonize, the Energy Chamber of Trinidad & Tobago and Argus Media joined Project Features last month. To maintain its market share in key export destinations and meet climate goals, Trinidad & Tobago has a series of decarbonized ammonia projects underway, including the use of wind, solar and gas-based CCS pathways.
We explore future ammonia production pathways for the Caribbean nation, including ongoing plans for CCS and renewable-based projects. The Energy Chamber of Trinidad & Tobago and Argus Media join us in conversation.
Argus Media is the latest organisation to launch a pricing service for low-carbon ammonia, following on from CRU and S&P Global Commodity Insights. The services build on existing methodologies, assumptions and trade routes for fossil-based ammonia.
Concrete steps are being taken on ammonia and ammonia-related policy in Australia. In late 2021, the New South Wales state government launched its Hydrogen Strategy, adding to the list of state-based strategies announced around the country. There is also a high level of industry interest within NSW to develop significant hydrogen (and ammonia) hubs, and renewable energy generation. Federally, all eyes are on the Clean Energy Regulator as they develop the Guarantee of Origin certification scheme, which is soon to begin looking at low and zero-carbon ammonia production. To explore how these policy pieces are coming together, we welcome Matt Baumgurtel (Hamilton Locke), Michael Probert (NSW OECC), Cameron Mathie (CER), Dane Halstead (FFI) and panel chair Andrea Valentini (Argus Media). We also welcome Argus Media as Ruby Sponsors of this year’s conference. Join us in-person or online at 9AM on Thursday 25 August to learn more.
KBR has been awarded a study to help establish a green hydrogen economy in the dual-island nation. Repurposing of Trinidad & Tobago's existing industrial infrastructure - particularly grey hydrogen & ammonia production facilities - will be a key focus. Trinidad & Tobago occupies a crucial role in the global ammonia supply chain, but its reliance on grey hydrogen means that declining gas reserves and spiraling gas import prices have created shortfalls, with some ammonia production suspended and plants closed. A green ammonia project led by NewGen Energy will develop a 130 MW, solar-powered electrolyser facility in Point Lisas, and feed the state-owned Tringen I & II ammonia production plants 27,200 tonnes per year of green hydrogen feedstock.
Infrastructure is key to realising the full potential of ammonia energy, enabling new markets and expanding the existing ones. By 2050 the hydrogen (and by extension, ammonia) market could be 20 times larger than it is today. What future possibilities are there to expand global ammonia production (currently 180 million tonnes per year) or trade volumes across the world’s oceans (currently 18 million tonnes per year)? On November 18, 2020, the Ammonia Energy Association (AEA) hosted a panel discussion moderated by Daniel Morris from KBR, as well as panel members Anthony Teo from DNV GL, Oliver Hatfield from Argus Media, and Michael Goff from Black & Veatch as part of the recent Ammonia Energy Conference. The panel’s insights from a number of different perspectives - market analytics, ship building and operating, as well as pipeline engineering - demonstrated ammonia's potential to become a low- or zero-carbon fuel of choice for the future. Current infrastructure can be adapted, new infrastructure can be built and operated cheaply, and lessons from previous fuel transitions can be taken on board to make the uptake of ammonia energy as smooth as possible.
This week, Argus Media published a white paper on green ammonia. This includes an overview of potential new markets and market volumes, a round-up of green ammonia projects around the world, and an assessment of production technologies and their impact on the ammonia cost curve. Argus estimates that, by 2040, green ammonia could cost just $250 per ton. Argus is an industrial analysis and consulting firm with long experience in the ammonia market, which, traditionally, centers on the fertilizer sector. This white paper therefore provides a welcome commercial perspective on the outlook for ammonia energy.