BASF has successfully delivered its first shipment of BMBcertTM grade ammonia to Evonik. Produced via a “biomass balanced approach”, the ammonia will be used by Evonik to manufacture a range of products, including resins, paints, shoe soles, and gas pipes.
Welcome to the Ammonia Wrap: a summary of all the latest announcements, news items and publications about ammonia energy. This week: two new large-scale ammonia projects in the UAE, RWE, BASF combine for 2 GW "Offshore-to-X" project, green ammonia exports from Tasmania, coal co-combustion trials in Japan, Japanese shipping industry chases decarbonisation, South Korean companies join together in local green ammonia consortium, new funding for ammonia-from-wastewater research and Horisont Energi and Equinor join forces for the Polaris project.
Most hydrogen today is produced from fossil fuels – steam methane reforming of natural gas, partial oxidation of coal or oil residues – and entails large CO2 emissions. This fossil hydrogen can be called “grey hydrogen”. Or sometimes, brown. The same color scheme applies to the ammonia produced from it, so we have “grey ammonia.” Or brown ammonia, your call. The exact carbon footprint depends on the fuel used and the efficiency of the facility, so you could easily identify many shades of grey. There is, however, another option to deliver clean hydrogen – and now another colour: turquoise, or green-blue (or blue-green). This is the colour of hydrogen from methane pyrolysis, a process that directly splits methane into hydrogen and solid carbon. Instead of being a waste, like CO2, that must be disposed of safely, solid carbon is potentially a resource.
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.