Peak industry body Hydrogen Europe has released a new report on the potential of clean ammonia production & utilisation in Europe. Although the introduction of renewable hydrogen feedstock presents an obvious opportunity to decarbonise the ammonia industry in Europe, the potential downstream applications of ammonia energy are being neglected by policymakers - particularly power generation and maritime fuel.
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EU policy developments: CBAM & rules for emissions accounting
MEPs have voted to alter the scope of the upcoming Carbon Border Adjustment Mechanism (CBAM) to include hydrogen & ammonia, and for the scheme to cover indirect emissions from manufacture. Meanwhile, two Delegated Acts have established a starting point for rules governing the production of alternative fuels from electrolytic hydrogen, including definitions of “fully renewable” hydrogen and a comprehensive emissions accounting calculation. The European Commission will work with key stakeholders to further clarify and improve the new rules.
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Fit for 55: Tax breaks, border tariffs, and Guarantees of Origin in the EU
Details of the Commission's comprehensive climate legislation package are now public. Relevant highlights include the inclusion of shipping into the EU ETS, a new tier system for fuel taxation and a carbon border adjustment mechanism. Also this week, Hydrogen Europe calls for an overhaul of the existing Guarantee of Origin (GO) system to address current shortcomings in clean hydrogen certification.
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Europe! (continued)
Last week Ammonia Energy published “Europe!”, an article describing the European Commission’s Green Deal and the related appearance of national hydrogen strategies from several European countries. This week we have an article that describes another consequential European initiative that, while related to the Green Deal, is running on a distinct track: the Clean Hydrogen Alliance. Along the way a clear call to action has been sounded for the ammonia energy community.
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Ammonia Featured in Hydrogen Europe Roadmaps Report
By definition, members of the ammonia energy community see ammonia as the preferred form of hydrogen in many applications. Until recently, this view was not shared by most members of the hydrogen energy community. Where there was awareness at all, ammonia was often seen as dangerous or irrelevant. However, since the middle years of this decade a transition has been occurring. Lack of awareness and wariness (let’s call this stage 1) is giving way to interest in and exploration of ammonia’s potential role in discrete applications (stage 2). At some point, we may arrive at a third stage. This will be characterized by the development of sustainable energy systems that have been cost-optimized with ammonia as a staple energy commodity. In this scenario, elemental hydrogen will be the supporting actor that appears only in discrete contexts. Hydrogen, Enabling a Zero Emission Europe, Technology Roadmaps, a report released in September 2018 by the advocacy group Hydrogen Europe, perfectly exemplifies the stage 2 mindset. Ammonia energy is discussed in a handful of instances as a narrow-scope expedient. To be sure, the report implies, ammonia could be a part of the solution. But it also might not pan out at all.