In the first stage of Project Gaucho, 3 GW of electrolysers will be powered by a 4.2 GW wind farm, leading to the production of up to 1.7 million tons of ammonia per year. RP Global and German development agency GIZ will develop the project, supported by an official German government program for ramping up the nascent hydrogen industry.
Fortescue Future Industries has been hitting the Ammonia Energy headlines of late. All of these various announcements point towards a singular target, announced in June by Fortescue Chairman Andrew Forrest: the supply of 15 million tonnes green hydrogen to global markets by 2030. Taken on their own these are significant steps, but COP26 was also the stage for a number of other significant ammonia and hydrogen-related announcements by FFI. Over the last fortnight we've seen the launch of green ammonia production projects in Papua New Guinea, Jordan & Argentina, buyers announced for a full 10% of FFI's global green hydrogen production, a partnership to decarbonise aviation and more developments in the electrolyser space.
Last week IEA Consultant Julien Armijo and IEA Senior Analyst Cédric Philibert submitted their study Flexible Production of Green Hydrogen and Ammonia from Variable Solar and Wind Energy: Case Study of Chile and Argentina to the International Journal of Hydrogen Energy and concurrently posted it on ResearchGate. The study addresses one of the key questions of the energy transition: what are the economics of producing hydrogen, or a hydrogen carrier such as ammonia, at sites with excellent renewable energy resources? The answer, framed in terms of the cost-competitiveness in local markets of green ammonia vs. conventionally produced brown ammonia, casts an encouraging light on the eventual prospects for international trade in green ammonia as an energy commodity.
The International Energy Agency has completed two reports that examine the economics of hydrogen and ammonia production based on wind and solar electricity generation. Both reports were written by IEA Consultant Julien Armijo under the supervision of IEA Senior Analyst Cédric Philibert. One focuses on China and formalizes the findings and conclusions that were the subject of a February 2019 Ammonia Energy post. The other focuses on Chile and Argentina. Both reports cast an encouraging light on the near-term cost-competitiveness of green ammonia vs. conventionally produced brown ammonia in specific national markets.