Site items in: Chile

Green Ammonia Plants in Chile, Australia, New Zealand
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Green ammonia plants are being announced quicker than I can report. Here is a summary of four new projects that propose to use electrolyzers, fed by renewable power, to produce hydrogen for ammonia production. These are big companies, operating in regions with excellent renewable resources, making significant investments in their future. In Chile, it is Enaex, a major ammonium nitrate manufacturer, supplying explosives to the mining industry. In Australia, it is Incitec Pivot, "the second largest supplier of explosives products and services in the world," and Wesfarmers, "the largest Australian company by revenue," according to Wikipedia. In New Zealand, it is Ballance-Agri Nutrients, a big farmers' co-operative and the country's sole fertilizer producer. Each aims to make its business "future-proof." The transition from fossil ammonia to renewable ammonia is underway.

Study Models NH3 Economics from Variable Energy Resources
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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.

IEA Completes Two Power-to-Ammonia Reports
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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.