Site items in: CCUS

Certification of low-carbon ammonia: panel wrap-up from the 2020 Ammonia Energy Conference

What are the key considerations that need to be worked through so we can design and implement a certification scheme for low-carbon ammonia that works for a diverse range of stakeholders? On November 17, 2020, the Ammonia Energy Association (AEA) hosted a panel discussion on the topic as part of the recent Ammonia Energy Conference. Not only was it valuable to find out what important players in the ammonia industry want to see in any future certification scheme, but the panel also kicked off a consultation process among AEA members. An audience of around one hundred and fifty producers, end users and researchers all gave their thoughts on what they would like to see in a future scheme, providing a terrific launching point for the AEA Certification Committee to draft, develop and debut a low-carbon ammonia certification scheme.

Saudi Arabia ships low-carbon ammonia to Japan

Last week, Saudi Aramco and the IEEJ attracted significant media attention when they announced that the first “blue” ammonia has been shipped to Japan. Aramco’s celebration of this shipment of 40 tons of ammonia (not 40 thousand or 40 million, just 40 tons) raises many questions, but makes three things clear. First, projects to demonstrate the carbon footprint of specific batches of low-carbon ammonia are now underway, and these case studies will inform the design of an international low-carbon ammonia certification scheme. Second, there is an urgent need to establish definitions across the industry, or risk losing credibility. Third, Aramco (absolutely the most profitable company in the world, with over a hundred oil and gas fields and almost 300 trillion scf of natural gas reserves) has sent a clear signal that it intends to make and sell ammonia as a decarbonized energy commodity.

Flattening the climate risks curve

The COVID-19 pandemic is a human tragedy of epic proportions. It directly affects the life and livelihoods of people all around the world as an unprecedented healthcare and economic crisis. It is clear by now that COVID-19 marks an inflection point or “black swan” event in history that will have a shaping influence on society and the economy for many years to come; a post COVID-19 era will begin. In the same way that the developing renewable energy industry significantly benefited from the economic stimulus packages to address the financial crisis of 2008/2009, we now have the opportunity to kick-start the next important phase of global CO2 emissions reduction through support of the developing CO2 Capture, Utilization and Storage (CCUS) & Clean Hydrogen Economy. Many of these clean technologies have been proven at industrial scale and implementation has started. Still, commercial projects will continue to need financial incentives for broad deployment that will enable accelerated technology maturation and reductions in project risk and cost. With the support from COVID-19 stimulus packages, the private sector will be able to execute CCUS & Clean Hydrogen projects in the near-term, secure and create jobs, grow the economy and mitigate the risk of “green swan” climate change events through significant CO2 emissions reduction.