Site items in: Renewable Ammonia

Industry consortium announces feasibility study for co-firing ammonia in thermal power plants
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In March 2020, IHI Corporation, JERA Co., and Marubeni Corporation announced a feasibility study "to evaluate possible applications for the co-firing of ammonia in thermal power plants." The Japanese companies have contracted with NEDO to deliver detailed technical and economic analysis on the use of ammonia as a direct fuel for power generation. In addition, with support from Woodside Energy in Australia, they "will examine the construction and operation of world-scale ammonia facilities and the optimisation of supply chain costs" to support "large-scale export of hydrogen as ammonia."

Green Financing Sighted in Australia's Ammonia Industry
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Last month the Commonwealth Bank of Australia (CBA) announced that it has “signed an AUD $400 million [USD $256 million] three-year bilateral sustainability-linked loan” with Australian conglomerate Wesfarmers. This represents at least the second occasion on which an ammonia producer has linked its cost of capital to progress in meeting sustainability goals. In July 2019, Yara announced that it had signed a USD $1.1 billion revolving credit facility with a group of 13 lenders whose margin “will be adjusted based on Yara’s progress to meet its carbon intensity target by 2025.”

Green ammonia plants win financing in Australia and New Zealand
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In recent weeks, governments in Australia and New Zealand have announced major financial awards to accelerate development of local green ammonia plants. In Australia, ARENA awarded AU $995,000 (US $0.6 million) to Yara and ENGIE for their solar ammonia pilot at Yara Pilbara. In New Zealand, the Provincial Growth Fund gave NZ $19.9 million (US $11.3 million) to Ballance-Agri Nutrients and Hiringa Energy for their wind-fed ammonia plant at Kapuni. Both projects will demonstrate that an existing fossil ammonia plant can be decarbonized in increments. Renewable hydrogen can be introduced in small amounts, displacing only a fraction of the plant's natural gas consumption but demonstrating and de-risking the technologies. Then, the renewable energy farms and electrolyzers can be scaled-up in stages, eventually replacing all the natural gas requirements and completing the conversion of a fossil asset to a renewable asset.

South Australia Planning Hydrogen Export Strategy
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The state of South Australia earlier this month issued a tender for professional services under the title “Hydrogen Export Study, Modelling Tool and Prospectus.” The tender is a further step in the state’s campaign to become a major exporter of renewable energy in the form of green and/or blue hydrogen. The results of the study are expected to “inform key considerations such as locations for hydrogen production and export, volume of supply potential, the interdependencies of hydrogen supply chain infrastructure, and the landed cost of clean hydrogen exported from South Australia.”

Ammonia as a unicorn technology and the UK's opportunity for COP26
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The Guardian newspaper in the UK this week published a comment piece on ammonia's potential as a "unicorn technology," which the authors define as a technology that can "deliver a reduction of at least a billion tonnes of CO2 a year." The article focused on the UK's opportunity, as host of the upcoming COP26 meeting in Glasgow this November, to take a leadership position in solving climate change. The authors, all based at the University of Oxford, outline a strategy by which the UK government could leverage existing British business and academic expertise to build global coalitions, to develop, demonstrate, and roll out "the 'hydrammonia' economy."

H2U moves forward with 3 GW green ammonia export plant
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According to a statement released by the Queensland government last week, the clean infrastructure development firm Hydrogen Utility (H2U) has purchased a 171-hectare site in Gladstone, Queensland, where it intends to build a green ammonia export plant with initial operations beginning in 2025. This "H2-Hub" will be built in stages, scaling up over time to reach up to 3 GW electrolyzer capacity for green hydrogen production, and up to 5,000 tons per day of green ammonia. This is at least twice the size of a conventional natural gas-based world-scale ammonia plant.

Royal Society publishes Green Ammonia policy briefing
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This week, the UK's Royal Society published an influential "Green Ammonia" policy briefing on ammonia as a "zero-carbon fertiliser, fuel and energy store." Rather than provide a comprehensive summary here — the Royal Society policy briefing is freely available to download — I want to focus only on four specific figures. These four illustrations repackage previously available data in valuable new ways, communicating key insights around the barriers to and opportunities for ammonia energy.

Maritime decarbonization is a trillion dollar opportunity
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In January 2020, the Global Maritime Forum published new analysis that calculates "the capital investment needed to achieve decarbonization" in line with the International Maritime Organization's Initial GHG Strategy. The result of this analysis, which assumes that ammonia will be "the primary zero carbon fuel choice adopted by the shipping industry," is an aggregate investment of between $1 trillion and $1.4 trillion dollars, from 2030 to 2050, or roughly $50 to $70 billion per year across two decades. Ship-side costs are only 13% of this number. The bulk of the investment will be directed towards green ammonia plants for maritime fuel synthesis. By 2050, this global fuel demand is estimated to be more than 900 million tons per year of green ammonia, more than five time today's total global output of conventional ammonia.