Techno-economic Considerations for Ammonia Production, Storage, and Transportation

Abstract

AbstractAmmonia is a feedstock for the fertilizer industry and the chemical industry, currently mainly produced from fossil feedstocks such as natural gas and coal. Renewable ammonia production accounts for only 0.01% of the current global ammonia production. However, decarbonization of the global economy also requires decarbonization of ammonia production, for current uses and for new applications. Future markets for low-carbon ammonia include its use as a decarbonized fuel and hydrogen carrier. In the current Chapter, the ammonia market is briefly highlighted. Furthermore, the production cost of ammonia production from fossil sources, as well as carbon capture and storage (CCS) is discussed, after which the production cost of renewable ammonia production is discussed. The storage and transportation of ammonia are key for ammonia as a decarbonized energy vector in the hydrogen economy and is briefly discussed thereafter. Various case studies are presented regarding recently announced low-carbon ammonia projects. The Chapter is concluded with some final remarks regarding the techno-economics of ammonia production, storage, and transportation. Highlights: • Renewable ammonia has almost achieved cost parity with fossil-based ammonia production, especially due to increasing CO2 taxation and decreasing electricity cost from solar and wind. • Size still matters for renewable ammonia plants, due to economies of scale. Small-scale ammonia can work well if constrained within a local energy system, but not within the global commodity market. • Renewable ammonia will be a commodity for current uses, such as fertilizers (nitrogen), as well as for new energy markets (hydrogen). Large-scale renewable ammonia projects have recently been announced, up to 10 million tons of ammonia per year capacity. • The ammonia market is expected to grow to at least three times the current demand in 30 years, to roughly 600 million tons per year by 2050.KeywordsAmmoniaCarbon capture and storage (CCS)Renewable ammoniaCapExOpEx4