Last week, the International Maritime Organization (IMO) formally adopted its Initial GHG Strategy. This means that the shipping industry has committed to "reduce the total annual GHG emissions by at least 50% by 2050," and completely "phase them out, as soon as possible in this century."
This also means that a global industry is searching for a very large quantity of carbon-free liquid fuel, with a production and distribution infrastructure that can be scaled up within decades. The most viable option is ammonia. How much would be required? Roughly one million tons of ammonia per day.
The International Renewable Energy Agency (IRENA), in partnership with the International Energy Agency (IEA) and Renewable Energy Policy Network for the 21st Century (REN21), released a report this month entitled "Renewable Energy Policies in a Time of Transition." The 112-page document is a comprehensive survey of technologies, policies, and programs that have current or prospective roles in the global transition to a sustainable energy economy.
For the ammonia energy community, one of its conclusions stands out in vivid relief:
"Developing P2X is crucial because it plays a key role in decarbonising long haul road transport, aviation and shipping sectors that are difficult to decarbonize ... The overall recommendation for developing P2X is to focus on the development of ammonia for the shipping sector as well as long haul road transport, where few or no competing low carbon technologies exist and P2X is expected to be economically viable."
The Japanese manufacturer IHI Corporation announced on March 28 that it had successfully demonstrated the co-firing of ammonia and coal in a fuel mix composed of 20% ammonia. Ammonia-coal co-firing had previously been demonstrated by Chugoku Electric in a fuel mix composed of just 0.6-0.8% ammonia.
IHI says its ultimate goal is to “construct a value chain that connects the production and use of ammonia, using combustion technology of gas turbines and coal-fired boilers, using ammonia as fuel.”
Six months ago, in September 2017, I reported a $100 million joint venture announcement between Bayer and Ginkgo Bioworks that aimed to engineer nitrogen-fixing microbes, which could be put into seed coatings and provide nutrients to non-legume crops. Now, the joint venture has been named, and Joyn Bio is staffing up. For the ammonia industry, this represents potential demand destruction at a significant scale in the coming decades.
Twelve months ago, I wrote here that "the shipping industry is beginning to evaluate ammonia as a potential 'bunker fuel,' a carbon-free alternative to the heavy fuel oil (HFO) used in maritime transport." Around that time, I described the obstacle to adoption of ammonia fuel as an information gap, rather than a technology gap, because no new technology was required: the industry simply did not know about ammonia. This information gap had allowed the industry to believe that "CO2 reduction objectives will only be achievable with alternative marine fuels which do not yet exist." I'm glad to announce that this information gap is closing, and fast.
According to a report published last week by the International Transport Forum, the OECD's "think tank for transport policy," the use of "currently known technologies could make it possible to almost completely decarbonise maritime shipping by 2035." This conclusion requires the adoption of ammonia as a zero-carbon fuel.
Yara International, one of the world’s largest ammonia producers, is making strides in its development of green ammonia as a fertilizer, chemical intermediate, and energy carrier. The progress is documented in the company’s 2017 annual report, released last week, and in more detail in a presentation delivered in late February at the 2018 Nitrogen + Syngas Conference in Gothenburg, Sweden.
The NH3 Fuel Association has exciting plans for the 15th annual NH3 Fuel Conference!
Our 2018 offering will have much in common with the 2017 edition, but will also embody significant departures. As was the case in 2017, our annual event will be held over two days, scheduled in alignment with the American Institute of Chemical Engineers (AIChE) Annual Meeting. The key difference for 2018 is that it won’t be a single two-day conference; rather it will take the form of two separate conferences held on consecutive days.
On October 31, we will host the NH3 Energy+ Topical Conference within the AIChE Annual Meeting in Pittsburgh, Pennsylvania. And on the next day, November 1, we will present the inaugural NH3 Energy Implementation Conference, also in Pittsburgh albeit at a separate venue.
The Topical Conference’s call for abstracts is now open and interested parties can submit their abstracts through the AIChE Web site.
Earlier this month, I had the pleasure of speaking at the International Fertilizer Association's (IFA) conference on the subject of Innovations in Ammonia. A key point was the benefit of technology diversification: as with any portfolio, whether an investment account or a global industry's range of available technologies, concentration in any area represents risk, and diversification represents resiliency. Unfortunately, the ammonia industry has grown highly concentrated, and its dependency upon one technology and one feedstock represents significant risk in tomorrow's markets.
This article features five charts that aim to demonstrate why energy efficiency is insufficient as the only measure of technology improvement, why it is better to optimize instead of maximize, and why market evolution is necessary to support investment decisions in sustainable ammonia synthesis technologies.
Henrik Stiesdal is a distinguished figure in the field of wind energy. As such, he has had ample occasion to contemplate the field’s challenges and opportunities. Recently he concluded that ammonia may become an important part of wind energy’s future.
A chemicals technology firm in Belgium recently launched its vision for using green ammonia for "energy harvesting." The Dualtower is a new kind of wind turbine, under development by Arranged BVBA, that will use wind power to produce and also store hydrogen and nitrogen. These gases are "harvested" as ammonia, which becomes the energy carrier that allows large-scale renewable energy to be transported economically from remote locations with excellent renewable resources to centers of power consumption.
Arranged's Dualtower is ambitious and, perhaps, futuristic but it illustrates three powerful concepts. First, the vast untapped scalability of renewable power. Second, the benefits of using ammonia as an energy carrier, to improve the economics of large-scale, long-distance energy transportation relative to every other low-carbon technology. The third concept is simply that every idea has its time, and now may be the time for ammonia energy. What was once futuristic, now just makes sense.