In the last 12 months ...
The extensive Power-to-Ammonia feasibility study demonstrated that ammonia energy could be economically viable in different business cases. The report was a collaborative effort by large European corporations - power companies, electricity distributors, chemical producers, engineering firms - and it has already resulted in plans for one 440 MW power plant to be converted to carbon-free fuel by 2023.
In the last 12 months ...
The maritime industry has begun assessing ammonia as a carbon-free fuel, for internal combustion engines and fuel cells. This marks the first time since the 1960s, when NASA used ammonia to fuel the X-15 rocket plane, that industry players have seriously considered ammonia for transport applications.
The NH3 Fuel Association (NH3FA) has released the names of the organization’s charter group of sponsors. The common thread that unites the six companies? A conviction that ammonia energy represents a significant opportunity for their businesses. The sponsors are Yara, Nel Hydrogen, Airgas, Haldor Topsoe, Casale, and Terrestrial Energy.
A new collaboration was announced last week, between Dutch power company Nuon, European natural gas pipeline operator Gasunie, and Norwegian oil major Statoil. The joint venture will look at converting one of the Magnum power plant's three 440 MW gasifiers, with hopes to have it running on hydrogen fuel by 2023.
This is the continuation of the Power to Ammonia project and, although ammonia is not expected to be used in this particular stage of the project, converting Magnum to hydrogen fuel represents the "intermediate step" to demonstrate that "where hydrogen could be produced using natural gas by 2023, from the year 2030 it could be possible to produce it with sustainably produced ammonia ... Ammonia then effectively serves as a storage medium for hydrogen, making Magnum a super battery."
The viability of producing ammonia using renewable energy was one of the recurring themes of the recent Power to Ammonia conference in Rotterdam. Specifically, what cost reductions or market mechanisms would be necessary so that renewable ammonia - produced using electrolytic hydrogen in a Haber-Bosch plant - would be competitive with normal, "brown" ammonia, made from fossil fuels.
A number of major industry participants addressed this theme at the conference, including Yara and OCI Nitrogen, but it was the closing speech, from the International Energy Agency (IEA), that provided the key data to demonstrate that, because costs have already come down so far, renewable ammonia is cost-competitive in certain regions today.
The maritime industry is beginning to show significant interest in using ammonia as a "bunker fuel," a sustainable alternative to the highly polluting heavy fuel oil (HFO) currently used in ships across the world.
In recent months, a firm of naval architects and a new maritime think tank have both been evaluating ammonia as a fuel. This includes a road map for future research, and collaborations for a demonstration project that will allow them to design and build a freight ship "Powered by NH3."
The Institute for Sustainable Process Technology (ISPT) recently published a detailed analysis of three business cases for producing renewable ammonia from electricity: Power to Ammonia. The feasibility study concludes that, in the near term, ammonia production using clean electricity will likely rely on a combination of two old-established, proven technologies: electrolysis and Haber-Bosch (E-HB). To reach this conclusion, however, the study also assessed a range of alternative technologies, which I summarize in this article.
The Power-to-Ammonia feasibility study includes an assessment of the costs and benefits of producing ammonia from renewable energy at OCI Nitrogen's existing production site in Geleen.
Of all the companies who joined forces in the Power-to-Ammonia project, OCI is the only ammonia producer. Its business case for making carbon-free ammonia is especially interesting therefore: not just because of the company's deep understanding of the ammonia market and available technologies, but also because it faces corporate exposure to the financial, operational, and social risks of relying upon a fossil-fueled technology in a carbon constrained future.
Goeree-Overflakkee, in the southwest corner of The Netherlands, already produces more renewable power than it can consume. But, by 2020, this small island will generate a full 300 MWe of solar and wind, which far "exceeds the electricity demand on the island, rated at maximum 30 MWe peak."
Stedin, the local grid operator, has the expensive task of integrating these and future renewable resources into its electricity distribution system.
The recent Power-to-Ammonia study included a detailed analysis of Stedin's business case for producing renewable ammonia as a way to store and transport this electricity - enabling the island to become a net exporter of clean energy.
The Institute for Sustainable Process Technology recently published a feasibility study, Power to Ammonia, looking at the possibility of producing and using ammonia in the renewable power sector. This project is based in The Netherlands and is led by a powerful industrial consortium.
I wrote about the feasibility study last month, but it deserves closer attention because it examines three entirely separate business cases for integrating ammonia into a renewable energy economy, centered on three site-specific participants in the study: Nuon at Eemshaven, Stedin at Goeree-Overflakkee, and OCI Nitrogen at Geleen.
Over the next few years, the group intends to build pilot projects to develop and demonstrate the necessary technologies. Next month, however, these projects will be an important part of the Power-to-Ammonia Conference, in Rotterdam on May 18-19.
This article is the first in a series of three that aims to introduce each business case.