The International Chamber of Shipping has published a short but powerful report to "endorse" the International Maritime Organization's Initial Strategy on Reduction of GHG Emissions from Ships, adopted in April 2018. The ICS report calls the IMO's Initial GHG Strategy "a historic agreement which the global industry, as represented by ICS, fully supports," and discusses four fuel technologies that could deliver the IMO's targets: batteries, hydrogen, ammonia, and nuclear.
The ICS report also demonstrates four realities, which apply, perhaps uniquely, to the maritime sector. First, corporations are driving change, in advance of government legislation. Second, these corporations are looking for more than incremental reductions in emissions and instead targeting total sectoral decarbonization with the ambition "to achieve zero CO2 emissions as soon as the development of new fuels and propulsion systems will allow." Third, they realize that LNG and other low-carbon fuels cannot meet these targets: "the ultimate goal of zero emissions can only be delivered with genuine zero CO2 fuels that are both environmentally sustainable and economically viable." Fourth, they recognize that, because ships are long-lived assets, the need to invest in zero CO2 fuel technologies is urgent and immediate.
Two new pilot projects for producing "green ammonia" from renewable electricity are now up and running and successfully producing ammonia.
In April 2018, the Ammonia Manufacturing Pilot Plant for Renewable Energy started up at the Fukushima Renewable Energy Institute - AIST (FREA) in Japan. Earlier this week, Siemens launched operations at its Green Ammonia Demonstrator, at the Rutherford Appleton Laboratory outside Oxford in the UK.
The commercial product coming out of these plants is not ammonia, however, it is knowledge.
While both the FREA and Siemens plants are of similar scale, with respective ammonia capacities of 20 and 30 kg per day, they have very different objectives. At FREA, the pilot project supports catalyst development with the goal of enabling efficient low-pressure, low-temperature ammonia synthesis. At Siemens, the pilot will provide insights into the business case for ammonia as a market-flexible energy storage vector.
The kernel of the story is this: Battolyser B.V. is taking a step forward with the battolyser, its eponymous energy storage technology. On June 12, Battolyser’s joint venture partners Delft University of Technology (TU Delft) and Proton Ventures announced that they had secured a €480,000 grant from Waddenfonds, a Dutch public-sector funding agency, to build a 15 kW/60 kWh version of the battolyser. The installation will take place at Nuon’s Magnum generating station at Eemshaven in the Netherlands. The move makes tangible the vision of the battolyser as an integral part of an energy supply system with a robust quota of renewably generated electricity.
The battolyser is a battery that stores electricity in the conventional galvanic manner until it is fully charged. At that point, the device uses any additional electricity supplied for the electrolysis of water and evolution of hydrogen. If the device is integrated with hydrogen buffer storage and an ammonia production train, the result will be a versatile and highly scalable energy storage system that can provide highly responsive grid support on all time scales from seconds to months. (Ammonia Energy last posted on the battolyser on March 1, 2018.)
Over the last few years, world-scale ammonia plants have been built, restarted, and relocated across the US. The last of these mega-projects began operations at Freeport in Texas last month. No more new ammonia plants are currently under construction in the US, and the received industry wisdom is that no more will begin construction.
However, project developers and ammonia start-ups did not get this memo. With low natural gas prices persisting, they have not stopped announcing plans to build new plants. The difference is that the next tranche of new ammonia plants breaking ground will not be world-scale but regional-scale, with production capacities of perhaps only one tenth the industry standard. Despite using fossil feedstocks, these plants will set new efficiency and emissions standards for small-scale ammonia plants, and demonstrate novel business models that will profoundly alter the future industry landscape for sustainable ammonia technologies.
Approximately 40% of the world’s energy budget is consumed in the generation of electricity. This is by far the largest use of primary energy across major energy-consuming sectors (transportation, industry, etc.). What role ammonia will play in the electricity sector is therefore a question of considerable importance for the sustainable energy system of the future. One concept currently on the table is power-to-ammonia as a means of electricity storage, whereby electricity is used to produce hydrogen and the hydrogen is reacted with nitrogen to produce ammonia. The other, mirror-image, concept is to use ammonia, or hydrogen derived from ammonia, as a fuel that can be turned into electricity.
This “back-end” use case is the focus of recent announcements from Mitsubishi Hitachi Power Systems (MHPS). According to an April 5 story in the Nikkei Sangyo, MHPS plans to put a “hydrogen-dedicated gas turbine . . . into practical use by 2030.” The company also stated that it has “started developing technology to extract hydrogen from ammonia,” citing ammonia’s ease “to store and transport.”
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.”
New ammonia production capacity is being built in southern Africa. The outputs will support agricultural development in the region – but could also support development of ammonia as a universal energy commodity. A British start-up company is currently at work to develop a beachhead use case for ammonia energy.
Proton Ventures and Delft University of Technology (TU Delft), both of the Netherlands, announced in early February the formation of a new company, Battolyser B.V. The company’s initial goal is to build and demonstrate a pilot version of the eponymous technology that stores electricity and produces hydrogen. Hans Vrijenhoef, who will direct the new company, indicated that a fully realized system would include an ammonia production train so that the hydrogen could be stored and transported at low cost. Vrijenhoef is already the Director of Proton Ventures B.V., a member of the NH3 Fuel Association’s Global Federation Advisory Board, and the originator of the NH3 Event power-to-ammonia conference.
Last month, an important new consortium in the Netherlands announced its intention to research and demonstrate "the technical feasibility and cost effectiveness of an ammonia tanker fuelled by its own cargo." This two-year project will begin with theoretical and laboratory studies, and it will conclude with a pilot-scale demonstration of zero-emission marine propulsion using ammonia fuel in either an internal combustion engine or a fuel cell.
This week, the government of South Australia announced a "globally-significant demonstrator project," to be built by the hydrogen infrastructure company Hydrogen Utility (H2U). The renewable hydrogen power plant will cost AUD$117.5 million ($95 million USD), and will be built by ThyssenKrupp Industrial Solutions with construction beginning in 2019.
The plant will comprise a 15 MW electrolyzer system, to produce the hydrogen, and two technologies for converting the hydrogen back into electricity: a 10MW gas turbine and 5MW fuel cell. The plant will also include a small but significant ammonia plant, making it "among the first ever commercial facilities to produce distributed ammonia from intermittent renewable resources."