Category: Government Initiative

Ammonia Energy Coming on Like Gangbusters in Australia

NH3FA.Oz, the Australian chapter of the NH3 Fuel Association, held a meeting on August 30 in approximate observance of its one-year anniversary.  John Mott, one of the founders of NH3FA.Oz and a member of the NH3 Fuel Association’s Advisory Board, reported that more than two dozen stakeholders from academia, industry, and the public sector participated.  The meeting came on the heels of the rapid-fire release of three significant reports, and preceded by a week the announcement of an important set of research grants.  The meeting, the reports, and the announcement all made clear that ammonia  is fast becoming a fixture in Australian energy policy.

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Shigeru Muraki to give Keynote Address at the NH3 Energy Implementation Conference

The NH3 Fuel Association has announced that Shigeru Muraki, Director of Japan's SIP Energy Carriers Program and Chairman of the Green Ammonia Consortium, will give the keynote address at the NH3 Energy Implementation Conference, which will take place on November 1, in Pittsburgh, PA. Other details of the Implementation Conference were released at the same time.

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Hydrogen Plans Appear, But Where Is Ammonia?

The concept of hydrogen as the centerpiece of a sustainable energy economy continues to gain momentum.  It is the focus of recent reports from France and the United Kingdom that consider the topic from two distinct but surprisingly convergent national perspectives.  And while ammonia is not given a role in either treatment, this seems to be because the authors' thinking has not arrived at a level of detail where ammonia's virtues become salient.

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South Korea to Launch Major Fuel Cell Vehicle Initiative

Where will fuel cell vehicles (FCVs) first achieve critical mass?  Japan and California spring to mind as likely jurisdictions.  South Korea not so much.  That situation could change, though, with recent announcements from the Ministry of Trade, Industry, and Energy (MTIE) in Seoul.  In fact, planned public and private sector investments could push South Korea to the front of the FCV pack.

But while hydrogen-related activity of this nature can create opportunities for ammonia energy, the question always looms: are the key players in the implementing jurisdiction aware of the enabling roles ammonia can play?  Hyundai is unquestionably a key player in South Korea’s FCV landscape, and, courtesy of its support for the Australian ammonia-to-hydrogen fueling demonstration that will kick off in August, Hyundai is certainly aware, and could even become a champion, of ammonia-based FCV fueling.

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On the Ground in Japan: 5th Basic Energy Plan, LH2 Investment

Japan, widely recognized as a global leader in the development and implementation of ammonia energy, is a fascinating case study for advocates seeking a template for progress.  But, as Ammonia Energy has documented in numerous posts over the last two years, even in Japan the path is neither linear, smooth, nor preordained.  Two recent developments, one in the public sector and one in the private, illustrate anew the complexity of the evolutionary track the country is negotiating as it strives to create a sustainable energy economy.

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International Chamber of Shipping endorses “Reducing CO2 Emissions to Zero,” with ammonia as a maritime fuel

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.

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A Roadmap for The Green Hydrogen Economy in the Northern Netherlands

A number of green ammonia projects have been announced in the Netherlands since the influential Power-to-Ammonia feasibility study was published in early 2017. Perhaps the most important publication since then, however, is the roadmap published by The Northern Netherlands Innovation Board, The Green Hydrogen Economy in the Northern Netherlands. Its scope, including sections written by consultants from ING, Rabobank, and Accenture, goes well beyond the standard techno-economic analysis and presents a cogent plan for coordinated development of "production projects, markets, infrastructure and societal issues."

Green ammonia features heavily throughout the roadmap, which calls for the construction of 300,000 tons per year of renewable ammonia production in Delfzijl by 2024, as well as for large-scale imports of green ammonia, starting in 2021, which would provide low-cost delivery and storage of carbon-free fuel, cracked into hydrogen, for the Magnum power plant.

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Carbon Capture Set to Advance in the U.S.

The United States Congress passed a measure on February 9 that could galvanize the production of low-carbon ammonia in the U.S.  The measure, included within the Bipartisan Budget Act of 2018, amends Section 45Q of the Internal Revenue Code, titled “Credit for Carbon Dioxide Sequestration”.  That section, originally adopted in 2008, created a framework of tax credits for carbon capture and sequestration.  45Q’s impact in the intervening years has been minimal, an outcome attributed by experts to the relatively low prices assigned to CO2 sequestration and the fact that tax credits would be allowed only for the first 75 million tonnes of sequestered CO2.  The new legislation increases the tax credit per tonne of CO2 placed in secure geological storage from $20 to $50, and for CO2 used for enhanced oil recovery from $10 to $35.  It eliminates the credits cap altogether.  With these changes, it now seems possible that low-carbon ammonia could find itself on an equal economic footing with “fossil” ammonia – and this could have consequences well beyond American agricultural markets.

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Toyota Supports H2 Society Roll-Out on Its Home Turf; Sees Role for NH3

Toyota Motor Corporation announced on April 25 the launch of an effort called the Chita City and Toyota City Renewable Energy-Use Low-Carbon Hydrogen Project.  According to the company’s press release, the project is intended as a step toward “the realization of a hydrogen-based society spanning the entire region through mutual coordination and all-inclusive efforts.” 

For ammonia energy advocates, the announcement had two elements of particular significance. First is the clear indication that Toyota Motor Corporation is embracing ammonia as a hydrogen carrier – although not as a motor fuel.  Second is the project’s stated intention to establish a “system in which Aichi Prefecture certifies low-carbon hydrogen objectively and fairly.”

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What drives new investments in low-carbon ammonia production? One million tons per day demand

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.

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