Category: Government Initiative

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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P2X, Ammonia Highlighted for Long-Haul Road Transport, Shipping

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."

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Decarbonising Maritime Transport: OECD report sees ammonia fuel enabling carbon-free shipping by 2035

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.

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On the Ground in Japan: Hydrogen Activity Accelerates

A recent Ammonia Energy post mentioned that in December 2017 “the Japanese government . . . approved an updated hydrogen strategy which appears to give ammonia the inside track in the race against liquid hydrogen (LH2) and liquid organic hydride (LOH) energy carrier systems.”  While this news is positive, the hydrogen strategy remains the essential context for economic implementation of ammonia energy technologies in Japan; ammonia’s prospects are only as bright as those of hydrogen.  This is why Ammonia Energy asks from time to time, how is hydrogen faring in Japan?

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Renewable ammonia demonstration plant announced in South Australia

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."

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Japan, Saudi Arabia Explore Trade in Hydrogen, Ammonia

Japan and Saudi Arabia are together exploring the possibility of extracting hydrogen from Saudi crude oil so that it can be transported to Japan in the form of ammonia.

According to a synopsis of the planned effort, “one option for Japan’s material contribution to reducing greenhouse gas emissions [would be] a supply chain for carbon-free hydrogen and ammonia produced through CCS from Saudi Arabian fossil fuels.”  The synopsis emerged from a September 2017 workshop sponsored by Saudi Aramco and the Institute of Energy Economics, Japan (IEEJ). 

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