Tag: BayoTech

Small-scale ammonia: where the economics work and the technology is ready

The movement toward small-scale ammonia is accelerating for two reasons. First, small ammonia plants are flexible. And, second, small ammonia plants are flexible.

They are feedstock-flexible, meaning that they can use the small quantities of low-value or stranded resources that are widely available at a local scale. This includes flared natural gas, landfill gas, or wind power.

And they are market-flexible, meaning that they can serve various local needs, selling products like fertilizer, energy storage, or fuel; or services like resource independence, price stability, or supply chain robustness.

While the scale of these plants is small, the impact of this technology is big. As industry-insider publication Nitrogen+Syngas explained in its last issue, "as ammonia production moves toward more sustainable and renewable feedstocks the ammonia market is facing a potentially radical change."

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Small-scale ammonia production is the next big thing

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.

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