On February 8, the Royal Society released a policy briefing entitled “Options for producing low-carbon hydrogen at scale.” The briefing evaluates the technical and economic aspects of hydrogen production methods and concludes that it is indeed feasible to produce low-carbon hydrogen at scale. Part of that feasibility, the briefing says, could be based on the use of ammonia as an expedient for hydrogen transport and storage.
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."
One of Ammonia Energy’s “top ten” stories of 2017 described Australia’s early steps toward export of renewable hydrogen in the form of green ammonia. The story said that “Agencies such as the Australian Renewable Energy Agency (ARENA) made it clear during the year that the country intends to build on [its historical] position” as a supplier of fossil energy to countries such as Japan.
ARENA took a tangible step in this direction on December 20, 2017 with the release of a Request for Proposal for a AUD$20 million (USD$16 million) renewable hydrogen R&D funding program. Included in the scope, per ARENA’s 2017 Investment Plan, could be “demonstration of renewable production methods for transportable energy storage options (such as hydrogen or ammonia).”
This morning in Beijing, China, the International Energy Agency (IEA) launched a major new report with a compelling vision for ammonia's role as a "hydrogen-rich chemical" in a low-carbon economy.
Green ammonia would be used by industry "as feedstock, process agent, and fuel," and its production from electrolytic hydrogen would spur the commercial deployment of "several terawatts" of new renewable power. These terawatts would be for industrial markets, additional to all prior estimates of renewable deployment required to serve electricity markets. At this scale, renewable ammonia would, by merit of its ease of storage and transport, enable renewable energy trading across continents.
The IEA's report, Renewable Energy for Industry, will be highlighted later this month at the COP23 in Bonn, Germany, and is available now from the IEA's website.
On August 1, 2017 the Japan Government’s New Energy and Industrial Technology Development Organization (NEDO) announced that it will proceed with funding for the construction of a hydrogen production plant in Namie Township, about ten kilometers from the site of the Fukushima nuclear disaster. The project’s budget is not mentioned, but the installation is projected to be “the largest scale in the world” -- in other words, a real bridge to the future and not a demonstration project.
The project no doubt has a variety of motivations, not least the symbolic value of a renewable hydrogen plant rising in the shadow of the Fukushima Daiichi nuclear station. In economic terms, though, it appears to be a dead end. This is unfortunate because a similarly conceived project based on ammonia could be a true bridge-building step that aligns with leading-edge developments elsewhere in the world.
In the last 12 months ...
Ammonia energy has gained recognition from the United States Department of Energy, in both bottom-up and top-down programs. This establishes ammonia energy in the world’s largest economy as a legitimate target for both public- and private-sector investment.
Yara, the world's biggest producer of ammonia, has announced that it intends to build a demonstration plant to produce ammonia using solar power, near its existing world-scale plant in the Pilbara, in Western Australia.
It expects to complete the feasibility study this year. Next year, in 2018, Yara hopes to finish the engineering design and begin construction so that it can complete the project and begin production of carbon-free ammonia in 2019.
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 International Energy Agency (IEA) has just published Energy Technology Perspectives 2017, the latest in its long-running annual series, subtitled "Catalysing Energy Technology Transformations."
In this year's edition, for the first time, ammonia is featured in two major technology transformations. First, ammonia production is shown making a significant transition away from fossil fuel feedstocks and towards electrification, using hydrogen made with electrolyzers. And, following this assumption that sustainable ammonia will be widely available in the future, the IEA takes the next logical step and also classifies ammonia "as an energy carrier," in the category of future "electricity-based fuels (PtX synthetic fuels)."
The inclusion of this pair of technology transformations represents a major step towards broader acceptance of ammonia as an energy vector, from the perspectives of both technical feasibility and policy imperative.
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.