Access to significant and competitively priced long-term financing is a crucial piece of the puzzle to enable the energy transition. Green Finance and Green Bonds can directly contribute to the decarbonisation of ammonia and future production of green ammonia fuel, helping to deliver the Paris Agreement’s preferred target of keeping warming below 1.5 °C.
This week, two Norwegian companies, fertilizer producer Yara and electrolyzer manufacturer Nel, announced an agreement to test Nel's "next generation" alkaline electrolyzer at an ammonia production site. The parties expect to begin operating a 5 MW prototype in 2022, feeding green hydrogen directly into Yara's 500,000 ton per year ammonia plant at Porsgrunn.
The maritime industry has been engaged in a frenzy of research since April 2018, when the International Maritime Organization (IMO) announced its Initial GHG Strategy mandating a 50% reduction in shipping's emissions by 2050.
Three recent announcements illustrate the speed and depth of progress across a range of maritime stakeholders. In the government sector, the UK has launched its Clean Maritime Plan, which identifies ammonia as one of its strategic "clean growth opportunities." In finance, a coalition of 11 banks representing a shipping portfolio of around $100 billion has launched the Poseidon Principles to "redefine the role of banks in the maritime shipping sector." And class society ABS launched its Global Sustainability Center in Singapore to analyse, certify, and validate alternative fuels and new technologies; its Director of Global Sustainability will speak at the inaugural conference of the Ammonia Energy Association--Australia, held in Clayton, VIC, on August 22-23. His subject will be "Green ammonia as marine bunker fuel."
Yara International today published a video promoting Green Ammonia, which it states will be key to meeting its new corporate target of "making Yara carbon-neutral by 2050."
The timing of this publication is highly appropriate because, also today, we announce the full program for our 16th annual Ammonia Energy Conference, which features a Keynote Speech from Rob Stevens of Yara's Decarbonize division.
Last week Wärtsilä, the Finnish engine and energy equipment manufacturer, unveiled a concept for producing and distributing low-carbon maritime fuels from purpose-built facilities in the waters off northern Europe. Dubbed Zero Emission Energy Distribution at Sea (ZEEDS), the initiative is intended to help meet the International Maritime Organization’s target of halving the shipping sector's carbon dioxide emissions by 2050. And although Wärtsilä’s press release on June 3 mentions only “clean fuels,” the headline used by logistics-sector publisher Freight Week for their June 5 story is “Offshore fuel hubs to supply green ammonia for zero-emission future.”
ANNOUNCEMENT: The Japanese Government’s Cabinet Office and the Japan Science and Technology Agency have released an English-language video that summarizes the accomplishments of the Cross-Ministerial Strategic Innovation Promotion Program’s Energy Carriers initiative. The release coincides with the end-of-March conclusion of Energy Carriers’ work, and anticipates this month’s formal activation of the Green Ammonia Consortium.
In January 2019, the UK Department for Transport published a policy paper outlining its vision for the maritime sector over the coming decades. Among the many recommendations contained in Maritime 2050: navigating the future, is a medium-term objective to place "a group of hydrogen or ammonia powered domestic vessels in operation."
The "strategic ambition" driving this recommendation is the expectation that "the UK will ... lead the way in taking action on clean maritime growth enjoying economic benefits from being an early adopter or fast mover." Moving forward, these recommendations will be developed into policy in the government's forthcoming Clean Maritime Plan, scheduled to be published in Spring 2019.
Last year, Yara Sluiskil, in the Netherlands, upgraded its existing ammonia plant by introducing a hydrogen pipeline connection, thereby reducing its reliance on fossil fuels. The pipeline was commissioned in October 2018 and now "ensures the efficient and safe transport of hydrogen," which was previously a waste-product at Dow's nearby ethylene cracker. Already, the project "delivers a CO2 saving of 10,000 tons" and a decrease in energy consumption of "0.15 petajoules (PJ) per year."
This is, perhaps, the first ammonia plant decarbonization revamp, and it shows that it is both possible and affordable to reduce emissions from existing ammonia plants today.
Svalbard, the Norwegian archipelago that sits far above the Arctic Circle, is being considered for the back end of an electricity-to-ammonia-to-electricity (P2A2P) scheme. As reported in Norway's Teknisk Ukeblad (TU), the state-owned utility Statkraft has surfaced ammonia as one of four possible hydrogen-oriented solutions to meet Svalbard’s energy needs – and then short-listed it for further study.
Last week Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) announced the formation of a partnership that will support commercialization of CSIRO’s high-purity ammonia-to-hydrogen conversion technology. Michael Dolan, Principal Research Scientist for the ammonia-to-hydrogen project, had signaled such a development on the occasion of the technology’s first public demonstration in August 2018, saying in a contemporaneous Ammonia Energy post that the identity of “a major industrial partner” would be revealed shortly.
The partner turns out to be Fortescue Metals Group (FMG). A November 22 article in Business Insider Australia states that the company will invest “[AUD]$19.1 million [USD$13.8] in technology developed by the CSIRO to make hydrogen vehicles viable in a potential gamechanger for the transport industry.”