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McKinsey report on industrial decarbonization examines pathways to green ammonia

McKinsey & Company, the global consulting firm, recently published a report that analyzes the "Decarbonization of industrial sectors," with a focus on the four heaviest emitters: cement, steel, ammonia, and ethylene production. "We conclude that decarbonizing industry is technically possible ... We also identify the drivers of costs associated with decarbonization and the impact it will have on the broader energy system." Of course, "technical and economical hurdles arise," but the report provides valuable analysis of the economic levers that will be required.

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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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Toyota, 7-Eleven to Cooperate on Low-Carbon Convenience Stores

Last month, one Ammonia Energy post discussed Toyota’s participation in a Low-Carbon Hydrogen Project in its home prefecture -- including implicit support for ammonia as a hydrogen carrier.  Another post discussed Japanese manufacturer IHI’s plans to commercialize a small-scale combined heat and power system (micro CHP) based on direct ammonia solid oxide fuel cell technology.  Now, according to a June 6 Toyota Motor Corporation press release, Toyota and micro CHP have converged. The announcement served as the unveiling of a “joint project” by Toyota and the convenience store chain 7-Eleven to develop “next-generation convenience stores aiming to considerably reduce CO2 emissions.”  The two companies initially agreed to cooperate in August 2017 on "considerations toward energy conservation and carbon dioxide emission reduction in store distribution and operation.”

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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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Sawafuji Moves toward Commercialization of NH3-to-H2 System

On May 28 Sawafuji Electric Company issued a press release detailing advances made over the last year on the ammonia-to-hydrogen conversion technology it has been jointly developing with Gifu University.  The main area of progress is the rate of hydrogen generation, but the key takeaway from the announcement is that Sawafuji has set a schedule that culminates in product commercialization in 2020.

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All together now: every major ammonia technology licensor is working on renewable ammonia

The second annual Power to Ammonia conference, which took place earlier this month in Rotterdam, was a tremendous success. It was again hosted by Proton Ventures, the Dutch engineering firm and mini-ammonia-plant pioneer, and had roughly twice as many attendees as last year with the same extremely high quality of presentations (it is always an honor for me to speak alongside the technical wizards and economic innovators who represent the world of ammonia energy). However, for me, the most exciting part of this year's event was the fact that, for the first time at an ammonia energy conference, all four of the major ammonia technology licensors were represented. With Casale, Haldor Topsoe, ThyssenKrupp, and KBR all developing designs for integration of their ammonia synthesis technologies with renewable powered electrolyzers, green ammonia is now clearly established as a commercial prospect.

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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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NH3 Energy+ and Food Security

A guest editorial by Norm Olson, President of the NH3 Fuel Association. In 2004, the NH3 Fuel Association began promoting NH3 as the best alternative fuel choice to replace gasoline and diesel fuel. Recently, I have been using the "NH3 Energy+" title in place of "NH3 Fuel" in presentations to illustrate that the benefits of NH3 go beyond fuels and go beyond energy storage (as important as these two items are). NH3 also provides a tremendous opportunity to significantly improve world food security and enable sustainable, local food production.

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Carbon Pricing and the Economics of Green Ammonia

The United States Senate is expected to open confirmation hearings for Secretary of State nominee Rex Tillerson on January 11. Tillerson, newly retired from Exxon Mobil, became the chief executive officer of that company in 2006. He has attracted many labels since his nomination was announced, but “climate denier” is not among them.