Trammo will purchase & sell up to 100,000 tonnes per year of renewable ammonia from Iberdrola in Spain, starting in 2026. The agreement kickstarts a green hydrogen corridor linking southern and northern Europe, with Trammo to focus on ammonia sales to industrial customers.

Flexible ammonia production technology is currently scaling up to meet the challenges of fluctuating electricity feedstock. The ability to ramp down plants to 5 - 10% of their nominal load will minimize the requirement for hydrogen storage buffers and reduce the overall cost of renewable ammonia production. The first demonstration-sized flexible ammonia plants are due to begin operations later this year.

Electrolysis-based ammonia production peaked worldwide around 1970, before the economies of scale and cheap gas feedstock led to its decline. With decarbonization and climate-neutral industrial processes now a critical priority, electrolysis-based ammonia production has re-emerged as a long-term solution. From a base of 10,000 tonnes per year worldwide production in 2020, as much as 100 million tonnes per year of electrolysis-based ammonia could be produced by the end of this decade, driven by a dramatic roll-out of renewable energy generation and installed electrolyzer capacity.

For the latest episode of Ammonia Project Features, we explored the ongoing renewable ammonia project in Puertollano, Spain. Marc van Doorn (Grupo Fertiberia) and Imanol Arrizabalaga Prado (Nel ASA) discussed progress to date and technologies used at the first large-scale, electrolysis-based hydrogen facility in Europe, which is operated by renewable energy developer Iberdrola. We also considered what other pioneering projects are on the horizon, and how can electrolyzer manufacturers like Nel scale-up to meet growing demand?

Iberdrola and bp will form a new joint venture focused on renewable hydrogen, ammonia and methanol production. Hubs in the UK, Spain and Portugal will be powered by new-build renewable energy, with the first project to be development of a renewable hub at bp’s existing Castellón refinery in Spain.

Three key first-movers at Ammonia Energy - NEOM, Yara and Fertiberia - have all made significant steps towards green ammonia production in recent times. With the launch of a new subsidiary to develop hydrogen & ammonia production, NEOM can possibly begin construction of its green hydrogen plant this month. Also this week, Yara held a groundbreaking ceremony at Heroya, with the intention to bring green ammonia and fertilisers to market by mid-2023. And a few months ago in December, green hydrogen storage tanks arrived at Fertiberia’s Puertollano ammonia plant, ready for installation.

Grupo Fertiberia will work with the local government of Norbotten Region, Sweden to develop of a EUR 1 billion green ammonia & fertiliser plant. Powered by a mixture of wind and hydropower, Project "Green Wolverine" will feature 600 MW of electrolysers and produce 500,000 tonnes per year of carbon-free ammonia.

Last month UN Climate Change announced an initiative whose goal is to scale up green hydrogen production significantly over the next six years. “The new ‘Green Hydrogen Catapult’ initiative will see green hydrogen industry leaders, including ACWA Power, CWP Renewables, Envision, Iberdrola, Ørsted, Snam, and Yara, target the deployment of 25 gigawatts through 2026 of renewables-based hydrogen production, with a view to halve the current cost of hydrogen to below US$2 per kilogram.”

The ammonia industry is transitioning towards sustainability at remarkable speed. In the last week alone, three major project announcements signal the availability of millions of tons of low-carbon ammonia this decade, and enthusiasm for rapid and complete transformation of the industry. Decarbonizing ammonia is no longer viewed as a challenge — now, this is quite clearly an opportunity.

Last week, Iberdrola and Fertiberia announced plans to start producing green ammonia for “fertilizantes libres de emisiones” (emission-free fertilizers). Iberdrola will invest EUR 150 million to build the 100 MW “Puertollano II” solar field, with a 20 MW electrolyzer bank to produce renewable hydrogen. Fertiberia will “update and modify” its existing Puertollano plant to consume this green hydrogen, reducing its natural gas use by “over 10%,” and producing green ammonia beginning in 2021.