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The Green Ammonia Boom Is Coming
By Felicity
Bradstock
Jul
09, 2022
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Green
ammonia is emerging as a major contender to become a vital
emissions-free fuel for the world.
-
The
renewable fuel is also gaining major attention from energy giants
such as Exxon.
-
Greater
investment in the energy source could support innovations in
technologies to reduce production costs as well as support
countries in meeting their climate targets.
![](images/images_07_11_2022/pic1.jpg)
Green
ammonia is a little-known contender to become a major renewable fuel
over the coming decades. It has around nine times the energy of
lithium-ion batteries and its denser nature makes it easier to
transport than liquid hydrogen. As oil majors race to find innovative
renewable energy alternatives, green ammonia is gaining more
international attention for its potential as an emissions-free fuel.
Despite being little-talked-about
compared to hydrogen, ammonia is catching the eyes of energy firms
worldwide for its potential as a clean fuel. Ammonia is a compound of
hydrogen and nitrogen that can be used as fuel. Just like hydrogen,
there are several different types of ammonia, depending on the energy
used for its production.
Green
ammonia is becoming the most preferable form of the fuel as it is
carbon-free, whereas one tonne of conventional (brown) ammonia emits
around two tonnes of CO2. It is produced using wind, solar, or
hydropower to provide electricity which runs an electrolyzer that in
turn extracts hydrogen from water as nitrogen is separated from air
using an air separation unit. Why the production of green ammonia is
not new, recent innovations in technology have made it easier to
produce, making energy firms more prone to invest in the energy
source.
One of
the industries considering the use of ammonia to decarbonize is the
maritime sector,
which could use the fuel to help meet its climate targets. It could
also be used as a means of storing renewable energy for delayed use,
as well as transported to be cracked for its hydrogen content.
Ammonia
is now being produced and shipped around the world as companies
recognize its potential. Last month, the Abu Dhabi National Oil
Company (ADNOC)
sold ammonia,
produced using natural gas, to the Japanese oil company Inpex. It was
deemed ‘clean ammonia’ as the CO2 emitted during its production was
sequestered using carbon capture and storage (CCS) technology, to be
injected into onshore oil fields in Abu Dhabi.
This is
the first time the renewable fuel has been transported between the
Middle East and Japan, thanks to the IHI Corporation and Mitsui O.S.K.
Lines (MOL) connection between the regions. INPEX is hoping to
establish three or more ammonia projects by the end of the decade to
produce around
100,000 tonnes of hydrogen/ammonia
annually to help meet its climate targets. It also hopes to establish
a resilient supply chain between Japan and Abu Dhabi, recognizing the
emirate as a core business area.
Other
regions are also seeing the potential for green ammonia as countries
explore a variety of renewable sources to decarbonize their transport
and other sectors. Experts believe that green ammonia could be key to
the success of the European Commission’s REPowerEU strategy, which
aims at 20 million tonnes of renewable hydrogen. At present, the
ammonia sector in the E.U. region uses around 10 billion cubic meters
of natural gas a year, predominantly as a feedstock for fertilizers.
This demonstrates the potential for new renewable energy projects to
power the production of ammonia.
Joel
Moser, CEO of First Ammonia,
believes
that a shift to green ammonia could help Europe meet about 30 percent
of its 35BCM reduction target by 2030. European Commission
Vice-President Frans Timmermans has already stated the potential for
green ammonia as a renewable hydrogen carrier, encouraging energy
firms to invest in the sector. As well as helping to decarbonize the
European energy sector, if the region can develop a strong green
ammonia industry it could quickly become an export hub for the
renewable fuel. At present, there are about 270 ammonia sea terminals
globally, with 30 in the E.U., offering the potential for shipping
green ammonia for the fertilizer industry and for other uses.
Related: IEA Warns World Is Vulnerable To Chinese Solar Dominance
In
Ireland, two groups – the Killybegs Fisherman’s organization and
Sinbad Marine Services – are recommending the construction of a
floating offshore wind farm to power green ammonia and hydrogen
production. They recently signed a memorandum of understanding (MoU)
with Swedish wind energy company Hexicon for a
2 GW development,
which would power renewable fuel operations, to be used in marine
vessels, with excess power going to the local grid. The engagement of
fishermen in the project is expected to help get the project off the
ground with little pushback from the local community.
Meanwhile, in Norway, ExxonMobil, Grieg Edge, North Ammonia, and
GreenH have signed an MoU to conduct studies for the potential
production and distribution of green hydrogen and ammonia as marine
fuels. Operations would be based at ExxonMobil’s Slagen terminal in
Norway and would use hydroelectricity produced at the terminal to
power the production of around 20,000 metric tonnes of green hydrogen
and 100,000 metric tonnes of green ammonia annually. Matt Duke, CEO of
Grieg Maritime Group
explained,
“Slagen is an exceptionally suitable location as a central hub for
hydrogen and ammonia to the maritime sector”. He added, “With the
complementary expertise amongst the MOU partners, we have now taken an
important next step in our efforts to achieve emissions reductions in
the maritime sector.”
With
clear demand from the maritime sector and the potential for use in
other industries, mainly as hydrogen, green ammonia is gaining
increasing attention from governments and companies looking to shift
away from fossil fuels to renewable alternatives. Greater investment
in the energy source could support innovations in technologies to
reduce production costs as well as support countries in meeting their
climate targets.
By
Felicity Bradstock for Oilprice.com
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