As society attempts to find ways
to reduce its environmental footprint, decarbonizing a broad range
of sectors and industrial processes will be crucial in the years
ahead.
Time is of the essence when it comes to finding new solutions and
technologies to do this, if
the Intergovernmental Panel on Climate Change’s latest findings are
anything to go by.
Published last week, its report
warned that limiting global warming to close to 1.5 degrees Celsius
or even 2 degrees Celsius above pre-industrial levels would “be
beyond reach” in the next two decades without immediate, rapid and
large-scale reductions in greenhouse gas emissions.
Against this sobering backdrop a number of firms are attempting to
reduce the environmental effects of ammonia production, which is
responsible approximately 1.8% of the world’s carbon dioxide
emissions, according to a policy briefing from The Royal Society.
On Monday, for instance, three Norwegian firms – energy powerhouse
Statkraft, Aker Clean Hydrogen and fertilizer specialist Yara –
launched a company focused on the production of so-called “green”
ammonia.
The new company, called HEGRA, is jointly owned by the three
businesses. According to Statkraft, which is itself owned by the
Norwegian state, HEGRA will focus on electrifying and decarbonizing
an ammonia plant located in Herøya, Norway.
The broad idea behind the initiative is that it will use renewable
energy to generate ammonia at scale. The ammonia would then be used
to produce carbon-free fertilizer. Statkraft also described green
ammonia as “a promising zero-emission fuel for the maritime sector.”
Speaking to CNBC’s “Squawk Box
Europe” on Monday morning, Yara CEO Svein Tore Holsether stressed
the importance of developing big-picture solutions.
“The technology is there, but it’s also about turning it into a
product,” he said. “And the nice thing about ammonia production and
fertilizer production is that you have an existing infrastructure
already.”
“By converting part of that to renewable energy using hydropower, as
we’re talking about here in Norway, we can produce a renewable
fertilizer product and supply that to the farmers at scale, rather
quickly.”
In terms of a timeline, Holsether indicated it would take five to
seven years to get the project up and running.
The creation of HEGRA is just one
example of how companies are looking into ways to reduce the
emissions associated with ammonia production.
In Australia, Yara is also working with ENGIE on
the development of a plant that will produce renewable hydrogen and
ammonia. The project is backed by a grant of 42.5 million Australian
dollars ($31.15 million) from the Australian government.
Last week, oil and gas giant BP announced
that “the production of green hydrogen and green ammonia using
renewable energy” was now technically feasible at scale in
Australia.
The energy major’s conclusion is based on the findings of a
feasibility study announced in May 2020 and supported by the
Australian Renewable Energy Agency, solar developer Lightsource bp
and professional services firm GHD Advisory.
In a statement, BP described the vast state of Western Australia as
being “an ideal place” for the development of “large scale renewable
energy assets that can in turn produce green hydrogen and/or green
ammonia for domestic and export markets.”
— CNBC’s Sam Meredith
contributed to this report
