Chemists Pursue ‘Clean’ Ammonia as Alternative Shipping Fuel
TL/DR –
Ammonia production, which accounts for 2% of global greenhouse gas emissions, could become cleaner due to advances in green technology and government incentives. Danish company Topsoe plans to construct a factory in Virginia to produce electrolyzers for making clean hydrogen, crucial for “green ammonia” production, with the help of President Biden’s climate laws offering billions of dollars in advanced energy programs. First Ammonia, a New York-based startup, has also changed course to build its first green ammonia plant in Texas due to the Inflation Reduction Act’s clean energy tax credits and intends to sell its ammonia to German power company Uniper.
Green Ammonia and Climate Law
The common household ingredient, ammonia, sourced from one of the world’s dirtiest industries, could be transformed by President Joe Biden’s climate law. Typically produced through a carbon-intensive process using fossil fuels, ammonia doesn’t release any carbon emissions at its point of use, making it a potential clean energy source.
Danish company, Topsoe, plans to construct a factory in Virginia to manufacture electrolyzers that produce clean hydrogen using solar or wind energy. This venture is stimulated by the Inflation Reduction Act which offers significant funding through advanced energy programs. A new plant in Texas plans to use this clean hydrogen to create “green ammonia”, which will be sold to a German power company.
Ammonia production is responsible for around 2 percent of global greenhouse gas emissions. Greening ammonia production, therefore, presents a substantial climate prize. Furthermore, ammonia could also be used to dramatically reduce emissions from cargo ships and replace natural gas and coal in electricity generation.
The Inflation Reduction Act and its $370 billion in climate funding has positioned the U.S. at the forefront of ammonia industry reform. New York-based startup, First Ammonia, has rerouted their plans for a European green ammonia plant to Texas due to Russia’s invasion of Ukraine and the enactment of the Inflation Reduction Act in 2022.
First Ammonia chose Texas for its plentiful renewable energy and industrial infrastructure. The company plans to begin construction at the Port of Victoria later this year on a plant that can produce 300,000 tons of ammonia annually. The company announced a partnership last year to sell ammonia to Uniper, a German power company. The operation is largely enabled by the Inflation Reduction Act’s clean energy tax credits.
Potential Uses for Ammonia
The ammonia market sees potential growth in maritime shipping and electricity generation, where ammonia could fuel cargo ships and supplement wind and solar in the power sector. Globally, approximately 180 million tons of ammonia, valued over $100 billion, are sold annually, with about 70 percent used for fertilizers, according to the International Energy Agency.
Ammonia, comprised of nitrogen and hydrogen, is traditionally carbon intensive, with the production of hydrogen being particularly polluting. Green hydrogen, produced by splitting a water molecule using electricity powered by wind or solar technologies, is emerging as a key solution to cleaning up ammonia production.
This is where Topsoe comes in. The Danish industrial company is starting to transition to green technologies, aided by a $136 million Inflation Reduction Act tax credit from the Energy Department. Topsoe plans to construct a $400 million electrolyzer factory in Chesterfield, Virginia, and First Ammonia is the company’s first customer.
Ammonia in the Shipping Industry
Green ammonia has numerous advantages, including an existing global network of ports, ships, and pipelines for shipment. Japan has committed to using green ammonia to decarbonize its power sector by blending it with coal, aiming for 100 percent ammonia electricity generation by midcentury. The marine shipping industry, which accounts for 2 percent of global emissions, could benefit greatly from ammonia as a fuel source.
However, there are challenges. Ammonia’s high ignition temperature and corrosive nature can pose problems. Nonetheless, with supportive legislation like the Inflation Reduction Act, companies are increasingly exploring the potential of green ammonia as a substantial contributor to emissions reduction and clean energy production.
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