What is Ammonia?

Ammonia (NH3):

  • Is an essential chemical for human life (fertilizers for food, pharmaceuticals for health, refrigerants, and building blocks for various chemicals for industry);
  • Is one of the biggest contributors of CO2 footprint;
  • brings big challenges and opportunities for the global decarbonation roadmap realization

Key Milestones?

  • In 1774: first obtained in pure form by the English Chemist Joseph Priestley
  • In 1913: world’s first ammonia synthesis plant started operation (BASF Oppau Plant, Haber-Bosch process)
  • In 2019: Global Production Capacity of Ammonia ~ 240 million tons/year, plant number around 550
    • Is the 2nd largest chemical produced in the world (following H2SO4);
    • China holds ~30% global ammonia production, followed by Russia, and the Middle-East;
    • ~ 10% of the total production of ammonia is exported around the world.
  • In 2020:
    • Ammonia accounts for ~20% of the total energy consumption of the wider chemical sector and around 35% of its CO2 emissions.
  • In 2021:
    • Green Ammonia started to be promoted in Energy Roadmaps and Policies of major countries and regions.
  • In 2030:
    • The global capacity of production of ammonia may achieve around 300 million tons
    • With announced Green Ammonia projects’ total capacity:
      • 15 million tons in the world (based on public announcement until end of 2022)
      • 8 million tons in China (based on public announcement until Feb. 2023)

Why Green Ammonia?

Ammonia is divided into gray, blue, and green ammonia depending on the source of hydrogen used in its production. Green Ammonia is mainly made of the hydrogens produced out of water electrolysis by Renewable Energy.

Green Ammonia could be used as a climate-neutral fuel, to produce carbon-free fertilizer so as to decarbonize the food value chain, and could be a green feedstock for various industrial uses.

Who are the key players in the green ammonia market?

After 2025, Green Ammonia is expected to dominate the new capacity of ammonia.

More than 60 companies have announced the establishment of renewable ammonia plants, mainly distributed in Germany, Norway, Australia, China and Chile… and most of the units will be put into production around 2026.

What and where are the recently announced Projects?

Some recent News include:

“Yara International Chemicals is developing a large green ammonia project in Norway. The company has equipped a 24MW electrolysis plant at its existing Herøya fertilizer plant and intends to partially replace hydrocarbon-based hydrogen production at the Yara plant with proton exchange membrane (PEM) electrolysis technology. This will generate about 10,000 kg of clean hydrogen per day, and eventually produce 20,500 tons of green ammonia per year, which can be converted into 60,000 to 80,000 tons of green fertilizer and can be used as fuel for ships. The project, which has received US$31 million in funding, will reduce carbon dioxide emissions by approximately 41,000 tons per year. The first batch of green ammonia products will be delivered to the market in 2023.”

“Jilin Da’an Integrated Demonstration Project of Green Hydrogen Production and Ammonia Synthesis by wind, with a total investment of 6.332 billion yuan, is located in Da’an City, Jilin Province. The project is mainly divided into four parts: photovoltaic, wind power, hydrogen production and synthesis of ammonia. It is the first green ammonia in China and the largest in the world.”

“The Asian Renewable Energy Hub (AREH) in Australia plans to produce 10 million tons of green ammonia and about 1.8 million tons of green hydrogen per year. The project has 26 million kW of upstream wind and solar facilities and is comprised of BP, Intercontinental Energy, Vestas, Asia Energy and CWP Energy, with an estimated total capital cost of US$36 billion.”

“Air Products, in conjunction with ACWA Power and NEOM, announced the signing of an agreement for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy. The project, which will be equally owned by the three partners, will be sited in NEOM, a new model for sustainable living located in the north west corner of the Kingdom of Saudi Arabia, and will produce green ammonia for export to global markets.”

How can Daydream-Dynovel help you develop in the Green Ammonia markets?

Daydream – Dynovel have developed a strong expertise in Market Analysis and Strategy for the Green Ammonia market. We can help you develop faster, better and more sustainably by understanding market trends, key players and new players, customers’ new performance requirements & challenges in order to elaborate with you a tailor-made roadmap:

  • Business Plan & Investment Feasibility Report
  • Identification of Opportunities & risks crossing regions
  • Scout, qualify, and build connections with potential partners
  • Assess and forecast the market potential
  • Evaluate the potential for cutting-edge technology
  • Develop Materials & Technologies along the Green Ammonia value chain
  • Improve pricing mechanism
  • Assist you on your Green Strategy….

Next Steps: Talk with Daydream

Sources of information:

  1. Hydrogen Energy Global Road Map 2020-2050 / Value Chain, Technology, Road Map, Prevision – D-News February 2021 (https://www.daydream.eu/hydrogen-energy-global-road-map-2020-2050/)
  2. https://iea.blob.core.windows.net/assets/6ee41bb9-8e81-4b64-8701-2acc064ff6e4/AmmoniaTechnologyRoadmap.pdf
  3. https://assets.kpmg.com/content/dam/kpmg/cn/pdf/zh/2022/12/overview-and-prospect-of-green-ammonia-industry.pdf
  4. Research progress of green ammonia energy and ammonia fuel cell (CHEN Yongzhen, HAN Ying, SONG Wenji, FENG Ziping, (Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, Guangzhou 510640, Guangdong, China))
  5. http://news.sohu.com/a/664066714_479771
  6. https://www.bp.com/en_au/australia/home/who-we-are/reimagining-energy/decarbonizing-australias-energy-system/renewable-energy-hub-in-australia.html
  7. https://www.acwapower.com/news/acwa-power-to-develop-uzbekistans-first-green-hydrogen-and-green-ammonia-projects/
  8. https://www.yara.com/corporate-releases/yara-and-linde-engineering-agree-to-build-a-24-mw-green-hydrogen-demonstration-plant-in-norway.-both-companies-aim-to-achieve-a-significant-carbon-dioxide-reduction-in-the-production-of-fertilizers-in-norway/
  9. U.S. Energy Information Administration (EIA)