Ammonia Production from Clean Hydrogen and the Implications for Global Natural Gas Demand

Deger Saygin (), Herib Blanco, Francisco Boshell, Joseph Cordonnier, Kevin Rouwenhorst, Priyank Lathwal and Dolf Gielen
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Deger Saygin: Faculty of Engineering and Natural Sciences, Sabanci University, Orta Mahalle, Tuzla, 34956 Istanbul, Turkey
Herib Blanco: International Renewable Energy Agency (IRENA), Innovation and Technology Center, Willy-Brandt-Allee 20, 53113 Bonn, Germany
Francisco Boshell: International Renewable Energy Agency (IRENA), Innovation and Technology Center, Willy-Brandt-Allee 20, 53113 Bonn, Germany
Joseph Cordonnier: Organisation for Economic Co-Operation and Development (OECD), Environment Directorate, 46 Quai Alphonse Le Gallo, 92100 Boulogne-Billancourt, France
Kevin Rouwenhorst: Ammonia Energy Association, 77 Sands Street, Brooklyn, NY 11201, USA
Priyank Lathwal: World Bank Group, 1818 H Street NW, Washington, DC 20433, USA
Dolf Gielen: International Renewable Energy Agency (IRENA), Innovation and Technology Center, Willy-Brandt-Allee 20, 53113 Bonn, Germany

Sustainability, 2023, vol. 15, issue 2, 1-28

Abstract: Non-energy use of natural gas is gaining importance. Gas used for 183 million tons annual ammonia production represents 4% of total global gas supply. 1.5-degree pathways estimate an ammonia demand growth of 3–4-fold until 2050 as new markets in hydrogen transport, shipping and power generation emerge. Ammonia production from hydrogen produced via water electrolysis with renewable power (green ammonia) and from natural gas with CO 2 storage (blue ammonia) is gaining attention due to the potential role of ammonia in decarbonizing energy value chains and aiding nations in achieving their net-zero targets. This study assesses the technical and economic viability of different routes of ammonia production with an emphasis on a systems level perspective and related process integration. Additional cost reductions may be driven by optimum sizing of renewable power capacity, reducing losses in the value chain, technology learning and scale-up, reducing risk and a lower cost of capital. Developing certification and standards will be necessary to ascertain the extent of greenhouse gas emissions throughout the supply chain as well as improving the enabling conditions, including innovative finance and de-risking for facilitating international trade, market creation and large-scale project development.

Keywords: green ammonia; blue ammonia; natural gas; energy security; energy transition (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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