Levelized cost analysis for renewable ammonia production in Chile

David Pozo, Enzo Sauma and Ricardo Bolado-Lavín

Energy, 2025, vol. 335, issue C

Abstract: Renewable ammonia production is a crucial step towards decarbonizing energy-intensive industries, but its economic viability is hindered by high capital costs and renewable resource availability. We develop a stochastic optimization framework to estimate the levelized cost of ammonia (LCOA) in any location in the world, accounting for the variability of wind and solar energy. The methodology is based on optimizing the portfolio of renewable sources and the capacity of the ammonia production facility while ensuring the three pillars of renewable fuel production: additionality, temporal matching, and geographic correlation. Formulated as a stochastic linear program, the model also accounts for inter-annual climate variability.

Keywords: Renewable ammonia; Green ammonia; LCOA; Renewable fuels (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:335:y:2025:i:c:s0360544225031962

DOI: 10.1016/j.energy.2025.137554

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