Junior engineer - Power-to-X
Published on Feb 08, 2021
Path to hydrogen competitiveness - A cost perspective. Among other existing industrial feedstock applications the paper focuses on green ammonia cost perspectives. About 80 per cent of the ammonia produced is used in the manufacture of fertilisers, with end products such as urea or NPK (nitrogen, phosphorous, and potassium fertiliser). Ammonia production today sources hydrogen via steam methane reforming (SMR) or coal gasification, which emits about 2.5 tons of CO2 per ton of ammonia produced.
Hydrogen Council, McKinsey&Co, E4tech
Ammonia cost curve - Green ammonia production comes at a higher initial cost, with around 70 per cent higher plant capex due to the need for an additional air separation unit for the nitrogen supply. However, this only results in an additional cost of about USD 20 per ton of ammonia produced and an increase of 7 per cent of the market price of ammonia, at USD 300 per ton. On top of this, making renewable hydrogen from electrolysis the sole source of hydrogen for an ammonia plant requires some form of storage to secure production and bridge times without production.