According to the new market research report published by MarketsandMarkets™, the Green Ammonia Market size will grow to USD 852 million by 2030 from USD 11 million in 2020, at a CAGR of 54.9% during 2020 to 2030. Naphtha/natural gas (steam reforming of light hydrocarbons) Coal, petroleum coke, petroleum resids (partial oxidation of carbon source) 1 price 5 fertilizers-food ammonia 1 5 114 Ammonia (a.k.a. However, the reaction needs extreme conditions – pressures of around 20MPa and temperatures of at least 400°C – which requires specialised equipment and a lot of energy. (co-injection with N2) • This co-product value can reduce production cost for eventual fuel use. The catalyst The large quantities of ammonia produced globally in this way (more than 235 million tonnes, which ie. >> ammonia could be produced for about $350/t. The cost of this CO2-free ammonia after logistics costs were taken into account was estimated by the IEEJ at $320 per tonne-NH3, or about $340 per tonne-NH3 according to the IEA’s estimated production cost of CO2-free NH3 including the cost of delivery to Japan as estimated by IEEJ. [5] “A Feasibility Study on the Supply Chain of CO2-Free Ammonia with CCS and EOR,” IEEJ, February 2019, [6] Figure 22, IEA, The Future of Hydrogen, June 2019. A full list of members can be found in the Member Directory. Two conclusions can be derived from these analyses. That means that the running costs of your plant are very high. The cost of transporting CO2-free ammonia to Japan and then to its point of use within the country needs to be added to the cost of production. The validity of this cost estimate is supported by another IEA analysis. Copyright © 2019 Ammonia Energy Association. Companies involved in Ammonia production, a key sourcing item for solar cell manufacturers. The breakdown of these costs for each process in each decade from 2020 to 2050 is shown in Figure 8. NH3) is one of the most produced synthetic chemicals, manufactured in more than 80 countries. Because the Haber-Bosch technology has been so stable across the decades, and because regional feedstocks are so ubiquitous (natural gas in the US, coal in China), the production cost structure of ammonia is very well understood. CO2-Free Ammonia Production Cost as Estimated by the IEA. Labour and other costs were the second most important component of the production costs in the industries of these two products. The economic comparison shows a breakeven point for a current medium-scale ammonia plant to be five years with a production cost of $600/ton, where the patented process plant can break even in less than two years and has a relative production cost of $232/ton. @��h���14(�ݹ��K��1��������I�4?���< qOK���8�!��I*� z,��E�S�2�1�^����+�U�s����|�WdDz��H�8��6���K.�?onWgǬ��֙-3��7Mkl�����������R^VZR\TX���H��SB�~��d4�4j�R!���QFm��'���"���L�BD︈�� D�ML���&�L@�eg�LД�є�(G���P��tM(0��v��&��;#�f�1��@0Wj�+j}�'P�W�u��ڞȯ_��U/Ugf�~��X_jh}?N��"�RkK�a�֑������%}3[;kk��ż���} • Renewable ammonia production will directly benefit from electrolysis technology and cost improvements in development. The rapid implementation of this new technology has resulted in many process problems during construction, startup, and operation. NH3) is one of the most produced synthetic chemicals, manufactured in more than 80 countries. At a cost of $665 million, the natural gas plant would cost slightly more than $1,600 per ton of annual capacity. From a social acceptance perspective, most people would immediately associate ammonia with its awful smell, which links to a perception of high toxicity. Ammonia production has become one of the most important industries in the world. If an enhanced oil recovery field exists near the ammonia plant, the high concentration of CO2 emitted from the production process can be sold almost intact for EOR. Ammonia-coal co-firing has also already been demonstrated, first by Chugoku Electric in July 2017 at its 156-MW Mizushima Thermal Power Station … %���� Operating costs are projected to keep falling as the price of renewable power continues to drop. /Filter /FlateDecode Such estimations have been made by independent public organizations, both domestic and foreign, as discussed below. (Note that we are discussing the cost of CO2-free ammonia before it is reconverted to hydrogen because CO2-free ammonia can be used as a fuel as it is, without reconversion to hydrogen). A stable binary hydride, as well as the simplest pnictogen hydride, ammonia is a colourless gas with a characteristic pungent smell. Natural gas and OTEC also provided low costs of less than 689 $/t, or a gasoline equivalent of 4.51 $/gal. %PDF-1.5 To estimate total production cost, the fixed cost of the plant (plant capital, labor, etc. Natural gas use for energy purposes accounts for 66% of overall energy expenses (excluding feedstock use). (Here, the cost of CO2-free ammonia is indicated as the calorific-equivalent hydrogen cost ($ per kg-H2)). Table 2. By Robert F. Service Jul. [1] Decided by Relevant Ministers Council on Renewable Energies and Hydrogen Energy of the Japanese government in December 2017. The ammonia produced with this cost structure is of course the conventional variety, with the full greenhouse gas footprint that originates in the carbon embodied in the natural gas feedstock. To estimate total production cost, the fixed cost of the plant (plant capital, labor, etc. Other uses for ammonia include as a refrigerant, a cleaning and bleaching agent, and a household cleaner. If ammonia is to be introduced into the energy system as a CO2-free fuel, its cost must be at least competitive with that of other CO2-free fuels such as CO2-free hydrogen. • Carbon free ammonia needs to be a significant contributor to the H2@Scale initiative. [2] Energy Efficiency and CO2 Emissions in Ammonia Production 2008-09 Summary Report, International Fertilizer Industry Association, September 2009. stream If the cost of natural gas is $3.00 per MMBtu, for example, the variable production cost of ammonia … A stable binary hydride, as well as the simplest pnictogen hydride, ammonia is a colourless gas with a characteristic pungent smell. What is important is to assess the social implementation potential of CO2-free ammonia from this cost level of roughly $350 per tonne-NH3 derived from these analyses. [4] The ammonia production cost of this method can be estimated by the chemical reaction formula of ammonia synthesis (1/2N2 + 3/2H2 → NH3) and energy efficiency of hydrogen production by electrolysis. 12, 2018 , 2:00 PM. Spe- Ammonia Production Cost Analysis 2020 Ammonia is an example of a well-known compound of nitrogen and hydrogen. Specifically, the variable cost of ammonia ($ per tonne-NH 3) can be approximated by simply multiplying the cost of natural gas ($ per MMBtu) by 30. Decades of price information is already available (at a cost) for a range of regional ammonia trading hubs, most importantly Tampa in Florida, and Yuzhnyy in Ukraine. Since typical large scale shipping of ammonia is in the region of $50/t, ammonia delivered from a US facility would be in the region of $400/t. Ammonia from sustainable and renewable feedstocks Modern ammonia production based on natural gas (NG) or coal has been opti-mised over more than 80 years. declining energy cost. It was found in the environmental comparison that the patented process, if scaled globally, would address and eliminate 7% of the total CO The International Energy Agency estimated production costs for CO2-free ammonia in its 2019 report The Future of Hydrogen, as shown in the figure below. Furthermore, capital costs, operating parameters and other financial assumptions of a power-to-ammonia plant were used in an economic model to calculate the break-even point at which the total cost and the total revenue are equal. For the Middle East to Japan, logistics costs are $40 per tonne-NH3; for North America to Japan, $80 per tonne-NH3. Natural gas is the key cost driver for the ammonia industry as, depending on its price, it makes up approximately 70-85% of the ammonia production costs (see Figure 5). Ammonia Manufacturers. This chapter describes briefly about hydrogen and current hydrogen production and storage technologies, the cost of hydrogen production from different processes, ammonia and current status of ammonia production followed by a detailed discussion of different ammonia decomposition catalysts. Contents 1. Each process technology has a different cost composition. A study by the International Fertilizer Industry Association in 2008 on energy efficiency of 93 ammonia plants in 33 countries[2] found that the top decile of energy efficient plants using natural gas as a feedstock achieves an efficiency of 32 GJ per tonne-NH3. The ammonia production rate is a record for electrochemical production, however the energy efficiency is still only 1.4–2.8%, so it cannot yet compete with the energy efficiency of the Haber-Bosch process, which is around 50–80%. The syngas is purified through several steps into nitrogen and hydrogen which are synthesized to ammonia. Thus, the pre-shipment cost of ammonia produced in overseas regions where the cost of natural gas is around $3.00 per MMBtu can be estimated at around $200 per tonne-NH3. Despite these economic concerns, the process engineering team has concluded that a carbon-free ammonia production … Although fundamental ammonia-manufacturing technologies have not radically changed in the last ten to fifteen years, numerous technological changes and improvements have taken place in processing technologies, aiming for increased energy efficiencies and, of late, for higher capital productivity and improved competitive profit margins from lower operating costs. In 1983, on the occasion of the 75th anniversa… Summary 2 - Objective of Ammonia Introduction as Fuel - Our Definition of Low Carbon Ammonia in This Study - Cost Estimation of Ammonia Production and Supply to Japan - Cost Estimation of Power Generation by NH3-Coal Co-Firing and NH 3 Firing - Gas Price as Feedstock and Utility in Ammonia Production These are the facts, which make renewable energy interesting, not only for power, but also for other appli - cations such as fertilizer production. Premise of Study 3. The SWAP process in action. The United States is one of the world’s leading producers and consumers of ammonia. At a raw natural gas price of $10.00 per MMBtu (blue dotted line), the cost of producing CO2-free ammonia is about $530 per tonne-NH3. Details: 800 kta United States-based plant | Q4 2019 | 108 pages From $1,199. It was based on the following cases and assumptions: The analysis shows that if CO2-free ammonia can be sold at prices between $276 per tonne-NH3 (for Saudi Arabia) or $300 per tonne-NH3 (for the other locations), the business will be profitable on the production side. There are numerous large-scale ammonia production plants worldwide, producing a total of 144 million tonnes of nitrogen (equivalent to 175 million tonnes of ammonia) in 2016. %/E�բ&(�\� -A+�&�s؀�؍}8��sq7^���-x+ލ��W�k�-�(>���?��B߸��&x&:r�ǥ�jtz�-B���D�>�z�qvM�;���ek��?��Ȃ���#g��5�bn��E�ŌG>8+��F�Ãr3R���W!�c<4�9WI�#�$�]� ^���G��;K���y�.ݨ�{��ߕ��Uh5Z�֊��pn9|/��BH�R>�j��u�W6�-h+�o�B��1�m�c;��h'څvK��Ę]pf��؃.���]$2&i�>t1�Z�2t9��kCW����Jt��w�5_ɯ�������nD7�����_܊n;+��b�-�t'�r�&��Sd���'�(z=�u��F5���L�!�����ƕ��oۨ��@�I��K5����b��G�r����v ��>K�B(� �$�,v�V�.���q��Uvv�W���0�o�U��Nٝ"�hڻ���ѽ�����Is�}�~��C�!8��xF�#�a���P? The energy efficiency of ammonia production using a natural gas feedstock in particular has almost reached the theoretical limit. By Svend Ravn. Moreover, ammonia cost could even almost reach the level of 20 yen/Nm3-H2, which is the target for 2050. In the discussion below I consider the cost aspect of CO2-free ammonia. A completely independent cost analysis for CO2-free ammonia was conducted under the auspices of the SIP “Energy Carriers” initiative by the Institute of Energy Economics, Japan (IEEJ). That means that the running costs of your plant are very high. 200 atmospheres is a compromise pressure chosen on economic grounds. The cost of hydrogen, which is the main feedstock for ammonia production, was first determined for both fossil-fuel and Most of the fuel for ammonia production is consumed in the primary reformer (about 78%) and the remaining in auxiliary boilers. The compromise. Construction of a new ammonia production plant with an annual capacity of 1.1 million tonnes in either Saudi Arabia, another Middle Eastern country, or North America; Natural gas feedstock priced at $3.00 per MMBtu; Realization of a 10% equity internal rate of return (EIRR) as supplier profit[5]. The production cost consists of three main components, namely capital expenditure (Capex), operating and maintenance (O&M), and feedstock. NH3) is one of the most produced synthetic chemicals, manufactured in more than 80 countries. On top of the cost of a conventional H-B plant, the capital cost also includes the water electrolysis equipment, which is currently of the order of USD 1M per MW of capacity. The value of the red-framed bars in the left-hand panel, which correspond to the cost of CO2-free ammonia from the Middle East to Japan, is almost in line with the results estimated by the IEEJ above. Estimation of the Production Cost of CO2-Free Ammonia. If the pressure used is too high, the cost of generating it exceeds the price you can get for the extra ammonia produced. Figure 3 Green ammonia and low carbon fertilizer production in 2050. By Robert F. Service Jul. The Haber process, also called the Haber–Bosch process, is an artificial nitrogen fixation process and is the main industrial procedure for the production of ammonia today. The renewable energy production profile determines the size and the rate of the ammonia synthesis plant. This reduction in membrane costs combined with the relatively small contribution of the MA-ATR reactor to the total plant cost meant that the ammonia production cost increased by only 0.7% in the case with a membrane volume fraction of 0.25. So in theory, the energy cost of direct electrolytic production of ammonia from nitrogen and water is less than the cost of electrolytic production of hydrogen followed by production of ammonia from nitrogen and hydrogen. production. Ammonia is being used as a refrigerant owing to several benefits such as high efficiency, environmentally-friendly, smaller pipe size, better heat transfer properties, and cost. The IEEJ analysis took this into account in its estimation of the cost of CO2-free ammonia produced in the US. ), which varies with location and age of the plant’s facilities (and often other factors), must be added to the variable cost. High pressures cost a lot to produce and maintain. Editor’s note: Bunro Shiozawa is a Senior Associate at Sumitomo Chemical Company. If the cost of natural gas is $3.00 per MMBtu, for example, the variable production cost of ammonia from this feedstock would be about $90 per tonne-NH3. It is also used in metal treating operations. 13 As discussed in more detail in the Intermittency section below, the impact of this capital cost indicates that it could add significantly to the capital intensity of ammonia production. 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