What is green ammonia

Ammonia (NH3) is a nitrogen and hydrogen-based chemical compound widely used in the production of  fertilizers, industrial chemicals and hydrogen carrier.

Green ammonia, also known as renewable ammonia, is a form of ammonia that is produced using renewable energy sources and which is proposed as a sustainable, emission-free alternative with a multitude of applications in industry and other sectors.

Ammonia is currently produced from the energy-intensive industrial Haber-Bosch process using hydrogen and nitrogen sources and in its production process, emits 2 tons of CO₂ for every ton of ammonia. For this reason, conventional ammonia is referred to as grey ammonia. Green ammonia, on the other hand, does not emit CO₂ in its production process and is therefore expected to grow exponentially in production to replace grey ammonia and can be used for additional uses.

 

How green ammonia is produced?

The basic elements needed to produce ammonia are nitrogen and hydrogen. The conventional ammonia production process involves the conversion of fossil fuel (e.g., natural gas) to produce gaseous hydrogen by the steam reforming process. The other element nitrogen is obtained from the air. Ammonia is then produced by ammonia synthesis in the presence of a catalyst at high temperature and pressure. Ammonia thus produced is called grey ammonia and the synthesis process is known as the Haber Bosch process.

To produce green ammonia, green hydrogen must first be obtained through a process of water electrolysis. That is, water is decomposed into hydrogen and oxygen, using electrical energy generated from renewable sources. The hydrogen is then combined with atmospheric nitrogen through a process known as Haber-Bosch synthesis, which allows hydrogen and nitrogen to react at high pressure and temperature in the presence of a catalyst to form ammonia. The end result is the production of green ammonia using green hydrogen and atmospheric nitrogen.

In 2021, less than 0.02 MT of green ammonia was produced. The energy needed in the whole process of production is powered by renewable energy such as solar, wind, geothermal, etc. resulting in carbon-free green ammonia production process.

Alternate methods of green ammonia production

Apart from the electrolysis process of green ammonia production, research is being conducted on green ammonia production technologies such as electrochemical, nitrogenase process, and chemical looping processes.

Electrochemical process

• Green ammonia is directly produced from water and nitrogen-based components (N₂, NO₃^–, NO_x) using electricity
• No need for out-source hydrogen supplyIdeal for distributed (small-scale) generation
• This production process is Technology Readiness Level 1 – 2

Nitrogenase process

•  Green ammonia is produced naturally by bacteria that contain an enzyme catalyst – Nitrogenase.
• It operates at room temperature and pressure to synthesize ammonia from water and nitrogen.
• Needs more research and development for large-scale industrial production
• This production process is Technology Readiness Level  1

Chemical looping processes

• Green ammonia is produced as a byproduct of a series of chemical/electrochemical reactions.
• A few cycles eliminate the need for a separate hydrogen production process by reacting with water directly.
• This production process is Technology Readiness Level  1 – 4.

Recent developments in green ammonia technology include:

• Solid oxide electrolysis system developed by Haldor Topsoe (Denmark) uses renewable energy to produce ammonia synthesis feed-gas without an air separation unit, significantly reducing capital expenditure
• Atmonia – an Iceland-based start-up is developing a catalyst for sustainable ammonia production as this catalyst will use new materials considering the net zero-carbon goals
• Starfire Energy (United States) has developed a modular system to produce carbon-free ammonia, and this system requires lower pressure than the traditional Haber-Bosch system
• Jupiter Ionics (Australia) has invented an electrolytic cell that produces green ammonia using only water, air and renewable energy with no CO₂ emissions.

What are the main uses of green ammonia?

This type of chemical compound is widely used in the production of agricultural fertilizers as ammonia is an essential source of nitrogen for plant growth. It is also used as a raw material in the production of a variety of chemical products, such as nitric acid, synthetic fibers, explosives, dyes and pharmaceuticals. Besides that, green ammonia is a suitable alternative fuel source for transport industries paving the way for a more sustainable future.

In addition to traditional uses, the emergence of green ammonia will give rise to new demand uses with high growth potential. On the one hand, ammonia is considered an energy vector as it enables efficient hydrogen transport and storage. It involves an additional process called “cracking” which consists of re-splitting the NH molecule3 to recover the hydrogen contained in it. Another possible new use for green ammonia is as a fuel for ships and it could play a relevant role in the decarbonisation of the maritime sector. Finally, green ammonia has the potential to be used as a fuel in boilers, turbines or engines to generate heat and electricity, reducing greenhouse gas emissions.

Energy sources and uses are all based on ammonia. (Source: Douglas et al., Joule, 2020)

What are the main benefits of green ammonia?

Among the main advantages of this chemical compound are the following:

• Greenhouse gas emission reductions: Green ammonia, being produced using renewable energy sources, does not emit carbon dioxide (CO₂) during its production and therefore its use will be key to reducing CO­₂ emissions in the so-called “hard to abate” sectors that currently use conventional ammonia produced from carbon-intensive natural gas. Thus, by replacing it with green ammonia, dependence on fossil fuels is reduced and greenhouse gas emissions are reduced, contributing to climate change mitigation.
• Increased energy supply security: green ammonia reduces dependence on fossil fuels in general.. By using renewable energy sources, green ammonia is produced from local resources and reduces current exposure to fossil fuel price volatility (required in conventional ammonia production).
• Energy vector or hydrogen carrier: while hydrogen liquefies at a temperature of -253°C, ammonia only requires cooling to -33°C. Liquefaction is necessary to transport and store these compounds. The lower requirements for ammonia make this process much more competitive and energy-efficient than H2 transport. Thus, once the necessary infrastructure for import, storage and cracking of ammonia is developed, it will be possible to produce green hydrogen in locations with optimal conditions (competitive renewable energy) and then export it to other consuming regions.
• Contribution to renewable energy deployment: Meeting future demand for green ammonia will require large amounts of new renewable electricity to meet the requirements set by the EU Delegated Acts for the definition of hydrogen and renewable derivatives. According to the RePowerEU plan, 20 million tons of renewable hydrogen will be needed in 2030 to decarbonize local industry. Of this, 10 million tons will be produced domestically and the rest will be imported in the form of ammonia.

 

Green Ammonia Market Size & Trends [1]

• The current market volume is around 185 million tons globally. Approximately 90 % of this is produced and consumed captively by industries that need ammonia as a raw material in their production processes. The remaining 10 % is traded internationally.
• The global green ammonia market size was valued at USD 151.57 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 116.5% from 2023 to 2030. The increasing prevalence of green ammonia due to growing awareness of producing clean energy and reducing carbon footprint is expected to boost the demand in coming years.  The growing use of the products as marine fuel in the shipping industry, due to its zero carbon emissions and lack of sulfur traces, is expected to enhance air quality and drive market growth in the near future.

(Sources: https://www.grandviewresearch.com)

 

• Due to pressure on the shipping sector to reduce carbon emission, green ammonia is the best alternative candidate, as it has less volumetric energy density, which makes storage feasible compared to other fuels. Additionally, the favorable rules and regulations related to low-carbon emissions and the growing fuel application from marine industry are also propelling green ammonia market demand.
• Renewable ammonia is expected to become a commodity chemical by 2040 as the green ammonia market size is poised to increase exponentially over the forecasted period. This is due to increasing initiatives by several governments towards low to zero carbon emission. In the forecast period, the product is likely to become the prime commodity for transporting renewable energy across regions. Further, the growing demand for green ammonia in various end-use industries including fertilizer, power generation, pharmaceutical products, refrigeration transportation, and others is expected to propel industry growth.
• The value chain depicts the vertical integration of key players, whose business operations range from the raw material suppliers to the distribution of finished products. BASF SE, Yara International, ThyssenKrupp AG, and ITM Power PLC are the key players integrated across the value chain. Among these, Haldor Topsoe, Green Fuel, Yara International ASA, Statkraft AS, and Aker Clean Hydrogen are the key players undertaking R&D activities for the development of required green ammonia in respective markets.

 

Challenges related to green ammonia [2]

• Cost: The cost of production of green ammonia is much higher than traditional ammonia production cost. According to IRENA, current production costs for new green ammonia plants are in the range of $ 720 – 1,400 per ton which is about six times higher than the traditional ammonia (natural gas-based ammonia and coal-based ammonia), which is in the range of USD 110-340 per ton.
• Low conversion rate: When ammonia is used for power generation, its conversion rate is very low which is around 17%, meaning 83% of the input energy is lost.
• Access to technology: The current green ammonia technology needs to be scaled with the innovation in new electrolyzer technologies like solid oxide electrolyzer, polymer electrolyte membrane (PEM), etc. with improved operational efficiency to make green ammonia more cost competitive. To achieve the goal of green ammonia production by 2050, global electrolyze production capacity must be increased by 20 times, from 2.1 GW per year to 42 GW per year.
• Environmental challenge: Green ammonia can replace fossil fuels at scale in hard-to-abate areas of the electricity and transportation industries. However, it may result in a rise in pollutant emissions such as nitrogen oxides (NO_X) and nitrous oxide (N₂O), which must be avoided.
• Policy challenge: Government policies and regulatory development support will be required for green ammonia to be economical.

 

Green ammonia in Vietnam

It’s clear that ammonia benefits the agriculture sector. Vietnam is an agricultural country. Therefore, fertilizer production is very important. Vietnam aims to be ammonia independent, however, currently it is still an ammonia importing country.

The largest ammonia plant, which is Phu My fertilizer plant (540,000 tons per year), does not provide enough ammonia for the whole Vietnamese population. The plant is currently using natural gas supplied by the offshore fields as feedstock. Moreover, the Vietnamese government’s target to be a carbon-neutral country in 2050 requires renewable, green hydrogen to be supplied to the ammonia plant [3].

Ammonia is considered to be a future energy carrier and fuel. Vietnam has a high potential to be an energy exporting country in the ASEAN region. The country has a long coastline with many opportunities for wind power. According to the World Bank, Vietnam’s offshore wind power potential is 500 GW by 2030. And 66% of this energy can be exported to other Southeast Asian countries. Solar power is another substantial opportunity in Vietnam with the country taking the lead in solar power capacity in the ASEAN. The largest renewable energy source is hydropower, which contributes 40% in total electricity capacity for the whole nation. Based on Vietnam’s renewable energy potentials, ammonia could become the country’s key energy export [4].

Vietnam is an agricultural country with rapidly increasing population. Vietnam majorly needs ammonia for fertilizer and chemical production, and this is driving strong interest in ammonia generation from renewables in Vietnam.  For the future, Vietnam is learning to produce green ammonia by adapting to new technologies. Therefore, Vietnam needs partners to support and are looking forward to expanding the connections towards green ammonia projects.

 

Conclusion

Green ammonia plays a crucial role in achieving the United Nations Sustainable Development Goals (SDGs). As the global population continues to grow, demand for energy rises. Transitioning from conventional gray ammonia production to green ammonia will significantly contribute to climate action (SDG 13) and clean energy supply (SDG 7) goals. Furthermore, the availability of green ammonia, a key component in fertilizer production, is vital for global food production, thus contributing to the goals of zero-hunger (SDG 2) and good health and wellbeing of the society (SDG 3).

Despite very low production and limited energy application of green ammonia today, green ammonia demand and production are likely to increase in upcoming years due to the focus on reducing carbon emissions. In recent years, green ammonia production and its applications have shown a substantial push with the announcement of projects by multiple players working in sustainability.

The adoption of innovations such as photochemical methods, electrochemical synthesis, and enhancements to the Haber-Bosch process underscores the industry’s commitment to sustainability. Moving forward, the focus of future developments should center on overcoming technological barriers through sustained research, collaboration

Although ammonia has the potential to be used as a clean fuel, considerable effort is required in developing and scaling new green ammonia production technologies, as well as inventing efficient and innovative ways to harness the energy it stores. In addition to this, a proper regulatory framework must be in place to realize the full-scale potential of green ammonia for decarbonization.

[1] https://www.grandviewresearch.com/industry-analysis/green-ammonia-market-report

[2] https://www.futurebridge.com/

[3] https://e.nhipcaudautu.vn/

[4] https://e.nhipcaudautu.vn/