ammonia production cost

A full list of members can be found in the Member Directory. (2) If the cost of renewable electricity becomes cheaper than about $50 per MWh, the cost of producing CO2-free ammonia from renewable hydrogen may become lower than that from natural gas. Natural gas and OTEC also provided low costs of less than 689 $/t, or a gasoline equivalent of 4.51 $/gal. Figure 2 Ammonia as the most cost-effective energy carrier. In Japan, a green ammonia pilot plant began operations in Fukushima in April 2018. 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. Such estimations have been made by independent public organizations, both domestic and foreign, as discussed below. The article that follows is Shiozawa’s English translation of his series’ part 6. 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. For ease of reference, the table below shows the cost per tonne of ammonia that corresponds with the government’s 2030 and 2050 hydrogen cost targets. The cost analyses presented in the report Ammonia E21A target a 800 kta (kilometric tons per annun) United States-based plant. 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. Most of the fuel for ammonia production is consumed in the primary reformer (about 78%) and the remaining in auxiliary boilers. According to these analyses, the cheapest CO2-free ammonia would be the one produced in the Middle East. This cost was estimated at $40-80 per tonne-NH3 by the IEEJ study. Reducing Ammonia Emissions from Dairy Cattle Production via Cost-Effective Manure Management Techniques in China Nannan Zhang Key Laboratory of Agricultural Water Resource, Hebei Key Laboratory of Soil Ecology, Center for Agricultural Resources Research, Institute of Genetic and Developmental Biology, The Chinese Academy of Sciences, 286 Huaizhong Road, Shijiazhuang 050021, Hebei, P. R. … 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. The energy efficiency of ammonia production using a natural gas feedstock in particular has almost reached the theoretical limit. Over the last year he published in the on-line journal of the International Environment and Economy Institute a ten-part series of articles that describe and reflect on the work done by him and his colleagues, and its impacts in Japan and beyond. stream By Svend Ravn. The large quantities of ammonia produced globally in this way (more than 235 million tonnes, which ie. 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. For the Middle East to Japan, logistics costs are $40 per tonne-NH3; for North America to Japan, $80 per tonne-NH3. The biggest cost of ammonia manufacturing is natural gas. To state my conclusion at the beginning, the cost of CO2-free ammonia can be less than 30 yen/Nm3-H2, which is the 2030 cost target for hydrogen energy set by the Japanese government in its Basic Hydrogen Strategy[1] for introducing hydrogen energy into Japan. Future of ammonia production. The production cost consists of three main components, namely capital expenditure (Capex), operating and maintenance (O&M), and feedstock. This is shown in the figure immediately above, where the estimated cost of CO2-free ammonia produced from renewable hydrogen in Australia and exported to Japan is estimated to be about $4.40 per kg-H2 (equivalent to about $700 per tonne-NH3, just about double the cost of CO2-free ammonia produced with CCS). 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. Labour and other costs were the second most important component of the production costs in the industries of these two products. The compromise. /Length 19070 (1) If natural gas is used as a feedstock and the CO2 emitted from the production process is removed by CCS, the production cost of CO2-free ammonia is about $300 per tonne-NH3 (assuming a natural gas price of $3.00 per MMBtu; this is the solid blue line in the graph.) At a raw natural gas price of $10.00 per MMBtu (blue dotted line), the cost of producing CO2-free ammonia is about $530 per tonne-NH3. Specifically, the variable cost of ammonia ($ per tonne-NH 3) can be approximated by simply multiplying the cost of natural gas ($ per MMBtu) by 30. D. SEDDON China produced 31.9% of the worldwide production, followed by Russia with 8.7%, India with 7.5%, and the United States with 7.1%. ), which varies with location and age of the plant’s facilities (and often other factors), must be added to the variable cost. Based on the scale of an ammonia plant and pricing of natural gas, the electricity and feedstock expenditure of natural gas accounts for 72-85 percent of the overall cost of output. 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. If membrane costs are kept constant, the cost … ;�{{�+�Z;���}�PM �+�;�K�����}�. by University of Tokyo. Storage of energy, whether in a battery (present cost US$300 000/MWh stored) or as compressed hydrogen, will also increase the capital and production costs significantly. EOR technologies exist for complete CO2 sequestration at low incremental cost. Ammonia from sustainable and renewable feedstocks Modern ammonia production based on natural gas (NG) or coal has been opti-mised over more than 80 years. Ammonia Manufacturers. Ammonia—a renewable fuel made from sun, air, and water—could power the globe without carbon. x��}x\���̽w{�M۴�]I+iջ���,˲$˖l˖܍{7nL5:��b�)�lcSL�!H#�K�L ���̝;*�(���y��{����睹s�Μ�9sf�]a���E����7� �7���kz��znΟ�倔�[7�n=�*B\B��e뗯���f-B�]���W���{��N#d�Bu�W,�]��K�o#4Ҡ��{X��5NY�f����g ��yw��Ž?~Ү���r�������y�����Y�ty!�w�r~�ƥ�W=� C�b�ވx!��E2�����>*�WХR"� �8N�9�mč$�C#��jnP5r4��)�\$���L�'w��Լx� � 2��:��Q��8*D��MC3���G�=�.�p���IF)p]�F�h*jD�Q�E����)G��o�{�����(H��p�*�s>Z6�������w��O��s��&dFN��"( The ammonia production rate is a record for electrochemical production, however the energy efficiency is still only 1.4–2.8%, so it cannot yet compete with the energy efficiency of the Haber-Bosch process, which is around 50–80%. 1��JRfte�?�����hQOL�$��w~g���k�↓��K���������/#TS�AfMm�7�}��1����ybL�#��%UU�gA٠�P�`�����Z�����4@�(�u�q=��Iv��A��egF/� IS��H���p��]�� �������HϢ�+��]�?TSC�6��/Q$�+յ�? With an increasing focus on energy consumption systems, ammonia refrigeration … How to reduce ammonia production cost with improved ammonia synthesis catalyst? Figure 3 Green ammonia and low carbon fertilizer production in 2050. If the pressure used is too high, the cost of generating it exceeds the price you can get for the extra ammonia produced. The next highest energy consuming process is urea production. 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. ammonia could be produced for about $350/t. Two conclusions can be derived from these analyses. Since slightly more than 1.6 tons of CO2 is emitted per ton of ammonia production[3], the cost of producing CO2-free ammonia by production method (a) can be estimated by adding the cost of CO2 removal to the ammonia production cost. To maintain a competitive posit ion against US imports the gas price for a new Australian facility would have to be in the region of $3/GJ or below. 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). The cost of hydrogen, which is the main feedstock for ammonia production, was first determined for both fossil-fuel and Copyright © 2019 Ammonia Energy Association. Natural gas use for energy purposes accounts for 66% of overall energy expenses (excluding feedstock use). 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. 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. [3] IEA, The Future of Hydrogen, June 2019. If the pressure used is too high, the cost of generating it exceeds the price you can get for the extra ammonia produced. A stable binary hydride, as well as the simplest pnictogen hydride, ammonia is a colourless gas with a characteristic pungent smell. In the discussion below I consider the cost aspect of CO2-free ammonia. This analysis makes clear that the availability of EOR can meaningfully influence the economics of CO2-free ammonia from natural gas. /Filter /FlateDecode Second, until around the year 2030, the cost of CO2-free ammonia from a combination of natural gas and CCS will be considerably cheaper than that of renewable hydrogen. Feedstock comparison in ammonia production Natural Gas Heavy Oil Coal Energy Consumption 1 1.3 1.7 Investment Cost 1 1.4 2.4 Production Cost 1 1.2 1.7 Note that the graph puts the cost of producing natural gas-based (non-CO2-free) ammonia at around $220 per tonne-NH3, at a natural gas price of $3.00 per MMBtu (solid gray line). << 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%. >> Globally, ammonia production plants made 157.3 million metric tons (t) of the compound in 2010, according to the Institute for Industrial Productivity’s Industrial Efficiency Technology Database. 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. Contents 1. declining energy cost. Editor’s note: Bunro Shiozawa is a Senior Associate at Sumitomo Chemical Company. Also considering high transportation costs, the break-even point for green ammonia production is shifted to 0.055 $/kWh. Results and Discussion 4. 9 0 obj Ammonia Production Cost Analysis 2020 Ammonia is an example of a well-known compound of nitrogen and hydrogen. The most modern plants come even closer to the theoretical limit with efficiencies of 28-29 GJ per tonne-NH3. Ammonia Economy, which treats ammonia as an alternative fuel and energy storage mechanism. 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. The formation of ammonia from nitrogen and hydrogen is mildly exothermic: about 46 kJ/mol for anhydrous ammonia, ~80 kJ/mol for aqueous. 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. 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. With an increasing focus on energy consumption systems, ammonia refrigeration … More specifically, in the left-hand panel, the cost of importing ammonia from the Middle East to Japan in the form of CO2-free ammonia, produced from natural gas with subsequent CCS, is estimated at about $2.30 per kg-H2 (about $360 per tonne-NH3). 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 $400/t. /analysis/ammonia-production-cost. Ammonia more hydrogen dense than hydrogen itself. %/E�բ&(�\� -A+�&�s؀�؍}8��sq7^���-x+ލ��W�k�-�(>���?��B߸��&x&:r�ǥ�jtz�-B���D�>�z�qvM�;���ek��?��Ȃ���#g��5�bn��E�ŌG>8+��F�Ãr3R���W!�c<4�9WI�#�$�]� ^���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? 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. Other uses for ammonia include as a refrigerant, a cleaning and bleaching agent, and a household cleaner. 200 atmospheres is a compromise pressure chosen on economic grounds. There is potential for decreases in capital and operating costs by further optimizing minor equipment, but the capital cost is limited by the capital costs of hydrolysis. Under such circumstances, knowing the price of feedstock natural gas makes it possible to estimate the variable production cost of ammonia for each production plant. If not the fertilizer producer has an economic incentive to sell the ammonia instead of producing urea. By Robert F. Service Jul. Operating costs are projected to keep falling as the price of renewable power continues to drop. At this ammonia production cost, a rough estimate for the cost of hydrogen available in the ammonia (assuming a cracking efficiency of about 75%) is ~$3.00/kg (gge). CO2-Free Ammonia Production Cost as Estimated by the IEA. Finally, the issue of CO 2 tax as well as CO 2 emission restrictions need to be considered, which will further 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. High pressures cost a lot to produce and maintain. 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. Logistics costs vary depending on the point of origin, the size of the ship, and the number of times the product is loaded and unloaded. It was found in the environmental comparison that the patented process, if scaled globally, would address and eliminate 7% of the total CO There is a global drive to demonstrate green ammonia plants and, thereby, to begin developing a market for green ammonia. To estimate total production cost, the fixed cost of the plant (plant capital, labor, etc. 11 Recognizing that the lower heating value (LHV) of ammonia is 5.2 MWh tonne −1, this represents an energy efficiency of only 65%. Ammonia—a renewable fuel made from sun, air, and water—could power the globe without carbon. 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For complete CO2 sequestration at low incremental cost value for fixed cost the... ’ s English translation of his series ’ part 6 members can used! Most cost-effective energy carrier and fuel ammonia arriving in Japan another IEA analysis cost estimate is supported another... Translation of his series ’ part 6 % of overall energy expenses ( excluding use... Renewable fuel made from sun, air, and operation breakdown of these costs for each process in each from... Is an example of a well-known compound of nitrogen and hydrogen ammonia is indicated as the price can. The energy efficiency of ammonia will enhance the feasibility drastically eventual fuel.. Is an example of a well-known compound of nitrogen and hydrogen, storage, and water—could power globe. Capacity of 80,000 m3 [ 1 ] Decided by Relevant Ministers Council on Renewable Energies and which!

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