How ammonia helps decarbonization

Although it may be best known for its use in cleaning products and fertilizers, this gas can also be seen as an energy transition ally, especially for its use in shipping of heavy freight and other industries where electrification is difficult

Although most of us would probably think of ammonia as a cleaning product, it actually has a much wider range of applications. This colorless gas (NH3) has a strong, distinctive odor, and is naturally produced through the decomposition of organic matter. However, it can also be produced at a large scale by using the Haber-Bosch process, which is based on a reaction between nitrogen and hydrogen gases.  

On a worldwide basis, ammonia is one of the most widely produced chemical products, with an annual average production of 185 million metric tons, according to estimates made by the Spanish Renewable Ammonia Association (AEAR). It is also a product with a very wide range of applications. For household use, liquid ammonia has degreasing and stain removal properties that make it a perfect choice for cleaning bathrooms, kitchen countertops, and even tough stains on clothing and carpets. It can also be used to remove varnish from wood, and since the 19th century it has been used in agriculture to produce fertilizers. Some of its other more specialized applications include preventing corrosion in boilers, by raising the water’s pH level, and its use as a refrigerant gas in air conditioning units. Additional industrial uses for ammonia include processes related to pulp and paper production, wastewater treatment, and manufacturing of paints and plastics. 

A key product for maritime transport

All of the applications described above typically make use of grey ammonia, which refers to ammonia derived from an industrial process that uses hydrogen produced by natural gas combustion. In recent years, however, a more sustainable variant has emerged, referred to as green ammonia. The primary difference, as explained by Moeve, is that “green ammonia is obtained via a process called electrolysis, where electricity generated from renewable sources, such as solar or wind power, is used to break the bonds of water molecules to obtain the required hydrogen molecules”. This produces green hydrogen, which can then be combined with atmospheric nitrogen to produce green ammonia, in a process that is carbon neutral.” This green ammonia is therefore a derivative of green hydrogen. 

What this means is that in cases where electrification may not be feasible, such as in the aviation and maritime sectors, or in certain industrial processes that make use of high temperatures, second-generation biofuels such as green hydrogen and its derivatives are taking on a major role in the energy transition. In this way, they are also helping to achieve the ambitious goals set by the European Union for reducing emissions and achieving energy independence.

In relation to maritime transport, it is worth pointing out that 90% of global trade is still carried out by sea, and although this is not the most highly polluting sector, it is still responsible for 3% of the total amount of carbon dioxide emissions. In Europe this percentage increases to 13.5%, although there are now European regulations that have the aim of achieving an 80% reduction in this figure by 2050.

As explained by Moeve, “it is expected that in the coming years, shipping companies will continue to shift away from the use of traditional fuels to rely upon other alternatives such as green ammonia, which will in turn help reduce CO2 emissions and achieve the EU’s targets.”

In addition to its use as a fuel, another advantage of this renewable gas is that it can be used as a carrier for green hydrogen, which allows its transportation by ship. “Transporting ammonia is easier and more sustainable compared to hydrogen, since it can take place at a higher temperature. And after ammonia has been shipped, it can be converted back into hydrogen to allow its direct use, or for further distribution through the process of cracking the molecule,” the company adds. 

Projects for a benchmark Spain in the production of green molecules

The AEAR estimates that these new uses for the more sustainable version of ammonia could cause worldwide demand to reach 600 million metric tons by 2050. Aware of this potential, the European Commission has created an ad hoc project to encourage the production of green hydrogen and its variants, as an Important Project of Common European Interest (IPCEI) known as Hy2Use, with Spain playing a very significant role.

In July, Spain’s central government allocated €794 million to support a variety of projects and technologies, with the aim of “replacing fossil energy and eliminating CO2 emissions from industry, heavy freight transportation, and other sectors where decarbonization is difficult.” With this investment, the government’s aim is to “add 652 MW of additional electrolysis power, produced via solar, wind, and hydraulic energy, while attracting more than €6 billion in investment during the service life of the associated projects.” 

This commitment will be focused on five valleys or clusters, located in the Spanish regions of Andalusia, Aragon, Asturias, Castilla-La Mancha, Murcia, and the Basque Country, where high-capacity electrolyzers rated at 100 MW or more will be constructed in areas with high levels of industrial activity, such as ports and other industrial complexes. 

For example, in the case of the Andalusian Green Hydrogen Valley, Moeve plans to build facilities with a capacity of 2 GW of electrolysis as part of its Positive Motion strategy, for producing green hydrogen and its derivatives green ammonia and methanol. The company expects that these two facilities will be able to produce up to 300,000 metric tons of green hydrogen each year in the Andalusia region. 

In addition, Moeve has signed various agreements with other European companies to promote development of the Algeciras-Rotterdam green hydrogen corridor. Since February 2023, this has included collaboration with the ACE Terminal consortium (formed by Gasunie, HES International, and Vopak), for the purpose of supplying green ammonia to the planned import terminal at the Port of Rotterdam. This ammonia will be used either for industrial purposes, or as fuel for the maritime sector and other industries in northwestern Europe.

In addition, the Norwegian multinational Yara Clean Ammonia will be supplying green ammonia to Moeve, and thanks to an agreement with the Dutch company Evos, the company will be able to store methanol and green ammonia at that company’s facilities located at the two strategic ports of Algeciras and Rotterdam. 

As summarized by Moeve, “it has now become clear that in order to make progress with the energy transition and achieve the decarbonization objectives, there needs to be access to a combination of technologies that can be adapted to the specific characteristics of each sector. This is why in addition to emphasizing electrification of the economy, the EU’s energy policies are giving an increasingly important role to green molecules as part of this transformation process.”