itif.orgClimate-TechtoWatch:GreenAmmoniaHANNAHBOYLESAPRIL2023Greenammoniahasattractedplentyofrecentattention.Thetechnologyispromising,butcostreductions,demonstrations,infrastructure,andmarketgrowthareallstillneededifitistorealizeitspotential.KEYTAKEAWAYSThetransitiontonet-zeroCO2globalenergysystemswillrequirecountriestodeployarangeoftransformationaltechnologies.Greenammoniaisenvisionedtoplayaroleintransitioningheavyindustryandagriculturesystemsaswellasbeingalow-carbonenergycarrier.Currentammoniaproductionisresponsiblefor1.8percentofglobalCO2emissions.Producingthehydrogenneededtomakeammoniafromwaterelectrolysisandrenewableenergy(e.g.,greenammonia)isaroutetosignificantlyreducecarbonemissions.Theglobalgreenammoniaindustryisstillinitsearlystages,withonlyafewpilotprojectsinoperation,butithasattractedtheattentionofindustryplayersandgovernmentsaroundtheworld.Bringingthecostsdown,improvingefficiency,increasingproductionscale,andexpandingpipelineinfrastructurewillbecrucialfornewapplicationsandtheincreaseddemandenvisioned.DOEshouldenabletheuseofgreenhydrogeninexistingammoniaproductionbysupportingdemonstration-scaleprojectscoupledwithRD&Deffortsincatalysis,reactordesign,andseparationstofurtherreducecosts.Publicfundingfordemonstrationsofnewenduseswillhelpcreateamarketforgreenammonia.INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATIONAPRIL2023PAGE2WHATISIT?Ammonia,acolorlessgaswidelyusedtoproducefertilizer,hasbecomethesubjectofintenseinterestduetoitspromiseasanenergycarrierandzero-carbonfuel.Producingammoniaisenergyintensiveandtypicallyinvolvesareactionoffossil-derivedhydrogenandnitrogenobtainedfromtheatmosphere.Mostoftheassociatedcarbonemissionsarefromtheuseofnaturalgasasafeedstockforthehydrogenprecursor.Alternatively,producingthehydrogenfromwaterelectrolysiswhereinrenewableelectricityistheenergysource(e.g.,greenammonia)isaroutetosignificantlyreducethecarbonemissionsfromammoniaproduction.1WHYISITIMPORTANT?GREENAMMONIAASACROSSCUTTINGCLIMATESOLUTIONThetransitiontoanet-zerocarbondioxide(CO2)globalenergysystemwillrequirecountriestodeployawiderangeoftransformativelow-carbontechnologiesinordertochangehowenergyisgenerated,transported,andused.GreenammoniaisenvisionedtoplayseveralrolesinbreakingthedependenciesbetweenenergyuseandCO2emissions(e.g.,decarbonization)inheavyindustryandagriculturesystemsaswellasbeingalow-carbonenergycarrier.2Currentglobalammoniaproduction,mainlyforuseasafeedstocktoproducefertilizer,isroughly194milliontonperyearandisresponsiblefor1.8percentofglobalCO2emissions.3Widespreadadoptionofgreenammoniacouldthereforesignificantlyreduceagriculture’scarbonfootprint.Arecentstudyestimatesthatusinggreenammoniaforfertilizer,heat,andfuelcouldreducethefossilenergyconsumptionofcornandothersmallgraincropsby90percent.4Beyondagriculture,greenammoniaoffersadditionaldecarbonizationoptionsacrossotherindustries.Ithasahighenergydensityand—unlikehydrogen—doesnotneedtobestoredatextremelylowtemperaturesorhighpressures,makingiteasiertotransport.5Thesepropertiesareespeciallyrelevantinthemaritimesector,whichisresponsibleforroughly3percentofglobalemissions.6TheInternationalEnergyAgency(IEA)seesammoniaasavitalsolutionfordecarbonizingshipping,potentiallyaddressing45percentofenergydemandby2050.7Greenammoniamayalsoplayanimportantroleasanenergycarrierinthepowersector.Itisagoodcandidatefortransportinghydrogen,andcanalsobeusedasalong-durationstoragemediumtoprovideelectricityattimeswhenrenewablegenerationislow.Inthiscase,variablerenewableenergy(e.g.,wind,solar)couldbeusedtomakehydrogenandthenammonia,whichcouldbestored.Wheneverenergyuseisneeded,theammoniacouldbereconvertedtoprovidethatenergy.And,asstoringpowerforinter-seasonalperiodsiscostly,ammoniacouldreducecostsinthisarea.8INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATIONAPRIL2023PAGE3Figure1:RoleofgreenammoniainfutureenergysystemsINFORMATIONTECHNOLOGY&INNOVATIONFOUNDATIONAPRIL2023PAGE4Scalingupglobalammoniaproductiondoes,however,comewithattendantrisks.Ammoniaistoxic,andthoughitisnotitselfagreenhousegas,ammonialeakscaninteractwithotherairbornechemicalstoformfineparticulatematterthatultimatelyaffectsairquality.9Inaddition,burningammoniainsteadoffossilfuelsgeneratesnitrogenoxides(NOx),althoughexistingtechnologiescanminimizetheseemissions.10Figure1illustratesthelandscapeofammoniagenerationanduses.GLOBALPROGRESSTheglobalgreenammoniaindustryisstillinitsearlystages,butithasattractedtheattentionofindustryplayersandgovernmentsaroundtheworld,withpilotplantsalreadyinoperation,includingthoseinBritainandJapanthatarepoweredbywindenergy.Severalcompaniesalsohavecommercial-scaleplantsindevelopment.NorwegianchemicalcompanyYaraisbuildingaplanttoproduce3,500tonsofgreenammoniaannuallyinAustralia.ThelargestprojectannouncedtodateisinSaudiArabia.Oncecompletein2025,itwillprovide1.2milliontonsofgreenammoniaannually.11Inparallel,manycompaniesandgovernmentsaresupportingresearchintonewapplicationsforgreenammonia.Mitsubishiisdevelopingturbinestodirectlycombustammonia,andJapanhasfundedaprojecttoretrofitshipstorunonammoniaby2024.LeadingmaritimeenginemanufacturersMANandWärtsilähavebothannouncedplanstomakeinternalcombustionenginesthatcanrunonammoniacommerciallyavailableby2024.12PROGRESSINTHEUSGreenammoniaiscurrentlyonlyproducedatapilotscaleintheUnitedStates,butmajoreffortsareunderwaytoachievecommercialization.TheDepartmentofEnergy(DOE)hasplayedaninstrumentalroleinfundingearly-stageresearch,development,anddemonstration(RD&D)projectsforproducinggreenammonia.ThroughtheAdvancedResearchProjectsAgency-Energy(ARPA-E)REFUELprogram,DOEhasfundedcomponenttechnologiesandpilotsystemsfortheproductionanduseofammoniaasacarbon-neutralliquidfuel.FollowingtheREFUELprogram,ARPA-Eawardedanadditional$10milliontotheResearchTriangleInstitutetodemonstratetheproductionanduseofrenewableammonia.13Additionally,theDOEOfficeofBasicEnergySciencehasfundedsixfundamentalresearchprojectstohelpdecarbonizetheexistingammoniamarket.14CFIndustries,theworld’slargestammoniaproducer,announcedplanstobuildagreenammoniaplantin2020inLouisiana.Itwillproduce20,000tonsofgreenammoniaperyearonceitbeginsoperationsin2023.15KEYPOLICYISSUES:INNOVATIONTOADDRESSCOSTANDSCALE.Effortsbyindustrytoproducegreenammoniaatscaleareaidedbyfederalsupportforlow-carbonhydrogenproduction.TheBipartisanInfrastructureLawappropriates$9.5billiontosupportthegrowingcleanhydrogenmarket,andtheInflationReductionActof2022providesfurtherincentives,includingaproductiontaxcredit.16Despiterecentincentives,greenammoniastillfacessignificantbarrierstobecomingcompetitive,especiallyinnewendusessuchasshipping.Atitscurrentcost—roughly$794to$1,543perton—greenammoniaisunlikelytobecompetitiveintheglobalfertilizermarketorasINFORMATIONTECHNOLOGY&INNOVATIONFOUNDATIONAPRIL2023PAGE5asolutioninothersectors.Forexistingapplications,greenammoniawillhavetomeetthecostsoffossilfuels,whichrangefrom$121to$375perton.17Forgreenammoniatobecomeaviablelow-carbonfuelforshipping,itwillneedtobeeconomicallycompetitivewiththefossilfuelsthatarecurrentlyusedinshipping,includingheavyfueloil(HFO)andmarinegasoil(MGO).Greenammoniawillalsohavetocompeteagainstotherlow-carbonalternativessuchasbiodiesel.18Figure2:Comparativecostrangesforshippingfuel,pergigajoule19Usingammoniaforpowergenerationorenergystorageintroducesadditionaleconomicandtechnicalconsiderations.Onesuchfactorisround-tripefficiency,whichmeasurestheefficiencyofconvertingrenewableenergytoammonia,storingandtransportingtheammonia,andthenconvertingtheammoniabackintoelectricity.Theend-to-endefficiencyofgreenammoniaisonlybetween11and19percent,meaningtheresultingpowerwillbebetweenfiveandninetimesmoreexpensivethantheoriginalpowerusedtoproducetheammonia.Modelingofammonia-firedpowerinJapanfindsthatgeneratingpowerfromammoniawouldcostabouttwiceasmuchasrenewableenergyduetothelowround-tripefficiency.Whiletheefficiencymayimprove,greenammoniaisunlikelytobecomeacompetitivepowersource.20Bringingthecostsdown,improvingefficiency,increasingproductionscale,andexpandingpipelineinfrastructurewillbecrucialfornewapplicationsandtheincreaseddemandenvisioned.DOEplaysanimportantroleinovercomingthesebarriersbyfundingRD&Dtoaccelerateinnovation.Researchintosuchareasasnewcatalysts,reactordesigns,andseparationstrategiescanimprovetheefficiencyofammoniaproductionandbringdowncosts.ARPA-EfundsseveralRD&Dprojectsrelatedtolow-carbonammoniathroughthe$36millionREFUELprogram.Public$0$10$20$30$40$50$60$70GreenAmmoniaBiodieselMarineGasoilHeavyFuelOilLiquefiedNaturalGasINFORMATIONTECHNOLOGY&INNOVATIONFOUNDATIONAPRIL2023PAGE6RD&Dfundingisalsoneededtoaddressenvironmentalandsafetychallengesassociatedwithammoniacombustion,includingdevelopingandtestingmethodstoreduceNOxemissions.21Policiesthatsupportend-userdemandforgreenammoniaarealsoessential.Forexample,DOErecentlyfundedtwoprojectstostudytheuseofammoniaingasturbines.22Similarly,theInternationalMaritimeOrganizationisworkingtodevelopguidelinesforthesafeuseofammoniaasamarinefuel,whichwouldhelpexpanddemand.23LOOKINGFORWARDGreenammoniahasattractedplentyofrecentattention.Thetechnologyispromising,butcostreductions,demonstrations,infrastructure,andmarketgrowthareallstillneededifitistorealizeitspotential.Inadditiontothecostreductions,governmentRD&Disneededtosupporteffortstoremovetechnicalbarrierssuchaslowround-tripefficiency.AcknowledgmentsTheauthorwouldliketothankEdRightorandRobinGasterfortheirhelpwiththisreport.AboutThisSeriesInnovationtomakeenergyclean,affordable,andreliableshouldbeacentralgoalofclimateandenergypolicy,becausethesoberingrealityisthatclimatechangecausedbyunabatedcombustionoffossilfuelswillcontinueuntilcleansystemsmatchconventionalsystemsinpriceandperformance.Butthegoodnewsisthatthereisawiderangeofopportunitiestodojustthat—ifinnovationpolicyhelpstheprivatesectorunlockthem.Inthisseriesofbriefings,ITIF’sCenterforCleanEnergyInnovationprovidesoverviewsofpromisingclimatetechnologies,highlightingprogressthathasbeenmadeonthem,whatstillneedstobedone,andwhattheUnitedStatescandotobringthemtomaturitysotheycancontributetothetransitiontonet-zeroemissions.AbouttheAuthorHannahBoylesisaresearchassistantwithITIF’sCenterforCleanEnergyInnovation.Previously,BoyleswasaresearchassistantattheWeldonCooperCenterandtheROMACLabinCharlottesville,Virginia,andhasinternedwiththeAmericanEnergySociety.BoylesholdsabachelorofsciencedegreeinaerospaceengineeringfromtheUniversityofVirginia.AboutITIFTheInformationTechnologyandInnovationFoundation(ITIF)isanindependent501(c)(3)nonprofit,nonpartisanresearchandeducationalinstitutethathasbeenrecognizedrepeatedlyastheworld’sleadingthinktankforscienceandtechnologypolicy.Itsmissionistoformulate,evaluate,andpromotepolicysolutionsthataccelerateinnovationandboostproductivitytospurgrowth,opportunity,andprogress.Formoreinformation,visititif.org/about.INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATIONAPRIL2023PAGE7ENDNOTES1.“Ammonia:zero-carbonfertiliser,fuelandenergystorage”(TheRoyalSociety,February2020),https://royalsociety.org/-/media/policy/projects/green-ammonia/green-ammonia-policy-briefing.pdf.2.InternationalEnergyAgency(IEA),AmmoniaTechnologyRoadmapTowardsmoresustainablenitrogenfertilizerproduction(IEA,October2021),https://iea.blob.core.windows.net/assets/6ee41bb9-8e81-4b64-8701-2acc064ff6e4/AmmoniaTechnologyRoadmap.pdf.3.“Ammonia”(TheRoyalSociety).4.NicolaJones,“FromFertilizertoFuel:Can‘Green’AmmoniaBeaClimateFix?”Yale360,January20,2022https://e360.yale.edu/features/from-fertilizer-to-fuel-can-green-ammonia-be-a-climate-fix.5.MariaGallucci,“WhytheShippingIndustryisBettingBigonAmmonia,”SpectrumIEEE,February23,2021,https://spectrum.ieee.org/why-the-shipping-industry-is-betting-big-on-ammonia.6.Ibid.7.IEA,NetZeroby2050ARoadmapfortheGlobalEnergySector(IEA,May2021),https://iea.blob.core.windows.net/assets/deebef5d-0c34-4539-9d0c-10b13d840027/NetZeroby2050-ARoadmapfortheGlobalEnergySector_CORR.pdf.8.IEA,AmmoniaTechnologyRoadmap.9.JonathanLewis,“FuelsWithoutCarbon”(CleanAirTaskForce(CATF),December2018),https://www.catf.us/wp-content/uploads/2018/12/Fuels_Without_Carbon.pdf.10.NickAshandTimScarbrough,“SailingonSolarCouldgreenammoniadecarbonizeinternationalshipping?”(EnvironmentalDefenseFund(EDF),May2019),https://www.edfeurope.org/news/2019/02/05/shipping-can-reduce-climate-pollution-and-draw-investment-developing-countries;PaulWolframetal.,“Usingammoniaasashippingfuelcoulddisruptthenitrogencycle,”NatureEnergy(October2022),1112–1114,https://doi.org/10.1038/s41560-022-01124-4.11.Jones,“FromFertilizertoFuel.”12.IEA,AmmoniaTechnologyRoadmap.13.ResearchTriangleinstitute(RTI),“RTIInternationalAwarded$10millionfromU.S.DepartmentofEnergy’sARPA-EtoDemonstrateRenewableAmmoniaProductionandUse,”newsrelease,May6,2021,https://www.rti.org/news/rti-international-awarded-funding-us-department-energy;“RenewableEnergytoFuelsThroughUtilizationofEnergy-DenseLiquids,”ARPA-e,accessedFebruary16,2023,https://arpa-e.energy.gov/technologies/programs/refuel.14.TrevorBrown,“USDOEfundingresearchintosustainableammoniasynthesis,”AmmoniaEnergyAssociation,January27,2017,https://www.ammoniaenergy.org/articles/us-doe-funding-research-into-sustainable-ammonia-synthesis/.15.Jones,“FromFertilizertoFuel.”16.U.S.DepartmentofEnergy(DOE),DOENationalCleanHydrogenStrategyandRoadmap,(Washington,D.C.:DOE,2022),https://www.hydrogen.energy.gov/pdfs/clean-hydrogen-strategy-roadmap.pdf.17.InnovationOutlook:RenewableAmmonia,InternationalRenewableEnergyAgency(IRENA),May2022,https://www.irena.org/publications/2022/May/Innovation-Outlook-Renewable-Ammonia.18.InternationalEnergyAgency(IEA),“IndicativeShippingFuelCostRanges”(accessedMarch28,2023),https://www.iea.org/data-and-statistics/charts/indicative-shipping-fuel-cost-ranges.19.Ibid.INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATIONAPRIL2023PAGE820.JosephElKadi,CollinSmith,andLauraTorrente-Muriciano,“H2andNH3—thePerfectMarriageinaCarbon-freeSociety,”TheChemicalEngineer,May28,2020,https://www.thechemicalengineer.com/features/h2-and-nh3-the-perfect-marriage-in-a-carbon-free-society/;MichaelLiebreich,“TheUnbearableLightnessofHydrogen,”BloombergNEF,December12,2022,https://about.bnef.com/blog/liebreich-the-unbearable-lightness-of-hydrogen/.21.“H2IQHour:Ammonia:FromFertilizertoEnergyCarriers:TextVersion,”DOEHydorgenandFuelCellsTechnologyOffice,https://www.energy.gov/eere/fuelcells/h2iq-hour-ammonia-fertilizer-energy-carriers-text-version.22.DOE,“DOEAnnouncesNearly$25MilliontoStudyAdvancedCleanHydrogenTechnologiesforElectricityGeneration,”newsrelease,May19,2022,https://www.energy.gov/articles/doe-announces-nearly-25-million-study-advanced-clean-hydrogen-technologies-electricity.23.InternationalBunkerIndustryAssociations(IBIA),“IMOtodevelopguidelinesforsafeuseofammonia,”newsrelease,May4,2022,https://ibia.net/2022/05/04/imo-to-develop-guidelines-for-safe-use-of-ammonia/.