[Haichuan Hydrogen Energy] The “ammonia-hydrogen” pathway – unlocking a trillion-dollar blue ocean in the zero-carbon circular economy

The ammonia industry is experiencing explosive growth…… Ammonia (NH3) is a fundamental chemical raw material that is crucial for the economy and people’s livelihoods, and it is widely used in fields such as fertilizers, environmental protection, **, and refrigeration. At the same time, ammonia, as an efficient hydrogen storage medium, has the following significant advantages: high energy density. The volumetric energy density of ammonia is approximately 13.6 MJ/L; 1 L of liquid ammonia is equivalent to 4.5 L of hydrogen at high pressure (35.0 MPa) or 1200 L of hydrogen at normal temperature and pressure. The cost of liquefaction, storage, and transportation is low. Ammonia can be stored and transported in liquid form by simply pressurizing it to 1.0 MPa. A liquid ammonia tank truck can carry up to 30 tons of ammonia (which corresponds to approximately 5.29 tons of hydrogen), meaning its hydrogen-carrying capacity is an order of magnitude higher than that of longer trailer trucks (whose hydrogen capacity is less than 400 kg). As a result, the cost of transporting ammonia (around 0.001 yuan/kg·km) is also an order of magnitude lower than the cost of transporting hydrogen (0.02–0.10 yuan/kg·km). Carbon-free energy storage. A mature technical framework for ammonia, along with relevant standards and specifications, as well as low-cost methods for its synthesis, storage, and transportation, enable seasonal, long-distance, and \"carbon-free\" \"ammonia-hydrogen\" energy storage. Studies have shown that among the several types of electrically produced liquid fuel technologies currently under investigation (liquid hydrogen, liquid ammonia, liquefied natural gas, methanol, and organic liquid hydrogen storage), the cost of producing ammonia electrically is the lowest, with its efficiency being second only to that of the other electrically produced liquid fuel technologies. High security. Ammonia has a fire hazard classification of only Category B, and its explosive range (16%~25%) is narrower than that of hydrogen (4%~76%), making it safer. Its pungent smell is a reliable warning signal. Therefore, developing ammonia as a hydrogen storage medium holds promise for solving the problems associated with traditional high-pressure hydrogen storage and transportation. The utilization of ammonia can be divided into traditional industries and new energy industries. Ammonia is widely used in traditional industries such as fertilizers, military manufacturing, environmental protection, and refrigeration; it is a fundamental chemical industry that is crucial to the economy and people’s livelihoods. In recent years, the utilization of ammonia has seen rapid development in new energy fields such as ammonia-based hydrogen production, ammonia fuel cells, and ammonia internal combustion engines/gas turbines, enabling carbon-free applications in industries including hydrogen end-use, ammonia-powered power generation, and ammonia fuels. In March 2021, Japan successfully achieved stable combustion of 70% liquid ammonia in 2000-kilowatt-class gas turbines, while simultaneously suppressing the generation of nitrogen oxides. IHI, which is involved in this project, said it is confident in achieving the commercialization of ammonia gas turbines by 2025. The ammonia-powered power generation demonstration project launched by JERA in October 2021 is a collaboration between IHI and JERA. Mitsubishi Heavy Industries is developing 40,000-kilowatt gas turbines that run solely on ammonia, with plans to bring them to market and install them in power plants after 2025. South Korea is also promoting joint research and development as well as the industrialization of liquid ammonia power generation and ammonia-hydrogen hybrid power generation technologies; a \"dual-fuel green ammonia\" power generation model is in the rapid development stage. The 8.3MW pure ammonia burner jointly developed by China’s **Energy Research Institute and WanNeng Group has demonstrated the feasibility of ammonia combustion-based power generation projects in thermal power generation. In addition, ammonia-powered ship technology is also developing rapidly; South Korea has developed 8,000-ton class ammonia-powered refueling ships that use light diesel and ammonia as dual fuels, and has completed the design of ultra-large liquefied petroleum gas transport ships that utilize liquefied petroleum gas and ammonia as dual fuels ； Japanese Sumitomo Corporation and Oshima Shipbuilding are collaborating to build the world’s first 8×104t-class ammonia-powered bulk carrier ； Norway is advancing the development of ammonia-powered ships and technologies for offshore ammonia fuel refueling, establishing an ammonia fuel refueling network to achieve carbon neutrality across the entire supply chain for ammonia-based shipping ； China’s first ammonia-powered car carrier with a capacity of 7,000 vehicles, independently developed and designed by the Shanghai Ship Research and Design Institute, has received a principle approval certificate from DNV.

Feasibility of integrated development of hydrogen and ammonia……Preliminary estimates indicate that using ammonia as a hydrogen storage medium offers significant economic advantages. For example: if ammonia decomposition for hydrogen production is used to supply hydrogen to hydrogen refueling stations, the hydrogen refueling cost at such stations can be reduced to below 35 yuan/kg ； If indirect ammonia fuel cell technology that integrates \"ammonia-to-hydrogen\" and fuel cells is developed to enable \"ammonia-to-power\" conversion at the user end, the power generation cost would be around 1 yuan/kW·h, or the fuel cost for passenger vehicles would be about 25 yuan/100km, while the range of existing hydrogen fuel cell systems could be nearly doubled ； If ammonia is used as a fuel for vehicles, gas stations only need minor modifications to be able to supply ammonia; it is estimated that the cost of modifying such stations to handle ammonia can be reduced by an order of magnitude compared to the cost of building hydrogen refueling stations. In line with China’s goal of establishing 10,000 hydrogen refueling stations by 2050, this could save nearly 100 billion yuan in infrastructure investment. Synthetic ammonia has a history of over a hundred years, and its production, storage, transportation, and use have given rise to a complete industrial chain, industry standards, and safety regulations. Synthetic ammonia includes three production processes: gray ammonia, blue ammonia, and green ammonia. The gray ammonia synthesis process involves using hydrogen produced by the steam reforming of natural gas and nitrogen obtained through air separation to synthesize ammonia via the traditional Haber process. This process has been in use for over a century, but its high temperature and pressure requirements result in high energy consumption, as well as significant emissions of CO2 greenhouse gases. The blue ammonia synthesis process is similar to gray ammonia, but carbon capture and storage are incorporated into the process flow. The green ammonia production process primarily refers to the production of hydrogen through water electrolysis powered by renewable energy, the production of nitrogen via air separation, and then the synthesis of ammonia using the Haber process. Based on China’s annual ammonia production of 50 million tons (of which 80% comes from coal-based ammonia synthesis and 20% from natural gas-based ammonia synthesis), the ammonia synthesis industry will emit 270 million tons of CO2 by 2030. Our country has the largest installed capacity for renewable energy, **but due to the intermittent, volatile, and seasonal nature of renewable sources such as solar power, wind power, and hydroelectric power, there is a significant amount of ‘wasted wind, wasted solar energy, and wasted water’.” In 2019, the total amount of electricity that was not utilized in China due to wind, hydro, and solar constraints was approximately 72 billion kWh, of which the amount wasted due to wind and solar issues was about 21.5 billion kWh ； In 2020, wind and solar power curtailment in China was primarily concentrated in the \"Three Norths\" regions; Gansu had the highest wind power curtailment rate at 13.8%, while Tibet had the highest solar power curtailment rate at 25.4%. Developing the technology of coupling renewable energy-driven water photolysis/electrolysis for hydrogen production with ammonia synthesis enables the \"utilization and peak-shaving\" of renewable energy electricity, facilitates low-cost, long-distance storage and transportation, and integrates with the diverse downstream industries of ammonia. Therefore, developing ammonia as a hydrogen storage medium and utilizing liquid ammonia for large-scale hydrogen transportation can link renewable energy, hydrogen energy, and traditional industries. This approach enables the creation of a comprehensive \"hydrogen-ammonia\" green circular economy pathway that takes into account the characteristics of China’s energy structure – one that involves \"clean and efficient ammonia synthesis, safe and low-cost ammonia storage and transportation, and carbon-free, efficient utilization of hydrogen and ammonia\". Such a pathway is of great significance for ensuring energy security, environmental protection, and sustainable socioeconomic development. Regarding the hydrogen-ammonia integration technology pathway, **relevant incentive policies have been introduced. In April 2022, the Ministry of Science and Technology issued the \"Guidelines for Submitting Applications for Projects under Key Special Programs such as the ‘Advanced Structures and Composite Materials’ Program in 2022\", outlining ammonia-related technologies including distributed ammonia decomposition for hydrogen production integrated with filling stations, as well as ammonia fuel cells for clean and efficient combustion with ammonia inclusion. The \"14th Five-Year Plan\" for the development of new energy storage systems proposes that, through pilot projects such as hydrogen (ammonia) storage generated from renewable energy, models of integrated development of wind, solar, hydrogen, and storage systems, as well as multi-energy complementarity in energy storage, should be explored as part of the regional demonstration initiatives for new energy storage during the \"14th Five-Year Plan\" period.

Practices in integrating wind, solar, hydrogen, and ammonia…… A renewable energy-based system for converting energy into \"green ammonia\" consists of a hydroelectric, wind, or solar power generation system, an apparatus for producing hydrogen through water electrolysis, hydrogen storage systems, pressure swing adsorption nitrogen separation units, an ammonia synthesis system, and an ammonia cracking process for hydrogen production. The core of this process is the technology for generating hydrogen using renewable energy sources. Numerous studies have shown that, when the capacity of the generator sets is the same, hydrogen production and storage systems that utilize a combination of wind, solar, or hydro power can deliver more stable output compared to systems that rely on a single renewable energy source. Such systems exhibit higher stability and reliability; moreover, they allow for a reduction in the capacity required for storage batteries, and there is little or no need to use backup power sources such as diesel generators. This results in significant social and economic benefits, in line with the goals of carbon reduction. In their 2022 study titled \"Cost Analysis of Hydrogen Production from Renewable Energy in the Coastal Areas of Zhejiang,\" Gao Yang and colleagues analyzed the configurations of wind power, photovoltaic energy, and hydrogen production equipment in renewable energy-based hydrogen production systems, and calculated the associated costs. These costs ranged from 34.18–36.56 yuan/kg and 41.07–42.82 yuan/kg respectively. They also explored the possibility of using photovoltaic energy combined with off-peak electricity for hydrogen production, and found that the resulting cost was around 25.56–26.95 yuan/kg, indicating good economic viability. In their 2022 study titled \"Technical and Economic Analysis of Converting Renewable Energy into Ammonia and Hydrogen Energy Systems,\" Li Zhijun and colleagues took as an example a plant capable of producing 300,000 tons per year of synthetic ammonia in Liangshan Prefecture, Sichuan Province, using renewable energy for water electrolysis to produce hydrogen and air separation to produce nitrogen. The total investment in this plant was 1,349,350,000 yuan. Based on the standards for ammonia production and the market prices of various consumables, with the electricity cost calculated at 0.18 yuan/kWh according to the pricing in Sichuan, the unit production cost of \"green ammonia\" was found to be 1,672 yuan per ton, indicating a high profit margin. The main factor affecting the production cost of ammonia synthesis is electricity price. At an electricity price of 0.3 yuan/kWh, the production cost of \"green ammonia\" is 2829 yuan per ton; adding the transportation costs (about 270 yuan per ton), this amount equals the market price of liquid ammonia, which is 3100 yuan per ton. By adopting the ‘four discards’ approach with renewable energy, and at an electricity price of 0.1 yuan/kWh, the economic benefit can reach a profit of nearly 2,000 yuan per ton. When the approach of \"producing green ammonia from renewable energy\" + ammonia transportation system + distributed ammonia cracking for hydrogen production\" is adopted, there is a significant cost advantage for hydrogen used at the end user level. When the price of renewable energy electricity is 0.1 yuan/kWh, the cost per ton of \"green ammonia\" is 900.55 yuan. Taking transportation costs into account (about 270 yuan per ton), the cost of liquid ammonia at the end user stage is 1170.55 yuan. The cost of producing hydrogen through distributed ammonia cracking is 18.13 yuan per kilogram, with a profit margin of around 50% on each kilogram of hydrogen, resulting in a profit of 16 yuan – thus the economic benefits are quite significant. Establish a renewable energy-based ammonia and hydrogen production system through the \"green ammonia\" transportation system. Ammonia synthesis can be powered by clean and abundant renewable energy sources; through ammonia transportation networks, distributed or on-site hydrogen supply can address the hydrogen supply system in a hydrogen society, thereby truly establishing a storage system for renewable energy. Therefore, establishing a renewable energy-ammonia-hydrogen system can reduce the proportion of fossil fuel consumption in the chemical and energy sectors, helping to achieve China’s goals of carbon peak and carbon neutrality, and is in line with China’s development direction toward green and low-carbon energy.

Nonsense, how much energy does the production of synthetic ammonia consume?

Yili Xintian Coal Chemical Co., Ltd. is located in Bayandai Town, Yining City, covering an area of 290.15 hectares. It is a holding project of Zhejiang Energy Group Co., Ltd. under its strategy to expand overseas, situated in Yili, Xinjiang. The project requires an investment of nearly 18 billion yuan, with an annual output of 2 billion standard cubic meters of natural gas; by-products include light hydrocarbons, mixed hydrocarbons, heavy aromatics, mixed phenols, ammonium sulfate, and sulfur. As a **model project, the Xintian coal-to-gas project has achieved the localization of 22 key technologies, equipment, and materials in its production process, with a localization rate of over 96.28%. This has broken the foreign technological monopoly, and many of its performance indicators are at the world’s leading level. Xintian Coal Chemical Industry fully adheres to energy and water conservation requirements, upholds the development philosophy that \"lucid waters and lush mountains are invaluable assets,\" and maintains high standards, strict requirements, and excellent quality in environmental protection, placing it at the forefront in this area. After the project was established in Yili, Xinjiang, it has played a positive role in promoting local economic development, addressing employment issues, stabilizing the border areas, and improving people’s livelihoods.

This is a scam; it’s a term used by those who don’t understand technology. Natural gas is used as a fuel, and electricity is used to electrolyze water to produce hydrogen. Do you know that natural gas is extracted at high pressure? Wouldn’t the cost of using it to produce hydrogen or synthetic chemical products be quite low? Think with your heels.

Without the use of natural gas, taking an ammonia synthesis plant with a capacity of 300,000 tons per year that produces hydrogen through renewable energy-based water electrolysis and nitrogen through air separation in Liangshan Prefecture, Sichuan Province, as an example, the total investment in this plant is 1,349,350,000 yuan. Based on the consumption standards for liquid ammonia production and the market prices of various consumables, with the electricity price set at 0.18 yuan/kWh according to the rate in Sichuan, the unit production cost of \"green ammonia\" amounts to 1,672 yuan per ton, indicating a high profit margin.

The cost of hydrogen production is around 25.56–26.95 yuan per kilogram. Based on this, the cost of hydrogen in ammonia already exceeds 4400 yuan; add in the operating costs and equipment depreciation, and you can imagine what the overall cost will be. “The unit production cost of \"green ammonia\" is 1,672 yuan per ton; I wonder who calculated that – maybe it was the math or physical education teacher.

The key to hydrogen energy utilization lies in the conversion efficiency and costs at each stage. It’s not enough to just focus on concepts.