Latest Updates on Hydrogen and Ammonia Energy
From：
Zhonglin International Group Date：06-22 914 Belong to：Industry Related
On June 3rd, Mitsubishi Heavy Industries of Japan announced that it will conduct a feasibility study on ammonia power generation in existing thermal power plants in Indonesia, in order to utilize Indonesia's abundant oil and natural gas production through reforming to produce ammonia, and build a series of value chains for ammonia production, transportation, fuel consumption, and carbon dioxide storage.
This study was conducted at two facilities, the Sunaraya Coal Fired Power Plant (Sunaraya Project) under the Indonesian State Power Company and the existing gas power plant (Existing Gas Power Plant Project) in Indonesia. The purpose is to utilize Indonesia's abundant oil and natural gas production through reforming to produce ammonia, and to build a series of value chains for ammonia production, transportation, fuel consumption, and carbon dioxide storage.
Mitsubishi Heavy Industries will discuss the effectiveness of introducing ammonia power generation technology this time. At the same time, the plan is to conduct feasibility studies with the financial support provided by the Japanese government and institutional support measures such as carbon tax and carbon pricing in Indonesia.
In addition, both projects use blue ammonia. Blue ammonia is a low-carbon ammonia produced by separating and recovering carbon dioxide emitted during the process of reforming natural gas to produce hydrogen, and then producing NH3 from blue hydrogen.
Energy infrastructure overseas expansion project approved by the Ministry of Economy, Trade and Industry of Japan.
This feasibility study is a subsidy project from the Japanese Ministry of Economy, Trade and Industry. In the 2022 "Feasibility Study Project for Overseas Expansion of High Quality Energy Infrastructure" by the Ministry of Economy, Trade and Industry (Japanese Enterprises Promoting Infrastructure Overseas Expansion Research Project), Mitsubishi Heavy Industry's "Sunara Project" and "Existing Gas Power Plant Project" were approved.
The object of the feasibility study is overseas infrastructure projects that are expected to significantly reduce carbon dioxide emissions from energy, with the aim of utilizing Japan's excellent technology and experience in these infrastructure projects to explore and propose international contribution measures. The summary of the two approved projects is as follows:
1. Feasibility study on ammonia power generation in thermal power plants
The project name is "Feasibility Study and Value Chain Overall uation of Ammonia Mixed Combustion at Sunaraya Coal fired Power Plant in Indonesia". The theme is to uate the economic viability of transporting ammonia produced in Indonesia to power plants and using it as fuel for power generation.
We will conduct a feasibility study on the ammonia co firing of the Sunaraya coal-fired power plant, CO2 reduction of the Sulawesi Island ammonia plant (assumed as a fuel supply source), overall uation of the value chain, and future construction projects using Japanese yen loans. Mitsubishi Heavy Industries will collaborate with Mitsubishi Corporation, Nippon Industries, and others to promote the project, with the aim of starting operations around 2030.
2. Feasibility study on ammonia and hydrogen power generation in existing gas power plants
The project name is "Research project on the possibility of introducing ammonia power generation and establishing a value chain through the renovation of existing gas power plants in Indonesia". The theme is to uate the economic viability of transporting ammonia and hydrogen produced in Indonesia to nearby existing natural gas power plants and using them as fuel for power generation.
The plan is to retrofit the gas turbines of existing gas power plants, introduce power generation methods using fuel ammonia, and investigate the possibility of establishing a value chain from fertilizer production plants that provide fuel to gas power plants to the ammonia transportation process. Mitsubishi Heavy Industries will collaborate with TEPCO Design to advance the project, with the aim of starting operations in the second half of 2020.
Indonesia has proposed a policy of 23% of electricity supply coming from renewable energy by 2025 and 28% from renewable energy by 2035. Mitsubishi Heavy Industries is collaborating with the Indonesian State Power Corporation Group and the National Bandung Institute of Technology to support Indonesia in achieving its goals.
Knowledge Expansion: Can Ammonia Energy "Replace" Hydrogen Energy?
Ammonia has great potential as one of the hydrogen energy carriers, and like hydrogen, ammonia is also a zero carbon fuel that does not emit CO2 when burned directly. Ammonia has most of the functions of hydrogen, and compared to hydrogen, ammonia is easier to store and transport, and the circulation system has been improved. Therefore, the "ammonia energy society" may be realized earlier than the "hydrogen energy society".
Ammonia (NH3) has great potential as one of the hydrogen energy carriers and is the easiest to transport and store among all hydrogen energy carriers. Ammonia is a gas at room temperature and pressure, with a boiling point of -33.3 ℃. At first glance, it may be thought that a large amount of electricity is needed for liquefaction, but in reality, it can be liquefied at only 20 ℃ and 8.5 atmospheres of pressure - which is equivalent to the pressure of a bicycle tire, and can also be achieved through manual labor. That is to say, ammonia can be liquefied using only a small amount of electricity.
Ammonia has a wide range of uses, with an annual global production of 180 million tons. However, ammonia is toxic to the human body, has a strong irritating odor, and has strong corrosiveness to metals. Generally, metals cannot be used as ammonia transportation pipelines.
The first thing that must be solved for ammonia to scale up as an energy source is how to produce "green ammonia". The current synthetic ammonia model is unlikely to support the use of ammonia as an energy source and is not compatible with green electricity.
The Haber Bosch process currently used in the ammonia synthesis industry is a reaction between nitrogen and hydrogen gas through the addition of a catalyst at 450 ℃~500 ℃ and 200 standard atmospheres to generate ammonia. This method consumes extremely high energy and a large amount of fossil fuels, which does not conform to the concept of "carbon neutrality". The hydrogen used in the production process is derived from natural gas and coal processing, which involves two major directions: coal gasification industry route and natural gas reforming process, and also involves a large amount of carbon emissions.
The current research on ammonia as an energy source itself is not deep enough. The key parameters such as combustion speed, flame structure, ignition delay, and pollutant formation are still incomplete, and the reaction mechanism of ammonia combustion is not fully clear. These shortcomings also constitute obstacles in the process of using ammonia as an energy source. In the future, further in-depth research in academia is equally indispensable.
In addition to the specific technical difficulties mentioned above, ammonia as a fuel also faces other practical problems.
Firstly, the price is not of reference value (and the ton price is already higher than crude oil). The current price per ton of synthetic ammonia is entirely based on the current production process and supply-demand relationship. As we have mentioned earlier, the Hubble Bosch process will generate astonishing carbon emissions and cannot be used for large-scale production of green ammonia in the future. However, the new process is still quite far from mature, and we are not very clear about what level of price green ammonia can achieve. This raises an undeniable risk, the risk of commercialization.
Secondly, the current synthetic ammonia industry is a typical heavy asset industry, with huge initial investment and a long investment cycle. Even if the green ammonia process can be put into large-scale production, it is unlikely to have fundamental changes, which brings certain difficulties to the access of social capital. Supporting green hydrogen factories, storage and transportation facilities, power stations, and other costly projects cannot be independently solved by social capital.
At the same time, if the current synthetic ammonia industry wants to transform, the upgrading and renovation of related equipment, as well as research and development expenses, will also be huge expenses. Relying solely on the industry to raise these funds is also a problem, and the attractiveness of traditional chemical industries to capital has always been worrying. Without money, transformation is impossible, and without transformation, there is even less financing. This dilemma can be clearly observed in the transformation process of traditional energy enterprises in the ESG environment.
In other words, if ammonia energy wants to achieve significant development, support from national top-level design and supporting policies is essential. Building a friendly investment environment is crucial for industrial development and upgrading, as well as increasing the willingness to access capital.
This study was conducted at two facilities, the Sunaraya Coal Fired Power Plant (Sunaraya Project) under the Indonesian State Power Company and the existing gas power plant (Existing Gas Power Plant Project) in Indonesia. The purpose is to utilize Indonesia's abundant oil and natural gas production through reforming to produce ammonia, and to build a series of value chains for ammonia production, transportation, fuel consumption, and carbon dioxide storage.
Mitsubishi Heavy Industries will discuss the effectiveness of introducing ammonia power generation technology this time. At the same time, the plan is to conduct feasibility studies with the financial support provided by the Japanese government and institutional support measures such as carbon tax and carbon pricing in Indonesia.
In addition, both projects use blue ammonia. Blue ammonia is a low-carbon ammonia produced by separating and recovering carbon dioxide emitted during the process of reforming natural gas to produce hydrogen, and then producing NH3 from blue hydrogen.
Energy infrastructure overseas expansion project approved by the Ministry of Economy, Trade and Industry of Japan.
This feasibility study is a subsidy project from the Japanese Ministry of Economy, Trade and Industry. In the 2022 "Feasibility Study Project for Overseas Expansion of High Quality Energy Infrastructure" by the Ministry of Economy, Trade and Industry (Japanese Enterprises Promoting Infrastructure Overseas Expansion Research Project), Mitsubishi Heavy Industry's "Sunara Project" and "Existing Gas Power Plant Project" were approved.
The object of the feasibility study is overseas infrastructure projects that are expected to significantly reduce carbon dioxide emissions from energy, with the aim of utilizing Japan's excellent technology and experience in these infrastructure projects to explore and propose international contribution measures. The summary of the two approved projects is as follows:
1. Feasibility study on ammonia power generation in thermal power plants
The project name is "Feasibility Study and Value Chain Overall uation of Ammonia Mixed Combustion at Sunaraya Coal fired Power Plant in Indonesia". The theme is to uate the economic viability of transporting ammonia produced in Indonesia to power plants and using it as fuel for power generation.
We will conduct a feasibility study on the ammonia co firing of the Sunaraya coal-fired power plant, CO2 reduction of the Sulawesi Island ammonia plant (assumed as a fuel supply source), overall uation of the value chain, and future construction projects using Japanese yen loans. Mitsubishi Heavy Industries will collaborate with Mitsubishi Corporation, Nippon Industries, and others to promote the project, with the aim of starting operations around 2030.
2. Feasibility study on ammonia and hydrogen power generation in existing gas power plants
The project name is "Research project on the possibility of introducing ammonia power generation and establishing a value chain through the renovation of existing gas power plants in Indonesia". The theme is to uate the economic viability of transporting ammonia and hydrogen produced in Indonesia to nearby existing natural gas power plants and using them as fuel for power generation.
The plan is to retrofit the gas turbines of existing gas power plants, introduce power generation methods using fuel ammonia, and investigate the possibility of establishing a value chain from fertilizer production plants that provide fuel to gas power plants to the ammonia transportation process. Mitsubishi Heavy Industries will collaborate with TEPCO Design to advance the project, with the aim of starting operations in the second half of 2020.
Indonesia has proposed a policy of 23% of electricity supply coming from renewable energy by 2025 and 28% from renewable energy by 2035. Mitsubishi Heavy Industries is collaborating with the Indonesian State Power Corporation Group and the National Bandung Institute of Technology to support Indonesia in achieving its goals.
Knowledge Expansion: Can Ammonia Energy "Replace" Hydrogen Energy?
Ammonia has great potential as one of the hydrogen energy carriers, and like hydrogen, ammonia is also a zero carbon fuel that does not emit CO2 when burned directly. Ammonia has most of the functions of hydrogen, and compared to hydrogen, ammonia is easier to store and transport, and the circulation system has been improved. Therefore, the "ammonia energy society" may be realized earlier than the "hydrogen energy society".
Ammonia (NH3) has great potential as one of the hydrogen energy carriers and is the easiest to transport and store among all hydrogen energy carriers. Ammonia is a gas at room temperature and pressure, with a boiling point of -33.3 ℃. At first glance, it may be thought that a large amount of electricity is needed for liquefaction, but in reality, it can be liquefied at only 20 ℃ and 8.5 atmospheres of pressure - which is equivalent to the pressure of a bicycle tire, and can also be achieved through manual labor. That is to say, ammonia can be liquefied using only a small amount of electricity.
Ammonia has a wide range of uses, with an annual global production of 180 million tons. However, ammonia is toxic to the human body, has a strong irritating odor, and has strong corrosiveness to metals. Generally, metals cannot be used as ammonia transportation pipelines.
The first thing that must be solved for ammonia to scale up as an energy source is how to produce "green ammonia". The current synthetic ammonia model is unlikely to support the use of ammonia as an energy source and is not compatible with green electricity.
The Haber Bosch process currently used in the ammonia synthesis industry is a reaction between nitrogen and hydrogen gas through the addition of a catalyst at 450 ℃~500 ℃ and 200 standard atmospheres to generate ammonia. This method consumes extremely high energy and a large amount of fossil fuels, which does not conform to the concept of "carbon neutrality". The hydrogen used in the production process is derived from natural gas and coal processing, which involves two major directions: coal gasification industry route and natural gas reforming process, and also involves a large amount of carbon emissions.
The current research on ammonia as an energy source itself is not deep enough. The key parameters such as combustion speed, flame structure, ignition delay, and pollutant formation are still incomplete, and the reaction mechanism of ammonia combustion is not fully clear. These shortcomings also constitute obstacles in the process of using ammonia as an energy source. In the future, further in-depth research in academia is equally indispensable.
In addition to the specific technical difficulties mentioned above, ammonia as a fuel also faces other practical problems.
Firstly, the price is not of reference value (and the ton price is already higher than crude oil). The current price per ton of synthetic ammonia is entirely based on the current production process and supply-demand relationship. As we have mentioned earlier, the Hubble Bosch process will generate astonishing carbon emissions and cannot be used for large-scale production of green ammonia in the future. However, the new process is still quite far from mature, and we are not very clear about what level of price green ammonia can achieve. This raises an undeniable risk, the risk of commercialization.
Secondly, the current synthetic ammonia industry is a typical heavy asset industry, with huge initial investment and a long investment cycle. Even if the green ammonia process can be put into large-scale production, it is unlikely to have fundamental changes, which brings certain difficulties to the access of social capital. Supporting green hydrogen factories, storage and transportation facilities, power stations, and other costly projects cannot be independently solved by social capital.
At the same time, if the current synthetic ammonia industry wants to transform, the upgrading and renovation of related equipment, as well as research and development expenses, will also be huge expenses. Relying solely on the industry to raise these funds is also a problem, and the attractiveness of traditional chemical industries to capital has always been worrying. Without money, transformation is impossible, and without transformation, there is even less financing. This dilemma can be clearly observed in the transformation process of traditional energy enterprises in the ESG environment.
In other words, if ammonia energy wants to achieve significant development, support from national top-level design and supporting policies is essential. Building a friendly investment environment is crucial for industrial development and upgrading, as well as increasing the willingness to access capital.
