As European industrials strive to meet the RED III Industry target, which requires 42.5% (or 1.6 million tonnes) of hydrogen consumption to be replaced by RFNBOs by 2030, one critical question remains: How can hydrogen be delivered cost-effectively to refineries and factories in Northwest Europe?
There are two main options on the table:
- Import hydrogen in the form of ammonia
- Produce and supply hydrogen onsite
Given the efficiency and cost advantages, hydrogen produced overseas will likely be transported to Europe as ammonia. However, to be used as hydrogen feedstock, this ammonia must first be cracked back into hydrogen.
What is ammonia cracking?
Ammonia cracking is a process that converts ammonia into hydrogen using high temperatures and pressure. While technology is well-established, scaling it up for industrial use—where large quantities of ammonia need to be processed—remains a challenge.
Why ammonia-cracked hydrogen?
Even though ammonia cracking has yet to be proven on an industrial scale, it’s expected to provide a more cost-effective solution than local hydrogen production, especially in Northwest Europe (Germany, Netherlands, and Belgium) where electricity prices are high.
Location is key
Ammonia crackers will likely be located at existing ammonia terminals, benefiting from established commercial activities and proximity to large hydrogen consumers, such as industrial clusters. Moreover, the availability of hydrogen pipelines connecting ports to factories will be crucial for an efficient supply chain.
In summary, ammonia cracking could be the vital link in making large-scale hydrogen imports viable for Europe, helping to meet ambitious renewable energy targets while keeping costs manageable.
