Ammonia, an important feedstock to our economy as it is the 2nd most produced chemical by mass, after sulphuric acid and 1 of the seven basic chemicals that are used to produce all other chemical products. Ammonia’s importance further rises as 80% of today’s ammonia is used to produce fertilizers, making it essential for food security.
But unfortunately, it is an industry entirely dependent on fossil fuels with almost 100% is produced from natural gas or coal leading to 20% of all chemical industry GHG emissions and extremely volatile prices. And hence the arises a need to decarbonise it as ammonia can be produced through renewable energy-derived hydrogen.
Besides its usage in fertilizers and chemicals, green ammonia can also serve as a clean fuel for the marine industry and power generation and as a hydrogen carrier. Green ammonia is starting to become reality 2 large-scale green ammonia projects have already achieved financial close with USD 6.5bn debt financing raised.
But full decarbonisation is challenging and will require governmental support as 2x the renewable energy capacity addition globally in 2022 would be required.
Here’s our analysis at Yamna!
