Optimizing Renewable Energy Integration and Grid Costs for Electrified Ammonia Production

Driving the Transition to Sustainable Ammonia Production Through Advanced Techno-Economic Analysis

NORTHAMPTON, MA / ACCESSWIRE / July 3, 2024 / Schneider Electric
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By Thomas Kwan

By integrating and optimizing new energy systems, ammonia production costs can be significantly reduced, even with highly volatile grid energy costs and the unstable nature of renewable energy.

Driving the Transition to Sustainable Ammonia Production Through Advanced Techno-Economic Analysis

The global energy transition and the urgent need to decarbonise the chemical industry have refocused attention on the potential of electrifying ammonia production (e-ammonia) as a means to sustainably produce low-carbon ammonia.

This study is a comprehensive techno-economic analysis based on a novel modelling approach and extensive sensitivity analysis.

Our research has significant implications for the agricultural and chemical sectors as it shows that integrating on-site renewable energy sources and intelligent control systems can increase the efficiency and profitability of ammonia production, opening up promising opportunities for cost savings in chemical production.

Our Finds

In this study, a systems approach, the integration of digital technologies and electrification, and the comprehensive optimization of the entire production process were combined to achieve the lowest possible costs and highest efficiency. In addition, different cost structures from the network were extensively modeled.

• Integration of Renewable Energy and Advanced Process Controls
  The study showed that the integration of renewable energy sources and advanced process control methods can significantly reduce the costs of ammonia production in electrified processes (e-ammonia).

• Reliability through process electrification and digital technologies
  Smart and flexible production systems that can adapt to fluctuating grid prices and weather changes (e.g. solar PV and wind) can be an advantage. Proper optimization through electrification and digital technologies unlocks these benefits.

• The importance of hydrogen storage
  Hydrogen storage (also known as hydrogen buffering) is essential for e-ammonia production and cost optimization. It can be used as a seasonal or highly cyclical buffer depending on energy mix and costs, adapting to system conditions (when intelligently managed/controlled, see point 2 above).

• Significant reduction in emissions
  Emissions from e-ammonia production depend on the grid emission factor; however, increased reliance on on-site renewable energy sources significantly reduces the emissions associated with e-ammonia production. When produced using 100% renewable energy, the process is virtually emission-free.

To read the remaining findings and the full report, click here.

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SOURCE: Schneider Electric