How Green Ammonia Boosts Sustainability

In a decisive move towards sustainability, Hygenco Green Energies pioneers green ammonia production in India. This significant step supports Ameropa’s transition towards sustainable agriculture, underlining the importance of this partnership.

Green ammonia, derived from renewable energy sources, is a product of technological advances, price competitiveness and supportive policies promoting renewable energy and climate action. As these technologies mature and costs fall, green ammonia is poised to play a key role in the decarbonization of heavy industry.

This agreement shows that all signs point towards net zero emissions. It also underlines India’s desire to become a global leader in green ammonia. By leveraging its renewable energy sources, India is setting a powerful example. As Amit Bansal, Co-Founder and CEO of Hygenco Green Energies, rightly points out, this is a proud moment for India and a source of inspiration for others.

Green ammonia production could help decarbonize heavy industries like steel, shipping, and chemicals that typically rely on fossil fuels to run their operations. It could be a game-changer in reducing greenhouse gas emissions in these sectors.

According to the International Energy Agency, while 29% of the electricity sector is decarbonizing, only 10% of industrial process heat is doing so. This is stark evidence of the urgent need for action. In fact, electricity accounts for 20% of global energy, industrial use 26%, and transport and building use make up the rest. The need to decarbonize industrial process heat is more urgent than ever. If we don’t address it, we risk falling short of our 2050 carbon neutrality goals.

Green ammonia is typically produced through electrolysis, where water is split into hydrogen and oxygen using electricity. The hydrogen produced in this process is then combined with nitrogen to produce ammonia. The key difference between green ammonia and traditional — grey — ammonia is the source of the hydrogen. While renewable energy produces green ammonia, fossil fuels produce grey ammonia.

Driving Market Growth and Adoption

According to Roots Analysis, the global green ammonia market is expected to reach $701 million by 2024, with a projected growth rate of over 72% between 2024 and 2032. DNV GL predicts that ammonia fuel will be widely used from 2037 and will account for 25% of the marine fuel mix by 2050. This trajectory is good news on the path to decarbonization.

First Ammonia and Germany’s Uniper will produce green ammonia from renewable energy at First Ammonia’s Texas facility in 2026. They are working together to supply green ammonia to Uniper, which will help its industrial customers reduce greenhouse gas emissions.

They will use a solid oxide electrolyzer, which generates electricity to split hydrogen and oxygen from water. They claim their process is 30% more energy efficient than a conventional electrolyzer, meaning less electricity is needed to produce the same output. It’s zero-emission ammonia, which will help Uniper accelerate the energy transition for its customers.

“Our focus on greener gases will enable Uniper customers to move away from high-emission ammonia to green and blue ammonia, thereby avoiding a significant amount of greenhouse gas emissions,” said Carsten Poppinga, Uniper’s Chief Commercial Officer, in a press release.

Green ammonia has multiple applications, making it a promising candidate for decarbonizing hard-to-abate sectors:

— It is used in agriculture as a fertilizer;

— It can also be used as a fuel or energy carrier,

— Ammonia can also be used in industrial processes, including as a chemical raw material.

Green ammonia is still an emerging concept. However, some encouraging signs and anecdotes illustrate its potential. For example, projects in Denmark and Australia are investigating the production of green ammonia using renewable energy sources such as wind and solar power. Major shipping, energy and agricultural companies are also interested in green ammonia.

Yara, Mitsubishi Corp., ENGIE and Air Liquide are companies that research and develop energy sources and conduct pilot projects. For example, Yara Clean Ammonia is working with Scatec, Egyptian Petrochemicals Holding Company and Misr Fertilizers Production Company to produce renewable ammonia.

This momentum positions green ammonia as a catalyst for more sustainable industrial practices, reflecting a shared commitment to environmental protection and a low-carbon future. Future success depends on attracting capital, building scale and lowering costs – all integral to reducing heavy industry greenhouse gas emissions.