Green ammonia production in Denmark: Assessing future potentials and challenges

Ammonia stands as one of the most critical chemical products, finding extensive applications across various industries. Currently, its production relies heavily on fossil fuels, leading to the depletion of fossil fuel resources and significant CO2 emissions. While ammonia is primarily used as a fertilizer in agricultural sectors, its potential as a valuable carbon-free fuel has attracted significant interest in shipping and energy industries. This has led to anticipation of increased ammonia production in the future, primarily through green and carbon-free methods. However, transitioning from the conventional blue ammonia production method, which relies on fossil fuels, to green ammonia production presents considerable challenges and necessitates thorough evaluations. This study compared the impacts of green and blue ammonia production on Denmark’s energy system in 2030 and 2045. It was revealed that green ammonia production entails higher investment costs due to the utilization of electrolysers for hydrogen production, which are powered by wind turbines. Additionally, it contributes to increased investment and fixed operating costs of the energy system, as a considerably larger number of wind turbines are required for green ammonia production. However, the study’s findings indicated that green ammonia production can potentially be more cost-effective than blue ammonia production, especially in 2045 when equipped with hydrogen storage. This cost-effectiveness primarily stems from projected decreases in the costs of electrolysers and hydrogen storage vessels by 2045, as well as the omission of carbon capture and storage (CCS) from the system, along with substantial savings in fuel costs. Thus, the study demonstrated that opting for green ammonia production over blue ammonia generation could lead to a decrease in required additional annual costs by 11.4% and 40% in 2030 and 2045, respectively.