Companies use ‘green’ ammonia for fertilizer and future fuel

As society tries to find ways to reduce its carbon footprint, decarbonising a wide range of sectors and industrial processes will be crucial in the coming years.

Time is of the essence when it comes to finding new solutions and technologies to do this, if the latest findings of the Intergovernmental Panel on Climate Change have anything to offer.

The report published last week warned that limiting global warming to nearly 1.5 degrees Celsius or even 2 degrees Celsius above pre-industrial levels would be “unachievable” in the next two decades without immediate, rapid and large-scale reduction. of greenhouse gas emissions.

Against this sobering backdrop, a number of companies are trying to reduce the environmental impacts of ammonia production, which is responsible for about 1.8% of the world’s CO2 emissions, according to a policy briefing from The Royal Society.

For example, three Norwegian energy companies Statkraft, Aker Clean Hydrogen and fertilizer specialist Yara launched a company on Monday that focuses on the production of so-called “green” ammonia.

The new company, called HEGRA, is jointly owned by the three companies. According to Statkraft, itself owned by the Norwegian state, HEGRA will focus on electrifying and decarbonising an ammonia plant in Herya, Norway.

The broad idea behind the initiative is that it will use renewable energy to generate ammonia on a large scale. The ammonia would then be used to produce carbon-free fertilizer. Statkraft also described green ammonia as “a promising zero-emission fuel for the maritime sector”.

Speaking to CNBC’s “Squawk Box Europe” on Monday morning, Yara CEO Svein Tore Holsether emphasized the importance of developing total solutions.

“The technology is there, but it’s also about turning it into a product,” he said. “And the nice thing about ammonia production and fertilizer production is that you already have an existing infrastructure.”

“By converting some of that into renewable energy using hydropower, which we are talking about here in Norway, we can produce a renewable fertilizer product and deliver it to farmers on a large scale quite quickly.”

In terms of a timeline, Holsether indicated it would take five to seven years to get the project started.

The establishment of HEGRA is just one example of how companies are looking for ways to reduce emissions from ammonia production.

In Australia, Yara is also working with ENGIE to develop a plant that will produce renewable hydrogen and ammonia. The project is supported by a 42.5 million Australian dollar ($31.15 million) grant from the Australian government.

Last week, oil and gas giant BP announced that “production of green hydrogen and green ammonia using renewable energy” is now technically feasible on a large scale in Australia.

The energy major’s conclusion is based on the findings of a feasibility study announced in May 2020 and supported by the Australian Renewable Energy Agency, solar developer Lightsource bp and professional services firm GHD Advisory.

In a statement, BP described the sprawling state of Western Australia as “an ideal place” for the development of “large-scale renewable energy sources that can in turn produce green hydrogen and/or green ammonia for domestic and export markets.”

CNBC’s Sam Meredith contributed to this report