- Ammonia joins hydrogen for emission reduction.
- The shipping industry subsidized ammonia over batteries and biofuels for emission reduction.
- Ammonia’s simpler logistics and subsidies attract fertilizer companies for cost-effective storage and shipping.
- Endorsements position ammonia as a priority alternative fuel, with industry leaders like Japan’s JERA integrating ammonia blends, marking a significant shift.
Challenges in Carbon Emission Reduction
Tackling carbon emissions proves challenging, especially as industries grapple with cost-effective alternatives. Hydrogen has long been a frontrunner, but a lesser-known contender, ammonia, has officially joined the conversation.
Shipping’s Unique Ammonia Solution
A 2021 International Energy Agency report suggests that, while cars and planes may lean on batteries and biofuels, the shipping industry could rely on ammonia to eventually cut emissions. Ammonia, composed of hydrogen and nitrogen, primarily used in fertilizer production, currently contributes 1 to 2 percent of global carbon emissions. However, proponents advocate for a cleaner, low-carbon version, potentially cheaper to produce due to US government subsidies.
Logistical Advantages of Ammonia
Unlike hydrogen, ammonia boasts simpler logistics, making it more cost-effective to store and ship over long distances. As subsidies gain prominence in discussions, fertilizer companies are taking note, leveraging existing infrastructure for ammonia production.
Global Endorsement and Industry Response
The United Nations, Japan, and the US, among others, are endorsing ammonia, with the United Nations prioritizing it as an alternative fuel to meet the global shipping emission reduction goal by 2050. Japan’s major power player, JERA, plans to run a significant coal-fired generator with an innovative ammonia blend, signaling growing interest in testing this alternative in South Korea and beyond.
Strategic Pivot in Fertilizer Industry
As global demand for traditional fertilizers declines, fertilizer companies strategically pivot towards cleaner ammonia production. While hydrogen remains a dominant player in alternative fuel discussions, the emergence of ammonia offers a welcome expansion of potential substitutes.
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Source: Globaltrademag
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