Let us go the land of the rising sun Japan arguably the country that uses ammonia the most for power generation. The project Hekinan, that feed Toyota factories, is aimed at achieving use of 20% ammonia at a 1 GW unit for about two months, using 30,000-40,000 tones of ammonia, by March 2025. If successful, it will be the world's first trial in a large commercial plant, and Japan hopes to use ammonia to gradually replace coal and develop a fully ammonia-fired power plant by 2050. And while it is true that power companies can use existing plants without major modifications and technology for production, transport and storage are already established, the reality is costs, adequate supply of ammonia and technology to control nitrogen oxide (NOx) emissions. At 1 Gw with a 20% threshold, requires 500,000 tones of the fuel. Doing it at all coal power plants at major Japanese utilities would require 20 million tones of ammonia, equivalent to 10% of global production, the industry ministry says. And power generation costs with 20% ammonia in the mix are 12.9 yen per kilowatt hour(kWh), fully 24% above the cost with 100% coal. So while ammonia will grow, it's growth is better suited for food production-a.k.a a back door way around the LNG export ban.
Difficult to disagree. Sounds similar to what we suggest: ammonia will grow, but not to the levels that policy ambitions would like to suggest because they're simply up against too many headwinds/cheaper competition/etc... but the growth that does happen will still be sizeable.
Let us go the land of the rising sun Japan arguably the country that uses ammonia the most for power generation. The project Hekinan, that feed Toyota factories, is aimed at achieving use of 20% ammonia at a 1 GW unit for about two months, using 30,000-40,000 tones of ammonia, by March 2025. If successful, it will be the world's first trial in a large commercial plant, and Japan hopes to use ammonia to gradually replace coal and develop a fully ammonia-fired power plant by 2050. And while it is true that power companies can use existing plants without major modifications and technology for production, transport and storage are already established, the reality is costs, adequate supply of ammonia and technology to control nitrogen oxide (NOx) emissions. At 1 Gw with a 20% threshold, requires 500,000 tones of the fuel. Doing it at all coal power plants at major Japanese utilities would require 20 million tones of ammonia, equivalent to 10% of global production, the industry ministry says. And power generation costs with 20% ammonia in the mix are 12.9 yen per kilowatt hour(kWh), fully 24% above the cost with 100% coal. So while ammonia will grow, it's growth is better suited for food production-a.k.a a back door way around the LNG export ban.
Difficult to disagree. Sounds similar to what we suggest: ammonia will grow, but not to the levels that policy ambitions would like to suggest because they're simply up against too many headwinds/cheaper competition/etc... but the growth that does happen will still be sizeable.