The potential of green ammonia production to reduce renewable power curtailment and encourage the energy transition in China

The pursuing of inter-regional power transmission to address renewable power curtailment in China has resulted in disappointing gains. This paper evaluates the case of local green ammonia production to address this issue. An improved optimization-based simulation model is applied to simulate lifetime green manufacturing, and the impacts of main institutional incentives and oxygen synergy on investment are analysed. Levelized cost of ammonia is estimated at around 820 USD/t, which is about twice the present price. The operating rate, ammonia price, the electrical efficiency of electrolysers and the electricity price are found to be the key factors in green ammonia investment. Carbon pricing and value-added tax exemption exert obvious influences on the energy transition in China. A subsidy of approximately 450 USD/t will be required according to the present price; however, this can be reduced by 100 USD/t through oxygen synergy. Compared to inter-regional power transmission, green ammonia production shows both economic and environmental

Automated summary

This paper evaluates the case of local green ammonia production to address renewable power curtailment in China. The key factors in green ammonia investment include the operating rate, ammonia price, the electrical efficiency of electrolysers and the electricity price. Carbon pricing and value-added tax exemption have obvious influences on the energy transition in China.