Electrified ammonia production as a commodity and energy storage medium to connect the food, energy, and trade sectors

Ammonia, a versatile chemical that is distributed and traded widely, can be used as an energy storage medium. We carried out detailed analyses on the potential economic risks and benefits of using power-to-ammonia in three use pathways in the food, energy, and trade sectors, i.e., local sales, energy storage, and export under different levelized cost of ammonia (LCOA) scenarios. The base-case LCOA is lower than the market price, making local sales and export pathways profitable, and yet the energy storage pathway is at a loss unless ammonia-to-power efficiency is significantly improved. Four different combined use scenarios were also studied. Results show that under the base case LCOA and market assumptions, the combined use pathway leads to a loss of US$30 million. But a combined use pathway can become more profitable when there are higher predicted ammonia prices, larger export demand for low-carbon ammonia, and technology development.

Automated summary

This study conducted a detailed analysis of the potential economic risks and benefits of using ammonia as an energy storage medium in the food, energy, and trade sectors. The results showed that local sales and export pathways were profitable, while the energy storage pathway incurred losses. The combined use pathway can be more profitable under certain conditions such as higher predicted ammonia prices and larger demand for low-carbon ammonia.