This comprehensive study delves into the economics of decarbonising Europe’s ammonia industry by examining four distinct pathways: unabated steam methane reforming (SMR), SMR with carbon capture and storage (CCS), biomass-based hydrogen (BIOH₂), and renewable hydrogen generated through alkaline electrolyser cells (AEC). The analysis spans 52 ammonia production sites across Europe, projecting from 2030 to 2040, while considering various policy landscapes, such as RED III and CBAM.
In a policy-less scenario, the unabated SMR stands out as the most economical option, largely due to the depreciated infrastructure of many facilities, which lowers overall expenses. However, well-crafted incentives can dramatically enhance the appeal of renewable-based ammonia, especially in regions rich in solar and wind energy.
The study underscores challenges such as stringent hourly matching rules for green hydrogen that inflate production costs, signalling an urgent need for more adaptable policies alongside robust energy infrastructure. Furthermore, it reveals that US-sourced ammonia from CCS, BIOH₂, or AEC aligns with EU carbon intensity regulations, highlighting the necessity for fair carbon accounting to foster genuine market competitiveness.
In conclusion, the findings advocate for synchronised strategies and flexible policy frameworks as essential to cultivating a dynamic, low-carbon ammonia sector in Europe, emphasising the intricate balance between economic viability and environmental responsibility.
This article investigates the decarbonisation of Europe’s ammonia industry through four pathways: unabated SMR, SMR with CCS, BIOH₂, and AEC, spanning 52 production sites from 2030 to 2040. It highlights the economic viability of SMR without policy aid but the potential of renewables in suitable regions. It stresses the need for flexible policies and infrastructure to support green hydrogen use, underscoring that US-produced ammonia can meet EU standards, advocating for coordinated strategies to develop a low-carbon sector.
The study reveals that while unabated SMR may be the most cost-effective option without policy backing, the development of a viable low-carbon ammonia sector in Europe hinges on strategic policy implementation and incentives, particularly in regions rich in renewable resources. Flexibility in policy and robust infrastructure are crucial for navigating the complex dynamics of decarbonisation, ensuring that Europe can achieve its carbon reduction goals in a competitive global market.
Original Source: hydrogen-central.com
