Back to the front page

Ammonia Opens New Markets

Low-carbon hydrogen and its derivative low-carbon ammonia will play crucial roles in the energy transition. While the hydrogen market is expected to grow threefold by 2050, the demand for ammonia is also likely to increase significantly, with one projection predicting a 3- to 4-fold increase from 2020 levels.  

Hydrogen and ammonia are close bedfellows. Both in low-carbon or green forms, are referred to as fuels of the future, and offer ways to decarbonize energy globally. The relationship is even tighter when you consider hydrogen is converted to ammonia through a process called Haber-Bosch synthesis. This process involves reacting hydrogen with nitrogen gas (N2) under high pressure and temperature in the presence of a catalyst. It is a standardized practice that has decades of industrial use. Crucially for the refinery industry, it creates a potential new revenue path beyond the simple hydrogen market.  

Market outlook for ammonia based on end use 

Ammonia’s main use currently is for fertilizer, with over one-third of ammonia employed for both urea-based (43%) and non-urea-based fertilizers (23%), according to IEA figures for 2020. The remainder is used in various industrial applications, such as plastics, pharmaceuticals, and synthetic fibers.  

In the Net Zero Emissions by 2050 Scenario, the amount of ammonia needed globally will increase from 152Mt to 470Mt – an increase of over 200%. The overall amount used for fertilizers will increase slightly, with the majority switching toward non-urea-based fertilizers over the coming decades. Elsewhere, ammonia’s use in industrial applications will see a 29.5% increase.  

These numbers could well be dwarfed by new uses, including ammonia’s potential as a marine or maritime fuel. This could, in IEA projections, account for 43% of ammonia’s direct use by 2050 at 203Mt, while power generation is likely to be 15% of ammonia’s use. But while ammonia’s continued use in fertilizer production and industrial applications together with these two new applications will increase its demand, its applications do not end there. Ammonia’s characteristics as a transportable, energy-dense commodity will make it even more sought after as a transportation method for hydrogen as the energy transition takes hold.   

Ammonia as a transportation method for hydrogen 

Hydrogen needs to be transported to various regions for multiple reasons. Some areas with high energy demand and decarbonization goals lack enough local low-carbon or green hydrogen production, while other regions have cheaper or more reliable chances of producing hydrogen. For instance, regions rich in renewable energy, like wind or solar, can produce green hydrogen through electrolysis, and transporting this hydrogen supports integrating renewable energy into the broader energy system. The same goes for low-carbon hydrogen production, where some regions such as the US and the Middle East are well suited for hydrogen production and carbon capture and storage. 

Using ammonia as a carrier enables end users to benefit from cheaper or more accessible feedstocks if hydrogen is produced elsewhere. Ammonia is an ideal carrier method as it has a higher energy density than compressed hydrogen gas, allowing more energy to be stored and transported in ammonia form, which is more efficient for long-distance transport. Being carbon-free, ammonia also represents high energy density among non-carbon carriers. 

Importantly, ammonia can be stored and transported as a liquid at -33°C and at atmospheric pressure, eliminating the need for high-pressure or cryogenic storage. It is easier to handle, with established safety protocols and regulations. Ammonia benefits from a mature infrastructure with extensive production, storage, and transportation networks, primarily due to existing trade of ammonia for industries like fertilizer production. This existing infrastructure simplifies hydrogen transport without requiring significant risky investments. 

Finally, converting ammonia back into hydrogen at the point of use via ammonia cracking is a straightforward, proven process. This makes ammonia a flexible and practical hydrogen carrier, as hydrogen can be efficiently extracted at the destination point. 

Ammonia cracking – Is it viable? 

The technology for large-scale ammonia cracking is well-established, with decades of industrial application. Topsoe first developed ammonia cracking technology in 1978, originally for heavy water production. The largest ammonia cracking facility was built in Argentina in 1993, capable of processing 2 x 2,400 metric tons of ammonia per day in two parallel lines.  

Although cracked ammonia in this plant was used for heavy water production rather than hydrogen for fuel, the process is the identical and this has allowed Topsoe to create elite ammonia cracking technology. These decades of experience in ammonia cracking means Topsoe not only has optimized process efficiency but also has the experience in the catalysis needed in the conversion process. Leveraging this expertise, we launched the first large-scale ammonia cracking technology for commercial hydrogen production H2Retake™ in 2022. 

Ammonia cracking can be implemented in several ways: centralized and large- to mega-scale, with hydrogen distributed through extensive grids like those planned in Europe; decentralized and large-scale, co-located with major hydrogen consumers, possibly using local grids; or small-scale and decentralized, such as at hydrogen filling stations. 

Ammonia's use as a hydrogen carrier and storage medium has made it crucial in the global energy mix. The scalability and efficiency of ammonia cracking, especially with advanced technologies like Topsoe’s H₂Retake, offer significant opportunities. With decades of expertise and ongoing innovation, Topsoe is well-equipped to help ventures navigate the complexities of ammonia cracking for profitability and efficiency. As the market evolves, collaboration with Topsoe can ensure customers meet their ammonia cracking goals.