Synthetic ammonia, a relatively unassuming compound consisting of one nitrogen atom and three hydrogen atoms with the formula NH3, has played a pivotal role in human history, shaping agricultural practices and global population growth. It has effectively served as a lifeline for billions, catalyzing unprecedented population expansion and paving the way for the world we know today.

This agricultural revolution can be attributed to the discovery of the Haber-Bosch process in the early 20th century. Starting from natural gas, primarily through the autothermal reforming process of methane, we get hydrogen and CO2. Through the Haber-Bosch process, atmospheric nitrogen is fixed to the hydrogen and the most important fertilizer known to mankind is made. Before this, farmers relied on limited natural nitrogen sources, such as animal manure and nitrogen-fixing legumes, to fertilize their crops. The Haber-Bosch process was a game-changer, allowing large-scale ammonia synthesis from atmospheric nitrogen and hydrogen from natural gas. 

The importance of synthetic ammonia cannot be overstated—it has been integral in supporting life on a planet where resource limitations pose an ongoing challenge. With the increasing pressure to find sustainable alternatives, the world is now looking at different ways to make synthetic ammonia, whether it be green ammonia (starting from green hydrogen) or other low-carbon forms of ammonia.

Greenhouse Gas Emissions from Ammonia Production and Green Ammonia

Synthetic ammonia production has substantial environmental implications. The production process alone is responsible for nearly 500 Mt CO2e (million metric tons of carbon dioxide equivalent) yearly emissions. This figure represents 1-2% of global greenhouse gas (GHG) emissions, underlining the need to shift towards more sustainable production methods. Approximately 20% of industrial natural gas and 5% of industrial coal are consumed in ammonia production. 

Transitioning towards more sustainable energy sources and production methods is crucial to mitigate this environmental impact. Green ammonia, produced using renewable energy sources such as wind, solar, or hydropower and sustainable hydrogen production methods, presents a viable and promising alternative. Transitioning to green ammonia production would significantly reduce the GHG emissions associated with traditional ammonia production and contribute to global efforts to combat climate change. Both established companies as well as several startups such as Amogy, Starfire Energy, Emvolon and Nium are dedicating human capital and resources to produce Green Ammonia or alternative low-carbon ammonia sources.

Green Ammonia as a Sustainable Fuel and Hydrogen Carrier

In addition to its role as a fertilizer, Ammonia’s high hydrogen content (approximately 17.6% by weight) makes it a promising hydrogen carrier. Storing and transporting hydrogen in its gaseous form presents significant challenges due to its low energy density and its small molecular size. By contrast, ammonia, a hydrogen-dense liquid under modest pressure or refrigeration temperatures, can be handled much more easily and cost-effectively. As such, green ammonia can become a crucial element in a future green hydrogen economy.

In addition, green ammonia can serve as a sustainable fuel, particularly in sectors such as shipping that are hard to decarbonize. When combusted in an internal combustion engine, ammonia releases no CO2; the only by-products are nitrogen and water. Given its higher energy density than lithium-ion batteries and vast global distribution network, green ammonia could be a game-changer in clean energy systems.

The global ammonia market, including traditional and emerging green ammonia and its applications, is expected to grow from $78 billion in 2022 to $130 billion in 2030, a remarkable increase for such an established chemical compound. This progression underscores the growing importance of ammonia, particularly green ammonia, in various sectors.

Green Ammonia Production: Alternatives and Innovations

Several potential green production methods for ammonia are currently being developed and evaluated:

• Electrochemical Ammonia Synthesis: An emerging technology that uses renewable electricity, water, and air to produce ammonia, significantly reducing CO2 emissions. However, its efficiency, particularly yield rates, needs improvement.
• Biological Nitrogen Fixation: An emerging technology that uses microorganisms to convert atmospheric nitrogen into ammonia at ambient temperatures and pressures, reducing energy needs. The main challenges lie in scaling the technology to industrial levels energy-efficient and cost-effectively.
• The Haber-Bosch process with Carbon Capture and Storage (CCS): An emerging technology that aims to mitigate environmental impacts by capturing and storing CO2 emissions. This method is a promising retrofit of existing ammonia production plants but its widespread adoption is still impeded by high costs of carbon capture technologies and lack of an existing infrastructure for long-term carbon storage.
• The Haber-Bosch process with green hydrogen: An emerging technology that uses green hydrogen from the electrolysis of water with renewable energy instead of natural gas-derived hydrogen. However, efficient and cost-effective large-scale green hydrogen production remains a significant obstacle.

A Greener Future with Green Ammonia

Green ammonia is emerging as a potential enabler of the green hydrogen economy, as a sustainable fuel in maritime transportation and other applications, and as a replacement for synthetic ammonia in agricultural applications. With a market demand expected to almost double in the next 7 years and the quest for novel, sustainable production processes, it also presents a significant opportunity for venture investments. Funding research and development in green ammonia technologies, facilitating market growth through subsidies or incentives for green ammonia applications, and investing in infrastructure for green ammonia production and distribution are all critical steps. At Energy Capital Ventures, we are excited about the future of Green Ammonia and look forward to the opportunity to partner with game changing innovators to bring to reality a more sustainable and resilient future.