green e-ammonia production via water electrolysis and ... · • decentralized fertilizer...

Green e-Ammonia production via water electrolysis and implications on the fertilizer industryDr. Ing. Ireneusz Pyc, Dr. Ing. Gerhard Zimmermann, Siemens Gas and Power

Company

logo

Frei verwendbar

• Global momentum:

Hydrogen and Power-to-X

• Decarbonization: The big issue

• Key technology: H2O-electrolysis

• Economics: Hydrogen and green ammonia

• What needs to be done: Implications for

ammonia-/ fertilizer-industry

Agenda

Transformation: A New Era for the Agri-nutrients Industry

Hydrogen and Power-to-X achieve a global momentum

Multiple sites with good PV and wind conditions provide a high potential for production of green hydrogen and fuels

Power-To-X: Link between power sector and energy-consuming sectors Sources German committee of World Energy Council, Oct. 2018


Electrolysis and synthesis: key technologies in sector coupling

and conversion of “green” electrons in “green” molecules

Solar (PV)

Wind

H2O

O2H2

Haber-Bosch

N2

Ammonia

(and secondary products,

e.g. urea, MAP, DAP)

Methane

Methanol (and secondary

products, e.g. MTBE, DME,

gasoline, kerosene)

Fischer-Tropsch products

(diesel, gasoline, kerosene

waxes)

Carbon-free fuel - mobility, heat

• Chemical feedstock (e.g. fertilizer)

• Agriculture

• Carrier for hydrogen or direct use as

fuel

Carbon-neutral fuels - mobility, heat

• Chemical feedstock

• Blending or direct use for mobility

• Long-term storage + re-electrification

Hydrogen

Carbon-free fuel - mobility, heat

• Direct use for mobility (fuel cell)

• Fuel or gas-turbines, re-electrification

• Chemical feedstock (e.g. refinery)

Power Generation Conversion Applications

Air separation

Geothermal

Intermittent RES

Continuous RES

N2

Syntheses,

e.g. Fischer-Tropsch

Water

electrolysis

Hydro

PtHydrogen

PtAmmonia

PtC-based FuelsElectrical

energy

CO2Direct air capture

Capture from flue gases

(power, industry)

CO2

MTBE: Methyl-tert-butylether (anti-nock additive)

DME: Dimethylether

MAP: Monoammonium phosphate

DAP: Diammonium phosphate


It’s all about decarbonization: transportation sector with high potential for reduction of CO2-emissions

Chemical industry contributes with 4% to global CO2 - emissions

Sources 1) energy demand and consumption, CO2 emissions estimated for the year 2017, based on IEA World Energy Outlook, Nov 2018,

Potential for reduction of global CO2 emissions via

energy carrier change and efficiency improvement

-4 % -10 % -23 %

32.6 bn t

Chemical

industry

Heating

(buildings)Transportation

Feedstock

2. Transportation

Final energy consumption (fossil)

2.7 bn toe/a 1)

1. Chemical industry

- Energy demand (fossil): 0.5 bn toe/a 1)

Fuel Production

Use as feedstock for chemicals

- Ammonia, fertilizer

- Olefins

- Formaldehyde

- Plastics

• Fuel blending

• Fuel additives (e.g. anti-knock agents)

• Replacement of fossil fuels by e-H2 / C-neutral fuels

- Transportation

- Road-/railway: e-H2, e-Methanol, FT e-Diesel

- Shipping: e-Methanol, FT e-Diesel, e-LNG

- Aviation: kerosene (jet fuel), e-H2

- Heat production

- Industry: H2, e-Methane, e-Diesel, e-methanol

- Home sector: H2, e-Methane, FT diesel, e-methanol

Final energy consumption (fossil)

1.1 bn toe/a 1)

3. Heating (buildings)


It’s all about decarbonization: reduction potential of CO2

emissions from ammonia production

Global production of ammonia (2015 est)

180 mio.

t/aGross

~340 mio.

t/a CO2

~85 -100 g

CO2/MJ

Reduction of specific CO2 emissions

via green electricity-/ hydrogen-usePotential for reduction of CO2 - emissions

Po

we

r T

o A

mm

on

ia (

“gre

en H

2”)

<20 g

CO2/MJ

From

fossil

sourcesSMR

Source: IEA world energy Outlook, Nov 20189, Power-to Liquids, UBA Study, 2016, Post-fossile Energieversorgungsoptionen für einen GHG neutralen Verkehr im Jahr

2050, UBA Berlin 2015, Dechema 2017, ammoniaindustry.com, March 2018

Replacement of “black” by “green” hydrogen in ammonia production can significantly reduce CO2 emissions

Switching to green-H2

to replace black-hydrogen

would cause demand

for additional 1900 TWh

of green electricity, which

corresponds with 30 %

of the current global power

generation based on

renewables

consequence:

Net

~230 mio.

t/a CO2

~50 mio

t CO2/a

Today production bases on fossil fuels (90%

natural gas) via steam methane reforming (SMR)

Power-to-Ammonia using green electrical

energy reduces the CO2 emissions up to 90%

Parts of the intermediate CO2 released from SMR

are used for synthesis of urea and reduces overall

CO2 emissions

from

fossil

sources

from

fossil

sources


High dynamics of PEM electrolysis enable smooth integration of volatile electricity from wind and solar PV

The latest double-digit megawatt Siemens PEM electrolyzer (Silyzer 300) is currently the most powerful in the market

Hydrogen production 340 kg/h → 2,720 kg/h O2

Plant efficiency (HHV1) > 75 %

Start up time <1 min, enabled for PFRS2

Dynamics in range 10 %/s over full power range

Minimal load 20 % single module

Dimension Full Mod. Array 13.0 x 6.0 x 3.0 m

Array lifetime > 20 a (Module ≈ 10 a)

Plant availability ~ 95 %

Demin water consumption 10 l/kg H2

Dry gas quality3 99.999 %

Delivery pressure customized

Power Demand 17.5 MW

1) High heat value related, plant efficiency includes rectifier, transformer, transformer cooling and gas cooling 2) Primary Frequency Response Service 3) w/ DeOxo

Silyzer 300: 17.5 MW

Module: 730 kW


Green e-H2 can compete with fossil-based in regions with very good conditions for renewable electricity production

It’s all about economics: hydrogen production costs depend strongly on electricity costs

2000 h/a

4000 h/a

6000 h/a

Levelized cost of hydrogen

(USD/kg)

Underlying general assumptions: WACC 9%, electrolysis efficiency 75% (HHV),

20 year lifetime/depreciation

Price of green electricity

(US ct/kWh)

1) H2 from natural gas: today: 6-8 $/GJ, 0 USD /t CO2

2) H2 from natural gas: 2025-2030: 8-10 $/GJ, 80-100 USD /t CO2 scenario min: depreciated SMR, max: full costs

Fossil (black)

hydrogen SMR

• Today

1.1-1.6 USD/kg H21)

• 2025-2030

2.5-3.2 USD/kg H22)

Full load

0

1

2

3

4

5

6

7

8

0 1 2 3 4 5 6 7 8 9

hydrogen

electrolysis

Example: wind

North-/West-

Africa coast

Example: cost structure of e-H2 production

(USD/kg)

example for electricity price of

5 US ct/kWh, 45% load factor for electrolysis


SMR-NH3

retail prices

2014 – 2018

WACC: 5%

200

300

400

500

600

700

800

900

1,000

Costs sensitivity of large-scale green ammonia productionat wind exposed sites in North/West Africa

Green ammonia production in coastal areas North/West Africa – production costs of 500-600 USD/t ammonia

achievable for WACC of 5% and LCoE of less than 30 USD/MWhel

20 25

Electricity Price (LCoE), USD/MWhel)

Le

ve

lized C

ost

of A

mm

onia

, U

SD

/t

30 35 40

CAPEX

electrolysis

First projects

todayLow

WACC: Weighted Average Costs of Capital

Mature case

in 5-10 years

WACC: 9% High

Low

High


Siemens covers important parts of the value chain to deliver Power-to-X projects on turnkey basis

Machinery

Financing

Components and EquipmentPlanning &

Consulting N2 SupplyElectrolysis Process

Solution Provider

Balance of Plant (BoP)Siemens

• One face to the customer

• Overall system design

• Integration of Siemens

products and technology

& products from external

partners

Electrolysis

PEM technology

• SILYZER 200

• SILYZER 300

Ammonia

synthesis

Haber-Bosch process

Equipment

• Compressors

• Storage

H2, NH3, water

• Water treatment

• Elec. equipment,

• Mech. equipment

• Turbines/engines

(back-up power)

Siemens

• External supply

• Air separation

Ext. SourceSiemens

Grid Connection

Power Grid

• Transmission lines

• Substations

• Transformers

• Power cable

systems

Siemens

Nitrogen

supply

Wind park

e.g. Siemens Gamesa

Renewable Energy

Ext. Source

• Alkali (external)


Implications on ammonia industry: what needs to be done to build up “green”- H2” fertilizer industry?

Economics: gap to black ammonia can be closed

• Close gap to black ammonia prices via

• “green” hydrogen – production based on electrolysis

o dedicated electricity production, preferably large scale at locations with excellent wind-/PV-conditions.

o CAPEX for electrolysis to be decreased further

• “blue” hydrogen – production based on natural gas (SMR) and CCS/CCU at locations with low gas prices

• Develop business models allowing use of stable, CAPEX-based long term supply conditions of ammonia

• Develop and use financing sources enabling low levels of WACC

• Consider soft factors for project realization:

• independence of fossil fuels (imports)

• decentralized fertilizer production in remote areas

Technology: no special challenges in sight

• Commercial level maturity of green ammonia production to be achieved over few years.

• Reliability and costs of electrolysis, operation dynamics and optimization of entire plant operation in focus.

CCS: Carbon Capture and Storage

CCU: Carbon Capture and Utilization


Implications on ammonia industry: what needs to be done to build up “green”- H2” fertilizer industry?

Regulatory: drive progress through policy

• Adequate carbon prices must play a central role in driving decarbonization of fuels and chemicals.

Consequently CO2 prices in range of 100-150 USD/t CO2 (tax- or trade-models) until mid of next decade

recommended.

Create pragmatic regulation and legal framework for CO2 - trading to build up international CCU-markets

Apply learnings from (European) transportation sector:

• introduce binding targets for consumption of chemicals (ammonia) based on renewable hydrogen

• exempt H2 -production/PtX - technologies from fees and taxes in the phase of their market introduction

• apply rules of technology non-discrimination based on life-cycle analysis


What needs to be done to build up “green”- H2” fertilizer industry?

Do not wait for best time to combine ideal technology, economics or regulation framework.

Technology

EconomicsRegulation

Recognize value of quick learnings and commercialization opportunities

Pragmatic

approach

Thank youwww.gpca.org.ae

green e-ammonia production via water electrolysis and ... · • decentralized fertilizer...

Documents